VINCE HOLDING CORP
For the period ended Nov 2, 2024. Filed Dec 12, 2024.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Nov 2, 2024 · Filed Dec 12, 2024
VNCE$12.68+0.5%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-08-03; filed 2024-09-17.
0000950170-24-107021
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-11-02; filed 2024-12-12.
0000950170-24-135830
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 124 previous paragraphs and 122 current paragraphs.
64 unchanged; 49 reworded; 7 added; 5 removed; 6 previous and 2 current paragraphs rearranged.
Tables are not compared: 12 previous and 12 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (7)
Current report
$313 of decreased rent and occupancy costs; and
Current report
$248 decrease in total SG&A expenses resulting from transaction-related expenses associated with the Authentic Transaction in fiscal 2023; partially offset by
Current report
The provision for income taxes was $509 for the three months ended October 28, 2023, which resulted primarily from discrete tax expense associated with the Authentic Transaction.
Current report
Net sales from our Vince Wholesale segment decreased $1,075, or 2.2%, to $48,765 in the three months ended November 2, 2024 from $49,840 in the three months ended October 28, 2023, due primarily to lower international shipments, partially offset by increases in off-price shipments.
Current report
Our Vince Direct-to-consumer segment had income from operations of $614 in the three months ended November 2, 2024 compared to a loss from operations of $48 in the three months ended October 28, 2023. The change was primarily driven by an increase in gross margin and lower operating costs driven by labor efficiencies.
Current report
Nine Months Ended November 2, 2024 Compared to Nine Months Ended October 28, 2023
Current report
In accordance with Financial Accounting Standards Board ASC Topic 350, "Intangibles-Goodwill and Other", goodwill is tested for impairment at least annually and in an interim period if a triggering event occurs. In the fourth quarter of fiscal 2023, the date of the Company’s last annual impairment test, the Company’s Vince Wholesale reporting unit exceeded its carrying value by 7.9%. Determining the fair value of goodwill is judgmental in nature and requires the use of significant estimates and assumptions. Actual future results may differ from those estimates. Any changes in fair value could potentially result in the carrying amount of the Company’s Vince Wholesale reporting unit exceeding its estimated fair value, and therefore could require an impairment loss. There can be no assurances that the Company will not be required to record further charges in its financial statements, which would negatively impact the Company’s results of operations during the period in which any impairment of our goodwill is determined.
Removed paragraphs (5)
Previous report
The unfavorable impact from royalty expense associated with the License Agreement with ABG Vince contributed negatively by approximately 180 basis points.
Previous report
The benefit for income taxes was $592 for the three months ended July 29, 2023 which is due to applying the Company’s estimated effective tax rate for the fiscal year to the three months (loss) income before income taxes and equity in net income (loss) of equity method investment, excluding discrete items. Discrete items for the second quarter included the $32,043 Vince IP Sale Gain and $2,041 in transaction expenses related to the transaction with Authentic Brands Group. Tax expense associated with these discrete items is not material as the Company has substantial net operating losses, both at the federal and state levels, for which a full valuation allowance is maintained against these deferred tax assets.
Previous report
Net sales from our Vince Wholesale segment increased $10,777, or 29.6%, to $47,184 in the three months ended August 3, 2024 from $36,407 in the three months ended July 29, 2023, due to both higher full-price and off-price shipments.
Previous report
Our Vince Direct-to-consumer segment had a loss from operations of $1,398 in the three months ended August 3, 2024 compared to income from operations of $1,098 in the three months ended July 29, 2023. The change was primarily driven by a decrease in sales. The prior comparative quarter also included lease modifications that partially offset rent expense. The loss from operations in the current quarter was partially offset by an improved gross margin that was unfavorably impacted by royalty expenses associated with the License Agreement with ABG Vince.
Previous report
Six Months Ended August 3, 2024 Compared to Six Months Ended July 29, 2023
Reworded paragraphs (49)
Previous wording
Net sales for the three months ended August 3, 2024 were $74,169, increasing $4,722, or 6.8%, versus $69,447 for the three months ended July 29, 2023.
Current wording
Net sales for the three months ended November 2, 2024 were $80,162, decreasing $3,914, or 4.7%, versus $84,076 for the three months ended October 28, 2023.
Previous wording
Gross profit increased 8.6% to $35,131 for the three months ended August 3, 2024 from $32,348 in the prior year second quarter. As a percentage of sales, gross margin was 47.4%, compared with 46.6% in the prior year second quarter. The total gross margin rate increase was primarily driven by the following factors:
Current wording
Gross profit increased 7.7% to $40,058 for the three months ended November 2, 2024 from $37,185 in the prior year third quarter. As a percentage of sales, gross margin was 50.0%, compared with 44.2% in the prior year third quarter. The total gross margin rate increase was primarily driven by the following factors:
Previous wording
The favorable impact from lower product costing, freight costs, and higher pricing which contributed positively by approximately 410 basis points;
Current wording
The favorable impact from lower product costing, higher pricing, and lower freight costs which contributed positively by approximately 480 basis points;
Previous wording
The unfavorable impact of channel mix contributed negatively by approximately 220 basis points; and
Current wording
The unfavorable impact of channel mix of approximately 50 basis points.
Previous wording
Selling, general and administrative ("SG&A") expenses for the three months ended August 3, 2024 were $34,001, increasing $2,460, or 7.8%, versus $31,541 for the three months ended July 29, 2023. SG&A expenses as a percentage of sales were 45.8% and 45.4% for the three months ended August 3, 2024 and July 29, 2023, respectively. The change in SG&A expenses compared to the prior fiscal year period was primarily due to:
Current wording
Selling, general and administrative ("SG&A") expenses for the three months ended November 2, 2024 were $34,297, decreasing $59, or 0.2%, versus $34,356 for the three months ended October 28, 2023. SG&A expenses as a percentage of sales were 42.8% and 40.9% for the three months ended November 2, 2024 and October 28, 2023, respectively. The change in SG&A expenses compared to the prior fiscal year period was primarily due to:
Previous wording
$481 of increased marketing and advertising expenses due primarily to lower spend in the prior comparable period; partly offset by
Current wording
$517 of decreased marketing and advertising expenses due primarily to lower spend in the current period;
Previous wording
$2,364 of increased compensation and benefits due primarily to higher severance and bonuses; and
Current wording
$810 of increased compensation and benefits due primarily to higher severance costs and bonuses.
Previous wording
Benefit for income taxes for the three months ended August 3, 2024 was $794, due to the reversal of the $794 ordinary tax expense recorded during the first quarter of fiscal 2024 as the Company has year-to-date ordinary pre-tax losses for the interim period and is anticipating annual ordinary pre-tax income for the fiscal year. The Company has determined that it is more likely than not that the tax benefit of the year-to-date ordinary pre-tax loss will not be realized in the current or future years and as such, tax provisions for the interim periods should not be recognized until the Company has year-to-date ordinary pre-tax income.
Current wording
Provision (benefit) for income taxes for the three months ended November 2, 2024 was $0, as the Company has year-to-date ordinary pre-tax losses for the interim period and is anticipating annual ordinary pre-tax income for the fiscal year. The Company has determined that it is more likely than not that the tax benefit of the year-to-date ordinary pre-tax loss will not be realized in the current or future years. As such, the Company did not record any tax expense for the three months ended November 2, 2024, as tax provisions for the interim periods should not be recognized until the Company has year-to-date ordinary pre-tax income.
Previous wording
Equity in net income (loss) of equity method investment for the three months ended August 3, 2024 and July 29, 2023 was $292 and $207, respectively, and was related to the Company's 25% membership interest in ABG Vince.
Current wording
Equity in net income of equity method investment for the three months ended November 2, 2024 and October 28, 2023 was $279 and $656, respectively, and was related to the Company's 25% membership interest in ABG Vince.
Previous wording
Income from operations from our Vince Wholesale segment increased $5,303, or 46.7%, to $16,663 in the three months ended August 3, 2024 from $11,360 in the three months ended July 29, 2023, primarily driven by increased net sales and improved gross margin, partially offset by royalty expense associated with the License Agreement with ABG Vince.
Current wording
Income from operations from our Vince Wholesale segment increased $3,056, or 20.1%, to $18,223 in the three months ended November 2, 2024 from $15,167 in the three months ended October 28, 2023, primarily driven by improved gross margin.
Previous wording
Net sales from our Vince Direct-to-consumer segment decreased $8,539, or 13.3%, to $55,899 in the six months ended August 3, 2024 from $64,438 in the six months ended July 29, 2023. Comparable sales decreased $5,022, or 8.7%, including e-commerce, primarily due to a decrease in e-commerce volume. Non-comparable sales, including Vince Unfold, declined $3,517. Since July 29, 2023, one net store has closed bringing our total retail store count to 61 (consisting of 47 full price stores and 14 outlet stores) as of August 3, 2024, compared to 66 (consisting of 49 full price stores and 17 outlet stores) as of July 29, 2023.
Current wording
Net sales from our Vince Direct-to-consumer segment decreased $2,839, or 8.3%, to $31,397 in the three months ended November 2, 2024 from $34,236 in the three months ended October 28, 2023. Comparable sales, including e-commerce, decreased $888, or 2.9%, driven primarily by a decrease in retail stores traffic. Non-comparable sales, including Vince Unfold, declined $1,951. Since October 28, 2023, five net stores have closed bringing our total retail store count to 61 (consisting of 47 full price stores and 14 outlet stores) as of November 2, 2024, compared to 66 (consisting of 49 full price stores and 17 outlet stores) as of October 28, 2023.
Previous wording
Net sales from our Rebecca Taylor and Parker segment decreased $110, or 100.0%, to $0 in the three months ended August 3, 2024 from $110 in the three months ended July 29, 2023, as a result of the wind down of the Rebecca Taylor and Parker businesses.
Current wording
As a result of the wind down of the Rebecca Taylor and Parker businesses, there were no net sales from our Rebecca Taylor and Parker segment for the three months ended November 2, 2024 and October 28, 2023.
Previous wording
Our Rebecca Taylor and Parker segment had income from operations of $0 in the three months ended August 3, 2024 compared to income from operations of $1,257 in the three months ended July 29, 2023. The change was primarily driven by the wind down and sale of the Rebecca Taylor business. In addition, income from operations for the three months ended July 29, 2023 includes a net benefit of $1,126 from the wind down of the Rebecca Taylor business, primarily related to the release of operating lease liabilities as a result of lease terminations.
Current wording
Our Rebecca Taylor and Parker segment had no income from operations in the three months ended November 2, 2024 compared to a loss from operations of $6 in the three months ended October 28, 2023. The change was driven by the wind down and sale of the Rebecca Taylor business.
Previous wording
Net sales for the six months ended August 3, 2024 were $133,340, decreasing $163, or 0.1%, versus $133,503 for the six months ended July 29, 2023.
Current wording
Net sales for the nine months ended November 2, 2024 were $213,502, decreasing $4,077, or 1.9%, versus $217,579 for the nine months ended October 28, 2023.
Previous wording
Gross profit increased 5.0% to $65,044 for the six months ended August 3, 2024 from $61,940 in the six months ended July 29, 2023. As a percentage of sales, gross margin was 48.8%, compared with 46.4% in the six months ended July 29, 2023. The total gross margin rate increase was primarily driven by the following factors:
Current wording
Gross profit increased 6.0% to $105,102 for the nine months ended November 2, 2024 from $99,125 in the nine months ended October 28, 2023. As a percentage of sales, gross margin was 49.2%, compared with 45.6% in the nine months ended October 28, 2023. The total gross margin rate increase was primarily driven by the following factors:
Previous wording
The favorable impact from lower promotional activity in the Direct-to-consumer segment and lower discounting, which contributed approximately 320 basis points; partly offset by
Current wording
The favorable impact from lower promotional activity in the Direct-to-consumer segment and lower discounting, which contributed positively by approximately 340 basis points;
Previous wording
The favorable impact from lower product costing, freight costs, and higher pricing which contributed positively by approximately 510 basis points; partly offset by
Current wording
The favorable impact from lower product costing and freight costs, and higher pricing, which contributed positively by approximately 340 basis points; partially offset by
Previous wording
The unfavorable impact from royalty expense associated with the License Agreement with ABG Vince contributed negatively by approximately 310 basis points; and
Current wording
The unfavorable impact from royalty expense associated with the License Agreement with ABG Vince, which contributed negatively by approximately 200 basis points; and
Previous wording
The unfavorable impact of channel and product mix contributed negatively by approximately 110 basis points.
Current wording
The unfavorable impact of channel and product mix, which contributed negatively by approximately 80 basis points.
Previous wording
Gain on sale of intangible assets for the six months ended July 29, 2023 was $32,808, of which $32,043 is related to the sale of the Vince intellectual property and certain related ancillary assets and $765 is related to the sale of the Parker intellectual property and certain ancillary assets. See Note 2 "Recent Transactions" to the Condensed Consolidated Financial Statements in this Quarterly Report for further information.
Current wording
Gain on sale of intangible assets for the nine months ended October 28, 2023 was $32,808, of which $32,043 is related to the sale of the Vince intellectual property and certain related ancillary assets and $765 is related to the sale of the Parker intellectual property and certain ancillary assets. See Note 2 "Recent Transactions" to the Condensed Consolidated Financial Statements in this Quarterly Report for further information.
Previous wording
Gain on sale of subsidiaryfor the six months ended August 3, 2024 was $7,634 related to the sale of Rebecca Taylor. See Note 2 "Recent Transactions" to the Condensed Consolidated Financial Statements in this Quarterly Report for further information.
Current wording
Gain on sale of subsidiaryfor the nine months ended November 2, 2024 was $7,634 related to the sale of Rebecca Taylor. See Note 2 "Recent Transactions" to the Condensed Consolidated Financial Statements in this Quarterly Report for further information.
Previous wording
SG&A expenses for the six months ended August 3, 2024 were $65,944, increasing $1,670, or 2.6%, versus $64,274 for the six months ended July 29, 2023. SG&A expenses as a percentage of sales were 49.5% and 48.1% for the six months ended August 3, 2024 and July 29, 2023, respectively. The change in SG&A expenses compared to the prior fiscal year period was primarily due to:
Current wording
SG&A expenses for the nine months ended November 2, 2024 were $100,241, increasing $1,611, or 1.6%, versus $98,630 for the nine months ended October 28, 2023. SG&A expenses as a percentage of sales were 47.0% and 45.3% for the nine months ended November 2, 2024 and October 28, 2023, respectively. The change in SG&A expenses compared to the prior fiscal year period was primarily due to:
Previous wording
$2,058 increase in rent and occupancy primarily due to lease modifications effective in the second quarter of fiscal 2023;
Current wording
$3,682 increase in rent and occupancy primarily due to lease modifications effective in the second quarter of fiscal 2023;
Previous wording
$1,780 of increased compensation and benefits due primarily to higher severance and bonuses; and
Current wording
$3,173 of increased compensation and benefits due primarily to higher severance and bonuses; and
Previous wording
$827 of increased marketing and advertising costs; partly offset by
Current wording
$310 of increased marketing and advertising costs; partially offset by
Previous wording
$2,041 decrease due to transaction-related expenses associated with the Asset Sale in fiscal 2023; and
Current wording
$5,030 decrease due to transaction-related expenses associated with the Asset Sale in fiscal 2023; and
Previous wording
$238 decrease in total SG&A expenses resulting from the wind down of the Rebecca Taylor brand.
Current wording
$504 decrease in total SG&A expenses resulting from the wind down of the Rebecca Taylor brand.
Previous wording
Interest expense, net decreased $4,134, or 55.7%, to $3,293 in the six months ended August 3, 2024 from $7,427 in the six months ended July 29, 2023 primarily due to a $1,755 write-off of deferred financing costs and a $553 prepayment penalty both associated with the termination of the Term Loan Credit Facility, as well as an $828 write-off of deferred financing costs associated with the termination of the 2018 Revolving Credit Facility, incurred in the prior comparative quarter ended July 29, 2023. In addition, the decrease was attributable to an overall reduction of debt primarily through the termination of the Term Loan Credit Facility in the second quarter of fiscal 2023 and lower levels of debt under the revolving credit facilities, partially offset by an increase in interest expense related to the Third Lien credit facility.
Current wording
Interest expense, net decreased $4,436, or 47.1%, to $4,984 in the nine months ended November 2, 2024 from $9,420 in the nine months ended October 28, 2023 primarily due to a $1,755 write-off of deferred financing costs and a $553 prepayment penalty both associated with the termination of the Term Loan Credit Facility, as well as an $828 write-off of deferred financing costs associated with the termination of the 2018 Revolving Credit Facility, incurred in the prior quarter ended July 29, 2023. In addition, the decrease was attributable to an overall reduction of debt primarily through the termination of the Term Loan Credit Facility in the second quarter of fiscal 2023 and lower levels of debt under the revolving credit facilities, partially offset by an increase in interest expense related to the Third Lien Credit Facility.
Previous wording
Benefit for income taxes for the six months ended August 3, 2024 was $1,681. The benefit represents the discrete tax benefit recorded during the first quarter of fiscal 2024 primarily recognized from the reversal of a portion of the non-cash deferred tax liability related to the Company's equity method investment, which a portion can now be used as a source of income to support the realization of certain deferred tax assets related to the Company's net operating losses.
Current wording
Benefit for income taxes for the nine months ended November 2, 2024 was $1,681. The benefit represents the discrete tax benefit recorded during the first quarter of fiscal 2024 primarily recognized from the reversal of a portion of the non-cash deferred tax liability related to the Company's equity method investment, which a portion can now be used as a source of income to support the realization of certain deferred tax assets related to the Company's net operating losses.
Previous wording
The benefit for income taxes was $5,877 for the six months ended July 29, 2023. This benefit was due to a $6,127 discrete tax impact from the change in classification of the Company's Vince tradename indefinite-lived intangibles to Assets Held for Sale during the first quarter of fiscal 2023, offset by $250 of tax expense from applying the Company's estimated effective tax rate for the fiscal year to the six-months (loss) income before income taxes and equity in net income (loss) of equity method investment, excluding discrete items. The change in classification of the Company's Vince tradename indefinite-lived intangibles resulted in a reversal of the non-cash deferred tax liability previously created by the amortization of indefinite-lived tradename intangible asset recognized for tax but not for book purposes, as this non-cash deferred tax liability can now be used as a source to support the realization of certain deferred tax assets related to the Company's net operating losses. See Note 11 "Income Taxes" to the Condensed Consolidated Financial Statements in this Quarterly Report for further information.
Current wording
The benefit for income taxes was $5,368 for the nine months ended October 28, 2023. This benefit was due to a $6,022 discrete tax benefit resulting from the change in classification of the Company's Vince tradename indefinite-lived intangibles to Assets Held for Sale during the first quarter of fiscal 2023, partially offset by $499 of discrete state tax expense associated with the Authentic Transaction and tax expense from applying the Company's estimated effective tax rate for the fiscal year to the nine-month income (loss) before income taxes and equity in net income of equity method investment, excluding discrete items. The change in classification of the Company's Vince tradename indefinite-lived intangibles resulted in a reversal of the non-cash deferred tax liability previously created by the amortization of indefinite-lived tradename intangible asset recognized for tax, but not for book purposes, as this non-cash deferred tax liability can now be used as a source to support the realization of certain deferred tax assets related to the Company's net operating losses.
Previous wording
Equity in net income (loss) of equity method investment for the six months ended August 3, 2024 and July 29, 2023 was a loss of $173 and income of $207, respectively, and was related to the Company's 25% membership interest in ABG Vince.
Current wording
Equity in net income of equity method investment for the nine months ended November 2, 2024 and October 28, 2023 was $106 and $863, respectively, and was related to the Company's 25% membership interest in ABG Vince.
Previous wording
(1) Unallocated corporate for the three months ended July 29, 2023 includes the $32,043 gain related to the sale of the Vince intellectual property and certain related ancillary assets.
Current wording
(1) Unallocated corporate for the nine months ended October 28, 2023 includes the $32,043 gain related to the sale of the Vince intellectual property and certain related ancillary assets.
Previous wording
Net sales from our Vince Wholesale segment increased $8,567, or 12.4%, to $77,441 in the six months ended August 3, 2024 from $68,874 in the six months ended July 29, 2023, primarily due to higher full-price shipments.
Current wording
Net sales from our Vince Wholesale segment increased $7,492, or 6.3%, to $126,206 in the nine months ended November 2, 2024 from $118,714 in the nine months ended October 28, 2023, primarily due to higher full-price shipments.
Previous wording
Income from operations from our Vince Wholesale segment increased $6,916, or 34.7%, to $26,847 in the six months ended August 3, 2024 from $19,931 in the six months ended July 29, 2023, primarily driven by increased net sales and improved gross margin, partially offset by royalty expense associated with the License Agreement with ABG Vince.
Current wording
Income from operations from our Vince Wholesale segment increased $9,972, or 28.4%, to $45,070 in the nine months ended November 2, 2024 from $35,098 in the nine months ended October 28, 2023, primarily driven by increased net sales and improved gross margin. This gross margin improvement was partially offset by the unfavorable impact of royalty expense associated with the License Agreement with ABG Vince, as royalty expenses were not incurred for the full duration of the comparative period due to the commencement of the License Agreement occurring in the second quarter of the prior fiscal year.
Previous wording
Net sales from our Vince Direct-to-consumer segment decreased $5,945, or 18.1%, to $26,985 in the three months ended August 3, 2024 from $32,930 in the three months ended July 29, 2023. Comparable sales decreased $4,000, or 13.6%, including e-commerce, primarily due to a decrease in e-commerce volume. Non-comparable sales, including Vince Unfold, declined $1,945. Since July 29, 2023, five net stores have closed bringing our total retail store count to 61 (consisting of 47 full price stores and 14 outlet stores) as of August 3, 2024, compared to 66 (consisting of 49 full price stores and 17 outlet stores) as of July 29, 2023.
Current wording
Net sales from our Vince Direct-to-consumer segment decreased $11,378, or 11.5%, to $87,296 in the nine months ended November 2, 2024 from $98,674 in the nine months ended October 28, 2023. Comparable sales, including e-commerce, decreased $5,637, or 6.4%, primarily due to a decrease in e-commerce volume. Non-comparable sales, including Vince Unfold, declined $5,741. Since October 28, 2023, five net stores have closed bringing our total retail store count to 61 (consisting of 47 full price stores and 14 outlet stores) as of November 2, 2024, compared to 66 (consisting of 49 full price stores and 17 outlet stores) as of October 28, 2023.
Previous wording
Our Vince Direct-to-consumer segment had a loss from operations of $1,462 in the six months ended August 3, 2024 compared to income from operations of $2,199 in the six months ended July 29, 2023. The change was primarily driven by an increase in SG&A expenses, due mainly to lower rent expense in the prior comparative period related to lease modifications, and lower sales. The loss from operations was partially offset by an improved gross margin that was unfavorably impacted by royalty expenses associated with the License Agreement with ABG Vince.
Current wording
Our Vince Direct-to-consumer segment had a loss from operations of $848 in the nine months ended November 2, 2024 compared to income from operations of $2,151 in the nine months ended October 28, 2023. The change was primarily driven by lower net sales and an increase in SG&A expenses, due mainly to lower rent expense in the prior comparative period related to lease modifications, partially offset by lower expenses primarily related to staffing and an improved gross margin. This gross margin improvement was partially offset by the unfavorable impact of royalty expense associated with the License Agreement with ABG Vince, as royalty expenses were not incurred for the full duration of the comparative period due to the commencement of the License Agreement occurring in the second quarter of the prior fiscal year.
Previous wording
Net sales from our Rebecca Taylor and Parker segment decreased $191, or 100.0%, to $0 in the six months ended August 3, 2024 from $191 in the six months ended July 29, 2023 primarily due to the wind down of the Rebecca Taylor and Parker businesses.
Current wording
Net sales from our Rebecca Taylor and Parker segment decreased $191, or 100.0%, to $0 in the nine months ended November 2, 2024 from $191 in the nine months ended October 28, 2023 primarily due to the wind down of the Rebecca Taylor and Parker businesses.
Previous wording
Our Rebecca Taylor and Parker segment had a gain from operations of $7,633 in the six months ended August 3, 2024 compared to a gain from operations of $2,449 in the six months ended July 29, 2023. The change was driven by the gain on sale of Rebecca Taylor. In addition, income from operations for the six months ended July 29, 2023 includes a net benefit of $1,750 from the wind down of the Rebecca Taylor business, primarily related to the release of operating lease liabilities as a result of lease terminations, a $765 gain associated with the sale of the Parker tradename and $150 of transaction related expenses associated with the sale of the Parker tradename.
Current wording
Our Rebecca Taylor and Parker segment had income from operations of $7,633 in the nine months ended November 2, 2024 compared to income from operations of $2,443 in the nine months ended October 28, 2023. The change was driven by the gain on sale of Rebecca Taylor. In addition, income from operations for the nine months ended October 28, 2023 includes a net benefit of $1,750 from the wind down of the Rebecca Taylor business, primarily related to the release of operating lease liabilities as a result of lease terminations, a $765 gain associated with the sale of the Parker tradename and $150 of transaction related expenses associated with the sale of the Parker tradename.
Previous wording
Net cash used in operating activities during the six months ended August 3, 2024 was $7,072, which consisted of net income of $4,949, impacted by non-cash items of $(2,793) consisting primarily of the gain on sale of subsidiary, and cash used in working capital of $9,228. Net cash used in working capital primarily resulted from cash outflows due to an increase in receivables driven by the timing of sales, an increase in inventories due to seasonal cadence, and cash outflows in prepaid expenses and other current assets, primarily due to prepaid royalty expenses, partially offset by an increase in accounts payable and accrued expenses, primarily due to seasonal increases in inventory.
Current wording
Net cash used in operating activities during the nine months ended November 2, 2024 was $633, which consisted of net income of $9,298, impacted by non-cash items of $938 and cash used in working capital of $10,869. Net cash used in working capital primarily resulted from cash outflows due to an increase in receivables driven by the timing of sales, an increase in inventories, and cash outflows in prepaid expenses and other current assets, partially offset by cash inflows in accounts payable and accrued expenses.
Previous wording
Net cash used in operating activities during the six months ended July 29, 2023 was $20,160, which consisted of a net income of $29,131, impacted by non-cash items of $(29,817) and cash used in working capital of $19,474. Net cash used in working capital primarily resulted from a cash outflow in accounts payable and accrued expenses of $17,947 primarily due to the timing of payments to vendors.
Current wording
Net cash used in operating activities during the nine months ended October 28, 2023 was $13,121, which consisted of a net income of $30,114, impacted by non-cash items of $(27,433) and cash used in working capital of $15,802. Net cash used in working capital primarily resulted from cash outflows in accounts payable and accrued expenses of $23,921 primarily due to the timing of payments to vendors, and an increase in receivables driven by the timing of sales, partially offset by a reduction in inventory levels related to more efficient inventory management.
Showing the first 40 of 49 pairs. Open the source sections for the rest.
Rearranged current paragraphs (2)
Current report — wording carried from elsewhere
The favorable impact from lower promotional activity in the Direct-to-consumer segment and lower discounting, which contributed positively by approximately 80 basis points; partially offset by
Current report — wording carried from elsewhere
Interest expense, net decreased $302, or 15.2%, to $1,691 in the three months ended November 2, 2024 from $1,993 in the three months ended October 28, 2023, primarily due to lower levels of debt under the revolving credit facilities, partially offset by an increase in interest expense related to the Third Lien credit facility.
Rearranged previous paragraphs (6)
Previous report — wording carried elsewhere
Gain on sale of intangible assets for the three months ended July 29, 2023 was $32,043 related to the sale of the Vince intellectual property and certain related ancillary assets. See Note 2 "Recent Transactions" to the Condensed Consolidated Financial Statements in this Quarterly Report for further information.
Previous report — wording carried elsewhere
Interest expense, net decreased $2,490, or 60.2%, to $1,647 in the three months ended August 3, 2024 from $4,137 in the three months ended July 29, 2023, primarily due to a $1,755 write-off of deferred financing costs and a $553 prepayment penalty both associated with the termination of the Term Loan Credit Facility, as well as an $828 write-off of deferred financing costs associated with the termination of the 2018 Revolving Credit Facility, incurred in the prior comparative quarter ended July 29, 2023, partially offset by an increase in interest expense related to the Third Lien credit facility.
Previous report — wording carried elsewhere
$4,003 increase in rent and occupancy primarily due to lease modifications effective in the second quarter of fiscal 2023;
Previous report — wording carried elsewhere
$4,782 decrease due to transaction-related expenses associated with the Asset Sale in fiscal 2023; and
Previous report — wording carried elsewhere
$506 decrease in total SG&A expenses resulting from the wind down of the Rebecca Taylor brand.
Previous report — wording carried elsewhere
(1) Unallocated corporate for the six months ended July 29, 2023 includes the $32,043 gain related to the sale of the Vince intellectual property and certain related ancillary assets.