looking statements by words such as “anticipate,”s1.q4cdn.com › 115689351 › files ›...

43

Upload: others

Post on 30-May-2020

2 views

Category:

Documents


0 download

TRANSCRIPT

Page 1: looking statements by words such as “anticipate,”s1.q4cdn.com › 115689351 › files › doc_presentations › Vince_ICR...eCommerce Website • Launched in 2008 • Primarily
Page 2: looking statements by words such as “anticipate,”s1.q4cdn.com › 115689351 › files › doc_presentations › Vince_ICR...eCommerce Website • Launched in 2008 • Primarily

This presentation includes forward-looking statements. Forward-looking statements reflect our current views with respect to, among

other things, future events and performance. All statements other than statements of historical facts, including statements regarding

our future operating results and financial position, business strategy, and plans and objectives of management for future operations,

are forward-looking statements. In many cases, you can identify forward-looking statements by words such as “anticipate,”

“contemplate,” “could,” “estimate,” “expect,” “intend,” “project,” “plan,” “potential,” “predict,” “target,” “believe,” “seek,” “continue,”

“outlook,” “may,” “might,” “will,” “should,” “can have,” “likely” or the negative version of these words or comparable words. Forward-

looking statements speak only as of the date on which they are made and are based on beliefs and assumptions made by

management using currently available information. These statements are only predictions and are not guarantees of future

performance, results, actions or events. The issuer expressly disclaims any obligation to update or revise any forward-looking

statement, whether as a result of new information, future events or otherwise.

All written and oral forward-looking statements attributable to the Company, or persons acting on are its behalf, expressly qualified

in their entirety by the cautionary statements in the preliminary prospectus, including, without limit, those described under the

heading “risk factors”, as well as other cautionary statements that are made from time to time in the Company’s public

communications. You should evaluate all forward-looking statements made in this presentation in the context of these risks and

uncertainties.

This presentation contains certain information that has not been derived in accordance with generally accepted accounting

principles (“GAAP”). Reconciliations of such information to the most directly comparable information derived in accordance with

GAAP are contained in this presentation. This information should not be considered a substitute for any measures derived in

accordance with GAAP.

1

Page 3: looking statements by words such as “anticipate,”s1.q4cdn.com › 115689351 › files › doc_presentations › Vince_ICR...eCommerce Website • Launched in 2008 • Primarily

2

Page 4: looking statements by words such as “anticipate,”s1.q4cdn.com › 115689351 › files › doc_presentations › Vince_ICR...eCommerce Website • Launched in 2008 • Primarily
Page 5: looking statements by words such as “anticipate,”s1.q4cdn.com › 115689351 › files › doc_presentations › Vince_ICR...eCommerce Website • Launched in 2008 • Primarily

A Leading Contemporary

Apparel Brand

Everyday Luxury Essentials

Modern Effortless Style

4

Page 6: looking statements by words such as “anticipate,”s1.q4cdn.com › 115689351 › files › doc_presentations › Vince_ICR...eCommerce Website • Launched in 2008 • Primarily

U.S. Retail Stores Global Wholesale Doors Sales Adj. EBITDA (1)

Note: LTM data reflects results for the 12 months ended November 2, 2013. Store count data as of December 31, 2013.

(1) Excludes one-time public company transition costs.

Wholesale

Direct-to-Consumer

Full Price

Outlet

5

% Margin 21% 22%

Page 7: looking statements by words such as “anticipate,”s1.q4cdn.com › 115689351 › files › doc_presentations › Vince_ICR...eCommerce Website • Launched in 2008 • Primarily

6

Page 8: looking statements by words such as “anticipate,”s1.q4cdn.com › 115689351 › files › doc_presentations › Vince_ICR...eCommerce Website • Launched in 2008 • Primarily
Page 9: looking statements by words such as “anticipate,”s1.q4cdn.com › 115689351 › files › doc_presentations › Vince_ICR...eCommerce Website • Launched in 2008 • Primarily

8

Page 10: looking statements by words such as “anticipate,”s1.q4cdn.com › 115689351 › files › doc_presentations › Vince_ICR...eCommerce Website • Launched in 2008 • Primarily

Where We Were Where We Are (1)

(1) Data reflects FY 2012 sales.

2007 2008 2010 2012 / 2013 2002 2005 2006

Gender Women’s Women’s Expansion Men’s Launch Dual Gender Expansion

87%

13%

Women's Men's

Product Knits and

Sweaters Core Expansion

Denim, Leather

and Outerwear

Collections

68%

32%

Tops Other

Channel Wholesale Wholesale Expansion Retail

eCommerce

Multi-Channel

Expansion

85%

15%

Wholesale DTC

Team /

Company

Founded by

Rea Laccone &

Christopher

LaPolice

Kellwood

Acquired by

Sun Capital

Vince

Acquired by

Kellwood

New Management Team

Led by Jill Granoff, Lisa

Klinger and Karin

Gregersen

Geography U.S. International International Expansion in Select Countries

92%

8%

U.S. International

9

Page 11: looking statements by words such as “anticipate,”s1.q4cdn.com › 115689351 › files › doc_presentations › Vince_ICR...eCommerce Website • Launched in 2008 • Primarily

10

Page 12: looking statements by words such as “anticipate,”s1.q4cdn.com › 115689351 › files › doc_presentations › Vince_ICR...eCommerce Website • Launched in 2008 • Primarily

11

Page 13: looking statements by words such as “anticipate,”s1.q4cdn.com › 115689351 › files › doc_presentations › Vince_ICR...eCommerce Website • Launched in 2008 • Primarily

12

Page 14: looking statements by words such as “anticipate,”s1.q4cdn.com › 115689351 › files › doc_presentations › Vince_ICR...eCommerce Website • Launched in 2008 • Primarily

(1) Based on information shared by wholesale partners for 2012 performance.

(2) Door and shop-in-shop count as of December 31, 2013.

1,608 Doors • 11 Shop-in-Shops (2)

13

Page 15: looking statements by words such as “anticipate,”s1.q4cdn.com › 115689351 › files › doc_presentations › Vince_ICR...eCommerce Website • Launched in 2008 • Primarily

International

(1) Door and shop-in-shop count as of December 31, 2013.

40+ Countries • 537 Doors • 9 Shop-in-Shops (1)

14

Page 16: looking statements by words such as “anticipate,”s1.q4cdn.com › 115689351 › files › doc_presentations › Vince_ICR...eCommerce Website • Launched in 2008 • Primarily

Current U.S. Retail Footprint

Full-Price Store

Outlet Store

• First store opened in 2008

• 22 Full Price Stores • 6 Outlets today (1)

• Proven success across street, lifestyle, mall and outlet

locations in many geographies

• Significant white space opportunity

(1) Store count as of December 31, 2013.

15

Page 17: looking statements by words such as “anticipate,”s1.q4cdn.com › 115689351 › files › doc_presentations › Vince_ICR...eCommerce Website • Launched in 2008 • Primarily

15 Quarters of Comparable Store Sales Growth

2010 2011 2012 2013

20%

30%

9%

2%

19%

2%

7%

5%

15%

12%

23%

35% 34%

29%

17%

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3

16

Page 18: looking statements by words such as “anticipate,”s1.q4cdn.com › 115689351 › files › doc_presentations › Vince_ICR...eCommerce Website • Launched in 2008 • Primarily

eCommerce Website

• Launched in 2008

• Primarily U.S. business

• Fastest growing channel today

• Strategy focused on driving increased brand awareness,

customer traffic, and conversion

• Q1 2014 Site Re-Launch

eCommerce Marketing

• eCommerce marketing efforts build brand awareness,

drive traffic and showcase the brand across channels

Online lookbooks

Email promotions

Store opening announcements

• Integrated with social media content

17

Page 19: looking statements by words such as “anticipate,”s1.q4cdn.com › 115689351 › files › doc_presentations › Vince_ICR...eCommerce Website • Launched in 2008 • Primarily

Source: Internal company research, Aug 2012. Total sample size of 2,941.

9%

18%

30%

44%

<$50K $50-$100K

$100-$200K

$200K+

• 25 – 55 – with a sweet spot of 40+

• Metropolitan and fashion savvy

• A successful professional or an active stay-at-home mom

• Confident, understated and always pulled together

• Grounded and family oriented

• Thoughtful; focused on quality and value

• Active and takes care of herself

Effortlessly Cool • Casually Sophisticated

13%

23%

29%

23%

12%

18-29 30-39 40-49 50-59 60+

18

Page 20: looking statements by words such as “anticipate,”s1.q4cdn.com › 115689351 › files › doc_presentations › Vince_ICR...eCommerce Website • Launched in 2008 • Primarily

Source: Internal company research, Aug 2012. Total sample size of 2,941.

16%

23%

31% 31%

<$50K $50-$100K

$100-$200K

$200K+

• 20 – 50 years old – with a sweet spot of 35+

• Successful – working in a creative or professional field

• Confident, metropolitan and masculine

• Witty, sharp and approachable

• Focused on design, quality and comfort

• On-trend but not fashion-forward

• A modern thinking man – interested in improving himself

Pulled Together • Comfortable with his Own Style

32% 33%

21%

10%

4%

18-29 30-39 40-49 50-59 60+

19

Page 21: looking statements by words such as “anticipate,”s1.q4cdn.com › 115689351 › files › doc_presentations › Vince_ICR...eCommerce Website • Launched in 2008 • Primarily

Aided Brand Awareness Brand Affinity Purchase Intent

19%

30%

31%

32%

32%

38%

47%

54%

54%

75%

87%

88%

92%

20%

James Perse

J Brand

Celine

Alice + Olivia

Rag & Bone

Helmut Lang

Theory

Chloe

Tory Burch

DVF

Kors

J.Crew

Ralph Lauren

31%

35%

36%

43%

44%

45%

46%

47%

49%

54%

56%

61%

61%

70%

Helmut Lang

James Perse

Rag & Bone

Chloe

Celine

J Brand

J.Crew

DVF

Tory Burch

Alice + Olivia

Theory

Kors

Ralph Lauren

15%

21%

22%

23%

25%

29%

33%

34%

35%

36%

36%

44%

46%

54%

Helmut Lang

Celine

Chloe

DVF

Rag & Bone

James Perse

J Brand

Alice + Olivia

Theory

J.Crew

Tory Burch

Kors

Ralph Lauren

Source: Research conducted on behalf of Company in October 2012. Total sample size of 500.

20

Page 22: looking statements by words such as “anticipate,”s1.q4cdn.com › 115689351 › files › doc_presentations › Vince_ICR...eCommerce Website • Launched in 2008 • Primarily

To Accelerate Our Evolution

U.S. Wholesale Driven

Women’s Apparel Business

Global Multi-Channel

Dual Gender Lifestyle Brand

21

Page 23: looking statements by words such as “anticipate,”s1.q4cdn.com › 115689351 › files › doc_presentations › Vince_ICR...eCommerce Website • Launched in 2008 • Primarily

Jill Granoff

Chief Executive Officer

Lisa Klinger

Chief Financial Officer

Karin Gregersen

President & Chief Creative

Officer

Michele Sizemore

SVP, Operations

Jill Steinberg

SVP, Wholesale

Beth Cohn

SVP, Retail & eCommerce

Rebecca Damavandi

Group Pres., Global Bus.

Dev.

Nam

e / T

itle

A

dd

itio

na

l E

xp

eri

en

ce

EVP, Chief Financial Officer

Pri

or

Ro

le

Chief Executive Officer

EVP & Managing Director

SVP, Global Sourcing

VP, U.S. Sales

SVP, Retail and

eCommerce

President, Licens. & Global

Bus. Dev.

Yrs

of

Ex

pe

r

25+ 24 19 25 14 22 18

Jay Dubiner

SVP, General Counsel

EVP, General Counsel

23

Deena Gianoncelli

SVP, Human Resources

Director, Human

Resources

18

22

Page 24: looking statements by words such as “anticipate,”s1.q4cdn.com › 115689351 › files › doc_presentations › Vince_ICR...eCommerce Website • Launched in 2008 • Primarily
Page 25: looking statements by words such as “anticipate,”s1.q4cdn.com › 115689351 › files › doc_presentations › Vince_ICR...eCommerce Website • Launched in 2008 • Primarily

Capitalize on New and Existing Product Opportunities

Maximize Wholesale Productivity

Expand Retail Footprint

Accelerate eCommerce Growth

Drive International Expansion

Increase Brand Awareness

1

2

3

4

6

5

24

Page 26: looking statements by words such as “anticipate,”s1.q4cdn.com › 115689351 › files › doc_presentations › Vince_ICR...eCommerce Website • Launched in 2008 • Primarily

1

Vince

Today

Expand

Existing

Categories

Launch New

Categories

Become the

Ultimate Lifestyle

Brand

Dresses

Outerwear

Luxe Loungewear

Denim

Women’s Footwear

Men’s Apparel

Men’s Footwear (Fall ’14)

Childrenswear (Fall ‘14)

Handbags (2015)

Small Leather

Accessories (2015)

Fashion Accessories

Intimates & Sleepwear

Broaden wear occasion

Enhance "Head-to-Toe" offering

"Go to" everyday luxury

essentials brand for men, women

and children

Note: new product category launch dates subject to change.

25

Page 27: looking statements by words such as “anticipate,”s1.q4cdn.com › 115689351 › files › doc_presentations › Vince_ICR...eCommerce Website • Launched in 2008 • Primarily

1

11

9

1

20

TBD

2012 LTM White Space

Key Opportunities Global Shop-in-Shop Opportunity (1)

• Increase penetration in existing doors

Improved space and location

Expanded assortments

Elevated men’s collection

Product “exclusives”

Enhanced marketing and sales support

• Selectively open new doors

• Optimize omni-channel opportunities

U.S.

International

2

(1) LTM shop-in-shop count as of December 31, 2013.

26

Page 28: looking statements by words such as “anticipate,”s1.q4cdn.com › 115689351 › files › doc_presentations › Vince_ICR...eCommerce Website • Launched in 2008 • Primarily

15 17 1922

12

3

6

2010 2011 2012 LTM WhiteSpace

• 100+ U.S. Retail Store Potential (2)

• Targeting 3:1 Full Price to Outlet Ratio

• Potential for new formats and international growth

• Sophisticated site selection process

Comprehensive real estate strategy

High-end streets, lifestyle centers and A+ malls

Target luxury and advanced contemporary

adjacencies

Disciplined financial review to ensure attractive

economics

100+ U.S. White Space Opportunity (1) (2)

Full Price

Outlet

(1) LTM store count as of December 31, 2013.

(2) Based on third-party analyses and internal projections.

3

27

Page 29: looking statements by words such as “anticipate,”s1.q4cdn.com › 115689351 › files › doc_presentations › Vince_ICR...eCommerce Website • Launched in 2008 • Primarily

Website Re-Launch Preview

• Re-launch website in Q1 2014

More compelling

shopping experience to

increase visit frequency

Richer content and

product recommendations

Enhanced photography

Improved functionality

and navigation

• Showcase entire breadth and

depth of the brand

• Ensure digital integration

across social, mobile and the

web

• Build strong online community

4

28

Page 30: looking statements by words such as “anticipate,”s1.q4cdn.com › 115689351 › files › doc_presentations › Vince_ICR...eCommerce Website • Launched in 2008 • Primarily

1

2

• Freestanding stores outside the U.S.

1st store in Tokyo, Japan (licensed)

2nd store in Istanbul, Turkey (licensed)

More stores to come

• Increase wholesale presence

9 international shops today

Accelerate in-store shop-in-shop development

• Establishing a showroom in Paris

Recent Growth Initiatives

UK Canada

South Korea Japan

5

SCANDINAVIA

Mexico Turkey China /

Hong Kong

MIDDLE

EAST BENELUX

Note: Shop-in-shop information as of December 31, 2013.

Tokyo, Japan Store

29

Page 31: looking statements by words such as “anticipate,”s1.q4cdn.com › 115689351 › files › doc_presentations › Vince_ICR...eCommerce Website • Launched in 2008 • Primarily

Print In-Store Events

6

Digital and

Social Media

Neighborhoods Campaign

(Q1 2014 estimated launch)

Madison Ave, Opening Event

Tokyo Opening Event

Co-op Advertising with

Wholesale Partners

Out-of-Home Lookbooks Editorial Coverage

30

Page 32: looking statements by words such as “anticipate,”s1.q4cdn.com › 115689351 › files › doc_presentations › Vince_ICR...eCommerce Website • Launched in 2008 • Primarily

31

Page 33: looking statements by words such as “anticipate,”s1.q4cdn.com › 115689351 › files › doc_presentations › Vince_ICR...eCommerce Website • Launched in 2008 • Primarily
Page 34: looking statements by words such as “anticipate,”s1.q4cdn.com › 115689351 › files › doc_presentations › Vince_ICR...eCommerce Website • Launched in 2008 • Primarily

% Margin 21% 25% 21% 22% 21% 21%

$24

$44 $52

$59

2010 2011 2012 LTM

$35

$43

Q3'12 YTD Q3'13 YTD

% Growth 57% 37% 39% 23% 20%

$111

$175

$240 $273

2010 2011 2012 LTM

$168

$200

Q3'12 YTD Q3'13 YTD

Sales

Adjusted EBITDA (1)

Note: LTM financial data as of Q3 2013.

(1) Excludes one-time public company transition costs.

33

Page 35: looking statements by words such as “anticipate,”s1.q4cdn.com › 115689351 › files › doc_presentations › Vince_ICR...eCommerce Website • Launched in 2008 • Primarily

% Growth 49% 60% 73% 50% 70%

% of Total 14% 13% 15% 20% 14% 20%

$16 $23

$37

$54

2010 2011 2012 LTM

$24

$41

Q3'12 YTD Q3'13 YTD

% Growth 59% 34% 19% 29% 11%

% of Total 86% 87% 85% 80% 86% 80%

$96

$152

$203 $219

2010 2011 2012 LTM

$144 $160

Q3'12 YTD Q3'13 YTD

Note: LTM financial data as of Q3 2013.

Wholesale

Sales

Direct-to-

Consumer

Sales

Retail

Comparable

Store Sales

9.3% 7.6%

23.1% 27.2%

2010 2011 2012 LTM

24.7%

18.0%

Q3'12 YTD Q3'13 YTD

34

Page 36: looking statements by words such as “anticipate,”s1.q4cdn.com › 115689351 › files › doc_presentations › Vince_ICR...eCommerce Website • Launched in 2008 • Primarily

% Margin 50% 49% 45% 47% 45% 46%

$56

$86

$108

$126

2010 2011 2012 LTM

$76

$93

Q3'12 YTD Q3'13 YTD

% of Sales 29% 24% 24% 25% 24% 25%

$32

$42

$57

$66

2010 2011 2012 LTM

$40

$50

Q3'12 YTD Q3'13 YTD

Note: LTM financial data as of Q3 2013.

(1) Excludes one-time public company transition costs.

Gross Profit

Adjusted SG&A (1)

• Expansion Opportunities

Increased penetration of direct to consumer

Enhanced supply chain process

Sourcing optimization

Pricing optimization

• Increased SG&A expense to operate as a

stand alone company did not result in

deleverage

• However, we expect slight deleverage

near-term as we invest in our growth

Increased marketing spend to build brand

awareness

Direct-to-consumer business

Incremental on-going public company costs

35

Page 37: looking statements by words such as “anticipate,”s1.q4cdn.com › 115689351 › files › doc_presentations › Vince_ICR...eCommerce Website • Launched in 2008 • Primarily

• IPO proceeds and cash from new term

loan used to repay the Kellwood Note

Receivable

• $50 million ABL facility undrawn

following IPO transaction

• Company does not foresee need to

utilize the revolving credit facility in

near-term other than for LCs

Pro Forma Capitalization

Note: LTM financial data as of Q3 2013.

(1) Excludes one-time public company transition costs.

Pro-Forma

Post-IPO

Cash and Cash Equivalents $5

Long Term Debt $175

Total Debt $175

Net Debt $170

Q3 2013 LTM Adjusted EBITDA (1) $59

Leverage Metrics

Total Debt / Adj. EBITDA 3.0x

Net Debt / Adj. EBITDA 2.9x

36

Page 38: looking statements by words such as “anticipate,”s1.q4cdn.com › 115689351 › files › doc_presentations › Vince_ICR...eCommerce Website • Launched in 2008 • Primarily

Significant White Space Opportunity to Grow Footprint with an 100+ U.S. Retail Store Potential

Targeted New Store Economics

Full Price Outlet

Current 21 6

Long Term U.S. Potential 75+ 25+

Gross Square Footage ~2,000 - 3,000 ~ 2,000

First Year Sales ~$1.5M - $2.5M ~$1.5M - $2.0M

Year 1 4-Wall Cash Flow Contribution ~20% - 25% ~15% - 20%

Year 3 4-Wall Cash Flow Contribution ~25% - 30% ~20% - 25%

Net Investment (1) ~$0.8M - $1.1M ~$0.4M - $0.7M

Payback ~2 - 3 Years ~2 - 3 YearsROI

Financials

Stores

Note: LTM store count as of December 31, 2013.

(1) Includes build-out costs and initial inventory, net of payables.

Full Price

Outlet

15 17 19 22

75

12

36

25

1619

22

28

100+

2010 2011 2012 LTM White Space

37

Page 39: looking statements by words such as “anticipate,”s1.q4cdn.com › 115689351 › files › doc_presentations › Vince_ICR...eCommerce Website • Launched in 2008 • Primarily

(1) Excludes one-time public company transition costs.

• Strong top line performance

continued in Q3 2013

• Gross Margin expansion of 300

basis points

• SG&A expense investment

reflects

Management team for

stand-alone company

New store costs

Increased marketing

expense

• Strong operating margin of 24%

achieved

($ in mm) Q3 2012 Q3 2013 YoY Variance

Total Net Sales $77.0 $85.8 11.4%

Retail Store Count 20 27 7

Retail Comparable Store Sales 23.4% 16.5%

Gross Profit $35.1 $41.7 18.8%

% Margin 46% 49% 300 bps

Adjusted SG&A (1) $15.3 $20.4 33.6%

% of Sales 20% 24%

Adj. Income from Operations (1) $19.3 $20.6 7.0%

% of Sales 25% 24%

Adjusted EBITDA (1) $19.9 $21.3 7.5%

% of Sales 26% 25%

38

Page 40: looking statements by words such as “anticipate,”s1.q4cdn.com › 115689351 › files › doc_presentations › Vince_ICR...eCommerce Website • Launched in 2008 • Primarily

Total Net Sales Growth 15% - 20%

Net Income Growth 20% - 25%

39

Page 41: looking statements by words such as “anticipate,”s1.q4cdn.com › 115689351 › files › doc_presentations › Vince_ICR...eCommerce Website • Launched in 2008 • Primarily

40

Page 42: looking statements by words such as “anticipate,”s1.q4cdn.com › 115689351 › files › doc_presentations › Vince_ICR...eCommerce Website • Launched in 2008 • Primarily
Page 43: looking statements by words such as “anticipate,”s1.q4cdn.com › 115689351 › files › doc_presentations › Vince_ICR...eCommerce Website • Launched in 2008 • Primarily

Note: Q3 YTD 2012 and Q3 YTD 2013 financials represent unaudited financial metrics.

(1) Represents interest costs and amortization of debt issuance costs on certain Kellwood Company indebtness.

(2) Includes one-time charges related to transition payments to founders and IPO expenses as well as ongoing public company costs. These charges

were excluded from adjusted EBITDA due to their non-recurring nature and ability to impact comparability to other periods.

Fiscal Year Q3 YTD

($ in mm) 2010 2011 2012 Q3'12 YTD Q3'13 YTD

Net Income (loss) $9.1 $16.7 $10.3 $6.7 $8.8

Interest expense1 7.2 15.0 22.9 16.7 19.3

Provision for income taxes 5.9 10.8 7.0 4.5 5.7

D&A 1.5 1.7 2.0 1.5 1.8

EBITDA $23.6 $44.2 $42.2 $29.5 $35.6

Public company transition costs2 - - 9.3 5.6 7.2

Adjusted EBITDA $23.6 $44.2 $51.5 $35.1 $42.8

42