Vince Holding Corp.

Ladies and gentlemen, thank you for all joining. I would like to welcome you to the VINCE Q3 2022 earnings conference call. All lines have been placed on mute to prevent any background noise. And for operator assistance at any time, please press the start zero key. Thank you. I will now turn the conference over to your host, Amy Levy. Please go ahead when you're ready, Amy.

Thank you, and good morning, everyone. Welcome to Vince Holding Corp's third quarter fiscal 2022 results conference call. Hosting the call today is Jack Schwefel, Chief Executive Officer, and Dave Stesko, Chief Financial Officer. Before we begin, let me remind you that certain statements made on this call may constitute forward-looking statements, which are subject to risks and uncertainties that could cause actual results to differ from those that the company expects. Those risks and uncertainties are described in today's press release and in the company's SEC filings, which are available on the company's website. Investors should not assume that statements made during the call will remain operative at a later time, and the company undertakes no obligation to update any information discussed on the call. Following today's remarks, there will be no question and answer session. Now, I'll turn the call over to Jack.

Thank you, Amy, and thank you, everyone, for joining us this morning. And we'll begin with an overview of our third quarter performance, focusing on our events business as we continue to execute the wind down of our Rebecca Taylor business that we announced in our Q2 call. Similar to others, the third quarter was challenged by macro-related headwinds as our consumer continued to contend with elevated inflationary pressures and higher interest rates. And the retail sector increased its promotional activity as many, including ourselves, to progressive actions to reduce inventory balances. With our strategic decision to exit the Rebecca Taylor business, we have realigned our resources to focus on the current scale of our business and are continuing to evaluate our processes and costs to drive further efficiencies and enhance disciplines across our organization. We believe through the actions we are taking today, we will be better positioned for a long-term profitable growth. Now turning to our Q3 results more specifically, our top-line performance at Vince was driven by our wholesale channel, where we saw a nice reception across our men's and women's assortment, particularly as we transitioned into the cooler qualities. The performance offset the slight decline in our direct-to-consumer results, which continued to be impacted by the normalization of e-commerce traffic trends. In Q3, we launched our New Pants program for men's, expanding our assortment beyond lounge and stretch, setting the foundation for continued growth with our men's business. In addition, in men's, we saw strength in layering pieces with items such as our shirt jacket and long-sleeved mitts. In both men's and women's, we saw strength in our sweaters, particularly as the quarter progressed and customers focused on buy now, wear now products. In addition, we have seen positive initial response to our cold-weather accessories for both men and women with our new licensing partner, Anacap. With respect to our wholesale performance, as part of Vince's 20th anniversary celebration, we introduced special capsule collections, which were showcased at select wholesale partners who celebrated in our hashtag I Love Vince campaign. We were thrilled with the results we saw, which we believe are a testament to the strength of the Vince brand. In fact, our collection was the best contemporary center stage activation to date in Salstrom Nordstrom, and we had our highest volume month at Nordstrom's New York City location since it opened in 2019. Turning to our stores, in Q3, our retail stores experienced an increase in foot traffic over 2021. There was notable strength in Washington, D.C. and Boston locations, as well as Hawaii and Las Vegas, primarily attributed to the traffic increases. We are pleased with our new store in the Seaport neighborhood in Boston, as well as our newly relocated store in Merrick Park and Carl Gables Park. In Q3, we also completed the successful relaunch of the Vince website, as well as our new customer data platform, or CDP. Our new website is faster and enhances the customer mobile experience. We have been encouraged by the initial improvement we have seen with mobile conversion following the relaunch, and look forward to benefiting from the capabilities the site provides, including its applications for enhanced personalization, particularly alongside the CDP. CDP allows us to capture detailed customer data across a variety of systems and provides an understanding of our customer at scale, enabling us to better predict how they will shop with us in the future. With the improved capabilities, we will be able to enhance our marketing and better target and engage with both new and existing customers. we recently ran a small pilot leveraging CDP to target loyal customers who had not engaged with Vince in the past 60 days. Through this campaign, we were able to provide our sales associates with valuable data and the ability to drive sales within a key customer cohort. This is just one small example of how we plan to leverage personalization to enhance the relationship between our store associates and customers. to drive increased frequency and spend over time. In addition, this proprietary first-party data is more efficient from a cost perspective and enables us to interact with our increasingly omnichannel customers and better understand their preferences to create a more personalized dialogue with them as they shop the brand. Turning to international, during Q3, we opened our first pilots during China in late September. While early, we are pleased with the initial response we have seen. South Korea continues to be very strong, and we are especially pleased with the reception of our 20th anniversary pop-up in Seoul, Shinsegae. Also encouraging is our business in the United Kingdom, both in our wholly-owned retail store on Draycut Street, as well as our growing businesses in Harrods, Suffrages, and Harvey Nichols. Finally, with respect to holidays, this year you again see a strong gifting focus in key areas of our assortment. including accessories as well as mis-engagement. In light of the involving competitive and consumer landscape we have observed, we made the strategic decision to pull forward a few key promotional events into October and launched our gifting assortment on the website two weeks earlier as well. While the environment has remained promotional through the start of the holiday season, we are pleased with the demand we are continuing to drive for the Vince brand. As we look ahead, While we expect to continue to navigate a challenging environment, we will remain agile and disciplined while focused on increasing efficiencies across our organization to position Vince for the long-term profitable growth. I want to thank all of our team members for their dedication and hard work as we enter a new chapter for Vince, fully and intently focused on capitalizing on the strength of the Vince brand. With that, I will turn it over to Dave.