Vince Holding Corp. Files Q3 10-Q

TL;DR

Vince Holding Corp. filed its 10-Q for Nov 2, 2024. Financials and credit agreements detailed.

AI Summary

Vince Holding Corp. filed its 10-Q for the period ending November 2, 2024. The filing details financial performance and operational updates. Key financial instruments and agreements, such as the "Vince Two Thousand Thirteen Incentive Plan" and various credit facilities, are referenced, indicating ongoing financial management and strategic planning.

Why It Matters

This filing provides insight into Vince Holding Corp.'s financial health and operational status, which can influence investor decisions and market perception of the company.

Risk Assessment

Risk Level: medium — The filing references various credit agreements and financial instruments, suggesting potential financial leverage and associated risks.

Key Players & Entities

• VINCE HOLDING CORP. (company) — Filer
• 20241102 (date) — Period of Report
• 500 FIFTH AVENUE (location) — Business Address
• 212-515-2600 (phone_number) — Business Phone
• Apparel Holding Corp. (company) — Former Company Name
• Kellwood Holding Corp. (company) — Former Company Name
• Vince Two Thousand Thirteen Incentive Plan (financial_instrument) — Incentive Plan
• SunCapital Consulting Agreement (agreement) — Consulting Agreement
• Third Lien Credit Agreement (financial_instrument) — Credit Agreement
• Two Thousand Twenty Three Revolving Credit Facility (financial_instrument) — Credit Facility

FAQ

Key Financial Figures

• $0.01 — nge on which registered Common Stock, $0.01 par value per share VNCE New York S
• $1.00 — a nominal sale (the "Transaction") for $1.00 (one dollar) of all outstanding shares

Filing Documents

• vnce-20241102.htm (10-Q) — 2125KB
• vnce-ex31_1.htm (EX-31.1) — 10KB
• vnce-ex31_2.htm (EX-31.2) — 10KB
• vnce-ex32_1.htm (EX-32.1) — 8KB
• vnce-ex32_2.htm (EX-32.2) — 7KB
• 0000950170-24-135830.txt ( ) — 7690KB
• vnce-20241102.xsd (EX-101.SCH) — 1166KB
• vnce-20241102_htm.xml (XML) — 1105KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION Item 1. Condensed Consolidated Financial Statements: 4 a) Unaudited Condensed Consolidated Balance Sheets at November 2, 2024 and February 3, 2024 4 b) Unaudited Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) for the three and nine months ended November 2, 2024 and October 28, 2023 5 c) Unaudited Condensed Consolidated Statements of Stockholders' Equity for the three and nine months ended November 2, 2024 and October 28, 2023 6 d) Unaudited Condensed Consolidated Statements of Cash Flows for the nine months ended November 2, 2024 and October 28, 2023 8 e) Notes to Unaudited Condensed Consolidated Financial Statements 9 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 24 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 35 Item 4.

Controls and Procedures

Controls and Procedures 35

OTHER INFORMATION

PART II. OTHER INFORMATION 36 Item 1.

Legal Proceedings

Legal Proceedings 36 Item 1A.

Risk Factors

Risk Factors 36 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 36 Item 3. Defaults Upon Senior Securities 36 Item 4. Mine Safety Disclosures 36 Item 5. Other Information 36 Item 6. Exhibits 37 INTRODUCTORY NOTE On November 27, 2013, Vince Holding Corp. ("VHC" or the "Company"), previously known as Apparel Holding Corp., closed an initial public offering ("IPO") of its common stock and completed a series of restructuring transactions (the "Restructuring Transactions") through which Kellwood Holding, LLC acquired the non-Vince businesses, which included Kellwood Company, LLC, from the Company. The Company continues to own and operate the Vince business, which includes V Opco, LLC (formerly, Vince, LLC) ("V Opco"). Prior to the IPO and the Restructuring Transactions, VHC was a diversified apparel company operating a broad portfolio of fashion brands, which included the Vince business. As a result of the IPO and Restructuring Transactions, the non-Vince businesses were separated from the Vince business, and the stockholders immediately prior to the consummation of the Restructuring Transactions (the "Pre-IPO Stockholders") (through their ownership of Kellwood Holding, LLC) retained the full ownership and control of the non-Vince businesses. On April 21, 2023, V Opco, the Company's wholly owned indirect subsidiary, entered into an Intellectual Property Asset Purchase Agreement (the "Asset Purchase Agreement"), by and among V Opco, ABG-Vince, LLC (f/k/a ABG-Viking, LLC) ("ABG Vince"), a newly formed indirect subsidiary of Authentic Brands Group, LLC, the Company and ABG Intermediate Holdings 2 LLC, whereby V Opco sold its intellectual property assets related to the business operated under the Vince brand to ABG Vince at closing (the "Asset Sale"). The Company closed the Asset Sale on May 25, 2023. On May 3, 2024, V Opco completed a nominal sale (the "Transaction") for $1.00 (one dollar) of all outstanding shar

FINANCIA L INFORMATION

PART I. FINANCIA L INFORMATION

CONDENSED CONSOLIDA TED FINANCIAL STATEMENTS

ITEM 1. CONDENSED CONSOLIDA TED FINANCIAL STATEMENTS VINCE HOLDING CORP. AND SUBSIDIARIES Condensed Consolidat ed Balance Sheets (in thousands, except share and per share data, unaudited) November 2, February 3, 2024 2024 Assets Current assets: Cash and cash equivalents $ 892 $ 357 Trade receivables, net of allowance for doubtful accounts of $ 291 and $ 377 at November 2, 2024 and February 3, 2024, respectively 29,445 20,671 Inventories, net 63,775 58,777 Prepaid expenses and other current assets 6,374 4,997 Total current assets 100,486 84,802 Property and equipment, net 6,784 6,972 Operating lease right-of-use assets, net 89,067 73,003 Goodwill 31,973 31,973 Equity method investment 23,554 26,147 Other assets 2,840 2,252 Total assets $ 254,704 $ 225,149 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 27,024 $ 31,678 Accrued salaries and employee benefits 6,667 3,967 Other accrued expenses 1 9,830 8,980 Short-term lease liabilities 14,174 16,803 Total current liabilities 57,695 61,428 Long-term debt 2 50,600 43,950 Long-term lease liabilities 85,275 67,705 Deferred income tax liability 3,567 4,913 Other liabilities 463 — Commitments and contingencies (Note 10) Stockholders' equity: Common stock at $ 0.01 par value ( 100,000,000 shares authorized, 12,609,630 and 12,506,556 shares issued and outstanding at November 2, 2024 and February 3, 2024, respectively) 126 125 Additional paid-in capital 1,145,261 1,144,740 Accumulated deficit ( 1,088,336 ) ( 1,097,634 ) Accumulated other comprehensive income (loss) 53 ( 78 ) Total stockholders' equity 57,104 47,153 Total liabilities and stockholders' equity $ 254,704 $ 225,149 1 Includes accrued royalty expense of $ 432 as of November 2, 2024 and $ 361 as of February 3, 2024, which is with a relate

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