Tue, Jun 17, 8:53 PM (26 days ago)
**Vince Holding Corp. (VNCE) Q1 2025 Financial Summary** **Financial Health & Performance:** - **Revenue:** $57.933M, down 2.1% YoY. - **Gross Profit:** $29.163M, down 2.5% YoY. - **Net Loss:** $4.803M, compared to a net income of $4.380M in Q1 2024. - **EPS:** $(0.37) compared to $0.35 in Q1 2024. **Profit Margins:** - **Gross Margin:** 50.3%, down from 50.6% in Q1 2024. - **Operating Margin:** -7.7%, compared to 9.5% in Q1 2024. **Cash Flow:** - **Operating Cash Flow:** $(11.817M), compared to $(3.878M) in Q1 2024. - **Investing Cash Flow:** $(1.424M), compared to $(740K) in Q1 2024. - **Financing Cash Flow:** $15.219M, compared to $5.003M in Q1 2024. **Earnings Changes:** - **Net Income:** Decreased by $9.183M YoY. - **EPS:** Decreased by $0.72 YoY. **Segment Performance:** - **Vince Wholesale:** Net sales up 0.1%, income from operations down 7.7%. - **Vince Direct-to-Consumer:** Net sales down 4.4%, loss from operations increased. **Trends & Uncertainties:** - **Seasonality:** Apparel industry is cyclical, affected by economic conditions and consumer spending. - **Tariffs & Trade Policies:** Recent tariffs and trade policies may impact liquidity and financial results. - **NYSE Listing:** Company received a notice from NYSE regarding non-compliance with continued listing standards. **Future Operations:** - **P180 Acquisition:** P180 acquired a majority stake, aiming to accelerate growth and profitability. - **License Agreement:** Company pays royalties to ABG Vince, with guaranteed minimum royalties and net sales. - **Debt Management:** Company has a revolving credit facility and a third lien credit facility, with recent amendments and debt forgiveness. **Liquidity & Capital Resources:** - **Sources:** Cash, cash equivalents, cash flows from operations, borrowings, and capital markets. - **Needs:** Working capital, royalty payments, debt service, and capital expenditures. - **Covenants:** Company must maintain excess availability and fixed charge coverage ratio. **Controls & Procedures:** - **Material Weakness:** Company identified a material weakness in internal control over financial reporting. - **Remediation:** Company is implementing controls and procedures to address the weakness. **Legal & Risk Factors:** - **Legal Proceedings:** Company is involved in various legal proceedings, but management believes they won't have a material adverse impact. - **Risk Factors:** Company faces risks related to tariffs, trade policies, liquidity, and NYSE listing.