Vince Holding Corp.

Good morning all, good afternoon all, and welcome to the Vince Q3 2025 Earnings Conference Call. My name is Adam and I'll be your operator today. If you'd like to ask a question during the Q&A portion of today's call, reduce or by pressing star followed by one on your telephone keypad. I will now hand the floor to Akiko Okuma to begin, so please go ahead when you're ready.

Thank you and good afternoon everyone. Welcome to Vince Holding Corp third quarter fiscal 2025 results conference call. Hosting the call today is Brendan Hoffman, Chief Executive Officer, and Yuji Okamura, 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. In addition, in today's discussion, the company is presenting its financial results in conformity with GAAP and on an adjusted basis. The adjusted results that the company presents today are non-GAAP measures. Discussions of these non-GAAP measures and information on reconciliations with them to their most comparable gap measures are included in today's press release and related schedules, which are available in the investor section of the company's website at investors.vince.com. Now I'll turn the call over to Brendan.

Thank you, Akiko, and good morning, everyone. We are extremely proud of our third quarter performance as we drove healthy sales growth across all channels and exceeded our expectations for both top and bottom line. Our assortments are resonating across both our women's and men's businesses, but most encouraging is the acceptance we have seen to the strategic price increases implemented this quarter, as well as in the momentum in our DTC segment, given the enhancements we have made to the customer experience. In our women's assortment, which has the highest impact from tariffs, prices increased more than our overall average increase of approximately 6%, but units were nearly flat to last year, validating the quality and value of our product in the marketplace. Beyond the pricing actions, our teams have done an exceptional job in continuing to manage the evolving tariff environment. Our goods are flowing smoothly despite significant changes in sourcing, and importantly, we've maintained our quality standards throughout this transition. With respect to customer experience, following the store renovations from earlier this year, we enhanced our e-commerce site in Q3 with a strategic site refresh, increased marketing support, and the launch of Drop Ship. Our e-commerce site refresh elevated the customer experience with more modern, creative elements and enhanced site merchandise. We are now using AI-generated video content to enrich product detail pages and introduce more service elements, like our cashmere care guide. This investment in our digital platform contributed meaningfully to our strong performance, and we're seeing the benefits flow through in both conversion rates and average order values. Our e-commerce site also significantly benefited from the marketing investments we made in mid-funnel marketing this quarter. Through this work, we drove triple-digit growth in site traffic late in the quarter and supported full-price new customer acquisition as well. And at the end of the quarter, we went live with a new dropship strategy, which we believe will be a significant growth opportunity for us moving forward. In the first month since launch, we have seen significant increase in volume. Our initial launch focused only on shoes, but we have plans to expand to other categories, capitalizing on our partnership with authentic brands and the category expansion opportunities that provides. The dropship strategy allows us to not only offer more fashion-forward products that we might typically feel comfortable procuring directly, but enables us to showcase a more diverse assortment to our customer, providing learnings on customer preferences that we may incorporate into our store channel as well. In addition to these initiatives, we opened two new stores this quarter in Nashville and Sacramento, following our successful store opening in Marleybone, London, earlier this year, which continues to exceed our expectations. Moving to our wholesale business, we delivered solid growth versus last year, with some of this reflecting the timing benefits from the Q2 shipment delays that we discussed previously, as well as ongoing performance of key partners. We were excited to recently celebrate our 2025 holiday collection, along with our continued partnership with Nordstrom, with an immersive experience in LA with Nordstrom's top clientele, Nordstrom's VP fashion director, and our creative director, Caroline Bellhumer. It was a great event to kick off the holiday season and highlight our holiday campaign, which celebrates our brand spirit and showcases connections through stories and gift giving with a 360 degree omnichannel strategy. Thus far, we have seen a very strong start to the holiday quarter, including record sales across the Black Friday and Cyber Monday weekend in our direct-to-consumer business. Given the strength of Q3 and the momentum we are continuing to drive, I am more confident than ever in the trajectory ahead for Vince Holding Corp and the prospects we have to leverage our platform further to drive growth. We continue to successfully navigate the tariff challenges while maintaining the quality and brand integrity we are known for. We are beginning to reinvest in the business, particularly in marketing initiatives that we have pulled back on earlier in the year, and we're seeing positive returns on these investments. The underlying fundamentals of our business remain strong. We're operating with disciplined execution while positioning for growth. With that strong foundation and the momentum we're building, I'll now turn it over to you to discuss our financial results in more detail and provide our updated outlook.