Vince Holding Corp.

Thank you all for joining today. I would like to welcome you all to the Vince Q4 2022 earnings conference call. My name is Brica and I'll be your operator for today's call. At this time, all participants are in a listen only mode. And I would now like to turn the conference over to your host, Caitlin Churchill, Investor Relations to begin. So Caitlin, please proceed when you're ready.

Thank you and good morning, everyone. Welcome to VIMS Holding Corp's fourth quarter and full year fiscal 2022 results conference call. Hosting the call today are Jack Schweifel, Chief Executive Officer, and Amy Levy, 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 will turn the call over to Jack.

Thank you, Caitlin, and thank you, everyone, for joining us on today's call. As you saw in our press release this morning, we are excited to announce a transformative strategic partnership with Authentic Brands Group or Authentic, which we believe will position Vince for its next chapter. Before I review details of the partnership, let me touch on our fourth quarter and full year fiscal 2022 results we released in conjunction with this morning's announcement. For the full year, we delivered double digit sales growth across our wholesale and direct to consumer segments for VINs culminating in a net sales growth of over 12 percent compared to the prior year. That said, given the macro-related headwinds faced, we delivered loss from operations for the VINs brand, including unallocated corporate expenses of $4.2 million for the year. Included in these results was a challenging fourth quarter performance driven primarily by our wholesale segment while we saw growth in our direct-to-consumer segment sales. Our direct-to-consumer performance was driven by our store channel, which more than offset a decline in our e-commerce business, which continued to be impacted by software traffic trends. Similar to others across retail, the quarter was also impacted by an increased promotional activity. Despite these headwinds, I am pleased with the continued resiliency and dedication of our teams as we continue to focus on our strategic objectives, substantially completed the wind-down of the Rebecca Taylor business, and end of the year in a healthier inventory position. As I will discuss today through our actions we took in fiscal 2022 and with the transaction we announced today, we believe we are well positioned to focus on our growth initiatives and deliver long-term success. Turning now on more on our new partnership with Authentic. As detailed in today's press release and SEC filings, As part of this arrangement, Vince will contribute its intellectual property to Authentic's newly formed subsidy, ABG Vince, and in return will receive $76.5 million in cash from Authentic and a 25% membership interest in ABG Vince. In addition, in connection with this transaction, we will enter into an exclusive 10-year license agreement with eight 10-year renewal options to continue to operate the business substantially in the same manner as we do today through our wholesale, retail, and e-commerce channels. We expect the transition to close within the second quarter of the calendar 2023, and we will use the proceeds to strengthen our balance sheet. Looking ahead, we believe this partnership is not only transformative for our business, but an important step in capitalizing on the potential for the Vince brand with a highly experienced and equally committed partner. Let me now turn the discussion over to Amy, who will review our fourth quarter financial results, as well as more details of the transaction and its impact on our financial model going forward.