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Vince.(VNCE) - 2025 Q3 - Quarterly Results
VNCEVince.(VNCE)2024-12-10 12:00

Financial Performance - Total net sales for Q3 FY2024 decreased 4.7% to 80.2millioncomparedto80.2 million compared to 84.1 million in Q3 FY2023[4] - Gross profit was 40.1million,representing50.040.1 million, representing 50.0% of net sales, an increase from 44.2% in the same period last year, driven by lower product costing and freight costs[5] - Income from operations was 5.8 million, up from 2.8millioninQ3FY2023,withadjustedincomefromoperationsinQ3FY2023being2.8 million in Q3 FY2023, with adjusted income from operations in Q3 FY2023 being 3.1 million[7] - Net income for Q3 FY2024 was 4.3millionor4.3 million or 0.34 per diluted share, compared to 1.0millionor1.0 million or 0.08 per share in the same period last year[7] - Net income for the three months ended October 28, 2023, was 983thousand,comparedto983 thousand, compared to 4,349 thousand for the same period in 2024, resulting in basic earnings per share of 0.08versus0.08 versus 0.35[29] - Net income for the nine months ended October 28, 2023, was 30.114million,adecreasefrom30.114 million, a decrease from 32.043 million in the previous period, representing a decline of approximately 6.0%[33] Operational Metrics - The company ended Q3 FY2024 with 61 company-operated Vince stores, a net decrease of 5 stores since Q3 FY2023[7] - For Q4 FY2024, the company expects net sales to decline mid-single-digits to up low-single digits compared to 75.3millioninQ4FY2023[20]−ForthefullyearFY2024,thecompanyanticipatestotalnetsalestodecreaseinthelow−single−digitrangecomparedto75.3 million in Q4 FY2023[20] - For the full year FY2024, the company anticipates total net sales to decrease in the low-single-digit range compared to 292.9 million in FY2023[21] - Net inventory at the end of Q3 FY2024 was 63.8million,downfrom63.8 million, down from 69.6 million at the end of Q3 FY2023, reflecting a decline in Vince inventory[14] - Selling, general and administrative expenses for the three months ended October 28, 2023, were 34,356thousand,representing40.934,356 thousand, representing 40.9% of net sales, compared to 34,297 thousand and 42.8% for the same period in 2024[29] Debt and Cash Flow - The company has total borrowings of 50.8millionand50.8 million and 44.1 million of excess availability under its revolving credit facility as of the end of Q3 FY2024[13] - Current liabilities decreased to 57,695thousandasofNovember2,2024,from57,695 thousand as of November 2, 2024, from 63,478 thousand as of October 28, 2023[30] - Long-term debt decreased to 50,600thousandasofNovember2,2024,comparedto50,600 thousand as of November 2, 2024, compared to 57,926 thousand as of October 28, 2023[30] - The company anticipates continued challenges in maintaining adequate cash flow and managing inventory commitments in response to customer demand fluctuations[28] Strategic Initiatives - The Transformation Program is expected to yield over 30millioninsavingsoverthenextthreeyears,withapproximately30 million in savings over the next three years, with approximately 10 million in savings anticipated for FY2024[16] - Future outlook includes strategic adjustments following the Authentic Transaction, aimed at enhancing operational efficiency[33] - The company is focusing on market expansion and new product development as part of its growth strategy[33] Other Financial Highlights - The company reported a gain on the sale of a subsidiary amounting to 7,634thousandfortheninemonthsendedNovember2,2024[29]−Thecompanyreportedanincome(loss)fromoperationsof7,634 thousand for the nine months ended November 2, 2024[29] - The company reported an income (loss) from operations of 33.303 million for the nine months ended October 28, 2023, compared to 32.043million,indicatinganincreaseofabout3.932.043 million, indicating an increase of about 3.9%[33] - The equity in net income of equity method investment was 863 thousand, unchanged from the previous period[33] - The income tax effect included a 6.0milliondiscretetaxbenefitrelatedtothechangeinclassificationofthecompany′sVincetradenameindefinite−livedintangibles[33]−Thecompanyincurredtransaction−relatedexpensesassociatedwiththeAuthenticTransaction,impactingoverallfinancialperformance[33]−Dilutedweighted−averagesharesoutstandingfortheninemonthsendedOctober28,2023,were12,614,960[33]−Thecompanyexperiencedaprovisionforincometaxesof6.0 million discrete tax benefit related to the change in classification of the company's Vince tradename indefinite-lived intangibles[33] - The company incurred transaction-related expenses associated with the Authentic Transaction, impacting overall financial performance[33] - Diluted weighted-average shares outstanding for the nine months ended October 28, 2023, were 12,614,960[33] - The company experienced a provision for income taxes of 5.368 million, reflecting changes in tax obligations[33] - The gain on the sale of Vince intangible assets was reported, contributing to the overall financial results[33]