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Vince.(VNCE) - 2026 Q1 - Quarterly Results
VNCEVince.(VNCE)2025-05-02 11:00

Financial Performance - Q4 FY2024 net sales increased 6.2% to 80.0millioncomparedto80.0 million compared to 75.3 million in Q4 FY2023, driven by strength in the wholesale channel[3] - FY2024 net sales totaled 293.5million,aslightincreaseof0.2293.5 million, a slight increase of 0.2% from 292.9 million in FY2023, primarily due to the wholesale channel performance[6] - Q4 FY2024 gross profit was 40.1million,representingagrossmarginof50.140.1 million, representing a gross margin of 50.1%, up from 45.4% in Q4 FY2023, with a 320 basis point improvement from lower promotional activity[3] - FY2024 gross profit increased to 145.2 million, or 49.5% of net sales, compared to 133.3million,or45.5133.3 million, or 45.5% of net sales in FY2023[6] - The company reported a net loss of 28.3 million, or (2.24)pershare,inQ4FY2024,comparedtoanetlossof(2.24) per share, in Q4 FY2024, compared to a net loss of 4.7 million, or (0.37)pershare,inthesameperiodlastyear[6]−AdjustedincomefromoperationsforFY2024was(0.37) per share, in the same period last year[6] - Adjusted income from operations for FY2024 was 7.3 million, compared to 4.0millioninFY2023,despitealossfromoperationsof4.0 million in FY2023, despite a loss from operations of (17.2) million[6] Future Outlook - The company expects Q1 FY2025 net sales to decline approximately 5% and adjusted operating margin to decrease by approximately 500 basis points compared to the prior year[15] - Forward-looking statements indicate potential risks including changes in trade policies, cash flow maintenance, and competition in the apparel industry[25] Cost Management and Savings - The Transformation Program yielded over 10millioninsavingsduringFY2024,withongoingadjustmentstomitigatetariffimpacts[14]DebtandEquity−ThecompanyendedFY2024withtotalborrowingsof10 million in savings during FY2024, with ongoing adjustments to mitigate tariff impacts[14] Debt and Equity - The company ended FY2024 with total borrowings of 19.2 million and 39.8millionofexcessavailabilityunderitsrevolvingcreditfacility[12]−Long−termdebtstoodat39.8 million of excess availability under its revolving credit facility[12] - Long-term debt stood at 19,156,443, a slight increase from 9,950,000[27]−Totalequitywasreportedat9,950,000[27] - Total equity was reported at 222,735,000, down from 225,149,000[27]SegmentReporting−Thecompanyhasidentifiedtworeportablesegments:VinceWholesaleandVinceDirect−to−consumer,followingthewinddownofRebeccaTaylorandParker[10]RecentPerformanceMetrics−NetsalesforthethreemonthsendedFebruary1,2025,were225,149,000[27] Segment Reporting - The company has identified two reportable segments: Vince Wholesale and Vince Direct-to-consumer, following the winddown of Rebecca Taylor and Parker[10] Recent Performance Metrics - Net sales for the three months ended February 1, 2025, were 79.95 million, an increase from 75.31millionforthesameperiodin2024,representingagrowthof3.575.31 million for the same period in 2024, representing a growth of 3.5%[26] - Gross profit for the three months ended February 1, 2025, was 40.08 million, with a gross margin of 50.1%, compared to a gross profit of 34.17millionandamarginof45.434.17 million and a margin of 45.4% in the prior year[26] - The company reported a net loss of 28.35 million for the three months ended February 1, 2025, compared to a net loss of 4.67millionforthesameperiodin2024[26]−Selling,generalandadministrativeexpenseswere4.67 million for the same period in 2024[26] - Selling, general and administrative expenses were 37.78 million, accounting for 47.2% of net sales, slightly down from 47.6% in the previous year[26] - The impairment of goodwill amounted to 31.97millionforthethreemonthsendedFebruary1,2025,whichwasnotpresentinthesameperiodofthepreviousyear[26]−Thecompanyexperiencedalossfromoperationsof31.97 million for the three months ended February 1, 2025, which was not present in the same period of the previous year[26] - The company experienced a loss from operations of 29.67 million, compared to a loss of 1.68millionintheprioryear,indicatingasignificantdeclineinoperationalperformance[26]−BasicanddilutedlosspershareforthethreemonthsendedFebruary1,2025,was1.68 million in the prior year, indicating a significant decline in operational performance[26] - Basic and diluted loss per share for the three months ended February 1, 2025, was 2.24, compared to a loss of 0.37pershareinthesameperiodof2024[26]−TheweightedaveragesharesoutstandingforthethreemonthsendedFebruary1,2025,were12,636,277,comparedto12,503,472intheprioryear[26]AssetandLiabilityManagement−Totalcurrentassetsincreasedto0.37 per share in the same period of 2024[26] - The weighted average shares outstanding for the three months ended February 1, 2025, were 12,636,277, compared to 12,503,472 in the prior year[26] Asset and Liability Management - Total current assets increased to 96,576,684 from 80,202,000[27]−Cashandcashequivalentsroseto80,202,000[27] - Cash and cash equivalents rose to 607,000 from 357,000[27]−Totalliabilitiesandstockholders′equityamountedto357,000[27] - Total liabilities and stockholders' equity amounted to 222,735,000 compared to 225,149,000[27]−Currentliabilitiesdecreasedto225,149,000[27] - Current liabilities decreased to 73,546,661 from 42,828,000[27]−Accountspayabledecreasedto42,828,000[27] - Accounts payable decreased to 35,090 from 31,678[27]−Accruedsalariesandemployeebenefitsincreasedto31,678[27] - Accrued salaries and employee benefits increased to 87,093 from 96,967[27]−Totalcurrentliabilitiesdecreasedfrom96,967[27] - Total current liabilities decreased from 73,546,661 to 42,828,000[27]−Goodwillreportedat42,828,000[27] - Goodwill reported at 31,973,000, unchanged from previous figures[27] Year-End Financial Results - For the three months ended February 1, 2025, the net loss was 28,345,000,comparedtoalossof28,345,000, compared to a loss of 31,973,000 for the same period last year, reflecting an improvement of approximately 11%[29] - The loss from operations for the year ended February 1, 2025, was 17,176,000,whiletheadjustedlosswas17,176,000, while the adjusted loss was 7,318,000, indicating a significant reduction in operational losses[29] - The company reported a net income of 25,446,000fortheyearendedFebruary3,2024,withearningspershareof25,446,000 for the year ended February 3, 2024, with earnings per share of 2.04, compared to 2.57inthepreviousyear[31]−TheinterestexpensefortheyearendedFebruary1,2025,was2.57 in the previous year[31] - The interest expense for the year ended February 1, 2025, was 6,569,000, consistent with the previous year's figures, indicating stable financing costs[29] - The company recognized a goodwill impairment charge of 31,973,000fortheyearendedFebruary1,2025,whichsignificantlyimpactedthereportedincome[29]−Theequityinnetincomeofequitymethodinvestmentswas31,973,000 for the year ended February 1, 2025, which significantly impacted the reported income[29] - The equity in net income of equity method investments was 606,000 for the three months ended February 1, 2025, showing stable performance from these investments[29] - The company experienced a tax benefit of 3,006,000duetothereversalofanon−cashdeferredtaxliabilityassociatedwiththegoodwillimpairment[30]−TheadjustedlosspershareforthethreemonthsendedFebruary1,2025,was3,006,000 due to the reversal of a non-cash deferred tax liability associated with the goodwill impairment[30] - The adjusted loss per share for the three months ended February 1, 2025, was 0.06, compared to a loss of 2.53pershareasreported[29]−Thecompanyreportedagainonthesaleofasubsidiaryamountingto2.53 per share as reported[29] - The company reported a gain on the sale of a subsidiary amounting to 7,634,000 for the year ended February 3, 2024, contributing positively to the overall financial results[31] - The total transaction-related expenses for the year ended February 3, 2024, were $5,030,000, reflecting costs associated with strategic initiatives[31]