Q1 2020 Vince Holding Corp Earnings Call
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I would now like to hand, the conference over to Amy Vice President Investor Relations. Thank you. Please go ahead.
Thank you and good afternoon, everyone welcome to been holding Corp. first quarter fiscal 2020 preliminary preliminary results conference call hosting the call today are Brendan Hoffman, Chief Executive Officer, and dates that goes 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 at the company expect those risks and uncertainties are described in today's press release, and then the Companys SEC filings, which are available on the company's website and.
Sure 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.
The preliminary results discussed on today's call are subject to change following the completion of quarterly financial closing procedures and do not include be it the noncash impact of goodwill and intangible asset impairment charges.
Long lived asset or other finite lived intangible asset impairment charges, which are expected to have a material impact on the company's reported result.
After the prepared remarks management will be available to take your questions for as long as time.
Now I'll turn the call over to Brendan.
Thank you Amy thanks for joining us today I.
I hope, everyone and their families remain healthy and safe.
World has changed dramatically over the last several months would be outbreak in to cope with 19 pandemic and the protests against racial the quality across our country.
It's certainly a pivotal time in our history, and we hope for a meaningful path to recovery and the quality.
Turning to our business, while we were pleased with the continued momentum in February.
Onset of the pandemic in subsequent temporary store closures, we had to respond quickly through the downturn in our business.
I am extremely extremely grateful to our teams for their hard work and commitment actually continued operating our business you need to cope with 19 of course.
You have demonstrated resiliency agility and creativity, when executing under pressure and looks limited resources.
Well, our priorities haven't shifted towards actions necessary to manage our brands for the difficult environment I have no less excited about the long term opportunities for our business.
Then spread has been steadily gaining market share over the last three years illustrating that strong and growing falling.
We're still in the early innings of our growth strategy.
The brand has distinct to stare the commercial most luxury and provides comfortable central's that aligns perfectly with they stay at home lifestyle.
The versatility and effortless appeal plays well into the widely publicized trend towards comfort.
Rebecca Taylor has its own modern luxury study, where we see white space opportunity and the contemporary fashion landscape.
You had become even more confident that we can create success, we've achieved advanced by executing a similar strategic playbook.
Well, we look forward to fully resuming our strategies for these brands our near term priorities have been focused on reducing costs and it's.
We will reduce costs, primarily from furloughs and temporary salary reductions and we began negotiations with our vendors in landlords regarding payment terms.
We also amended both on a revolving credit facility and term loan agreements, which temporarily increased availability under the revolver is borrowing base and deferred principal payments on our term loan.
We're also able to relax covenants for both.
Dave will provide more detail on our cost reduction and liquidity measures.
In addition, sun capital controlling shareholder committed up to $8 million, it's needed over the next 12 months.
We remain appreciative of their ongoing support.
We also redirected efforts towards Vinces ecommerce channel, which represented nearly 30% of or direct to consumer business in 2019 conservative engage with our customers.
We remained active in email Instagram and social media, providing content relevant to the current environment, that's fueling demand.
Our marketing focused on continued customer engagement online.
We shifted our tone across channels to speak to our community with a sense of awareness of concern and where possible to offer inspiration.
The response has been enormously positive.
After donating over 30000 masks made in our partner factory to eight health, where weren't healthcare workers and Cobot 19, released partnering directly with the hardest hit New York City in Los Angeles hospitals with the help of million that million mass challenge the announcement on Instagram receive thousands of likes one of our highest engagements.
To date.
We were able to build on that momentum partnering with arc community of vendors and creatives to donate items for the Vince auction for relief.
Raising more than $15000 for meals on wheels, and God Love we deliver.
We've also taken this opportunity to build our brand identity through our community and interest.
Our community of creators and Influencers are sharing their personal stories, while sheltering in place offering recipes their favorite fitness activities books wellness rituals gardening advice and glimpses into how they're wearing Vincent home.
These these efforts helped to accelerate ecommerce growth for the first quarter from the increase we generated in fiscal 2019.
And our wholesale partners the online business for Vince was similarly robust.
The demand at Nordstrom Dot Com was so strong and they did such a great job unlocking their store inventory to fulfill orders. They ended their first quarter virtually flat to the prior year and out the door omni channel sales events.
In addition to driving revenue, we were able to monetize a healthy portion of our online inventory.
We did this heightened promotional levels to ensure we were in a healthy inventory position in terms of both level and quality as we head into the fall season.
Well, we expect the near term environment to remain promotional we remain committed to positioning Vince is a full price spread and we'll work our way back to Joe in your message around newsome lifestyle, starting in the back half of the year.
I Rebecca Taylor the integration process is underway.
With a leaner staff the Vince team has stepped into work with the existing team, which we believe will accelerate our path to success.
Our strategic plan, which will follow a similar roadmap to that of Vince is in progress and we continue to see excellent new growth opportunities given the strong brand recognition and the opportunity within the contemporary market that we anticipate post covert.
Steven Catherine who joined US in January as creative director for our acquired brands has already begun to brews Mark in the Rebecca Taylor brand the static as we develop our path forward.
Notably we were excited to see the enthusiasm from a wholesale partners, who recognize the brand equity of Rebecca Taylor, how could potentially filling white space in the contemporary floor and the knowledge of what we have been able to accomplish insurance.
Well 2019 represented a challenging year for Rebecca Taylor, we remain confident the by instituting the Vince playbook, we can rejuvenate this brand and similar fashion.
Turning to Parker well the integration brand plants have started we've made the decision to pause the creation of new product for the business, where your preserve cash and narrower focus as we navigate through the pandemic.
We continue to believe that the brand compliments our portfolio, but given the current environment, we decided that we need to narrow the focus of our resources.
As we look forward, we're beginning to resume some of our brand strategies for Vince by leveraging our talented team operational capabilities and infrastructure.
We are embracing the work from home culture, which we are finding highly efficient unproductive.
That said this will not fully replaced the physical groups, adding that I believe it is a critical part of the creative process.
Ecommerce continues to perform well with higher traffic and conversion.
As we further develop our omni channel capabilities. We see continued continued outsize growth from this channel.
Well the retail landscape is changing stores remain an important part of our longer term strategy under the proper structure and as a complement to our digital focus.
We are taking a disciplined approach to reopening stores with 10 open as of today three in Texas, One Atlanta, one in Arizona and five in Florida.
We have additional stores planned to open later this week.
As we reopened we're following all state and local guidelines to ensure we do this in a safe from productive way.
While still early performance has exceeded our expectations.
[noise] as part of our retail expansion plans, we are leveraging the market disruption by working with landlords to identify opportunities to obtain additional short term low capex leases with beneficial terms for both our Vince.
Rebecca tailored brands.
Especially as it allows us to get concessions demand it should be shut down or recovery period.
In the wholesale business, while we expect to continue to drive growth from current partners. We're also looking selectively selectively broaden our brands footprint.
Given the success, we've had in regaining a market leadership position building, our way to premium position positioning and extend this floor space and partner doors, we're seeing increased demand for the Vince spread and we'll consider potential opportunities to further expand or wholesale presence.
Our holiday market, where we showcase our collection wholesale customers took place virtually last week. The team did a remarkable job preparing a video to elegantly showcase the collections.
The show was the success in the buyers were extremely complimentary opposed to collections and our ability to bring them to life through the video presentation.
This is a great example, the talent creativity and agility of our teams even while working from home.
Our subscription business, that's unfold well impacted by the health crisis held up better than expected and delivered substantial growth for the year over year basis.
We have a great partnership with castle and I continue to believe the subscription business will be a part of the future industry landscape.
We plan to extend the store men's business when the time is right I remain excited about the potential.
We have continued to skew our marketing investments towards it digital through email Instagram and social media and are pleased to see an uptick in return on spend.
Our email campaigns are driving the strongest engagement and as our list grows we will increasingly leverage segmentation strategies tailored messaging to customers based on based on purchasing behavior.
As we look out or international business in China, We continue to review our options, including ecommerce and stores, we will monitor the environment and our business to determine the right time to resume our expansion plans in this region.
In Europe prior to coded we were pleased with the performance of our first one store.
Monitor the environment and evaluate timing on resuming our expansion plans in Europe as well as explore other countries, where we've had strong interest in opening stores to leverage the Vince brand either directly or through partnerships.
Capital expenditure projects, including our new point Pos system in CRM initiatives will remain on hold for the time being.
Our focus has continued on the integration of Rebecca Taylor and Parker as well as on the emerging our Vince warehouses to provide a fully integrated omni channel experience.
As we get further into bring stores online, we will evaluate and restart expansion of our retail footprint.
While we recognize that the recovery will take time, we're taking actions that we believe will enable us to emerge from this health crisis and resume our growth strategies of the disciplined methodical approach.
We believe that we're strategically well positioned within the contemporary landscape to getting further market share given the momentum ever been spread our brand the static and the resilience of our customer base.
We will continue to leverage the straight to the Vince team to drive forward, the reset of Rebecca Taylor and longer term Parker.
We look forward to providing further updates as the situation evolves.
Now I will turn it over to Dave to further review our financial results Dave.
Thank you Brian.
I want to reiterate my confidence in our long term potential based on our strong portfolio of well positioned brands talented teams solid infrastructure and multiple growth opportunities that lie ahead.
Figures and do not include the non-cash impact or goodwill and a tangible asset impairment charges long list asset for other finite lived intangible acid in parent charges.
Which are expected to have material impact on Ah reported results.
Also note that we plan to file our first quarter 10-Q at the end of July and are finalized financial results will also reflect a benefit of two $3 million from the remeasurement other liability related to the company's tax receivable agreement.
For the first quarter total company net sales decreased 47, 3% to $39 million compared to $74 million in the first quarter of fiscal 2019.
This reflects the closure of all Vince and Rebecca Taylor stores as of March 17th.
Partially offset by approximately 30% increase in our Vince E Commerce business.
For the Vince brand first quarter consolidate net sales decreased 47, 7% to 28 $8 million compared to $55 $1 million in the same prior year period.
Our Vince direct to consumer segment sales decreased 34, 9% to $18 $1 million in the first quarter, reflecting the previously mentioned store closures <unk>, partially offset by the strong growth and R E Commerce business.
R. A N wholesale channel sales decrease 68% to $10 $7 million as a result of to delay and cancellation of order receipts due to the closure of wholesale partner doors.
Similar to performance and our direct business online sales against product on our partner ecommerce sites were stronger first quarter.
The accelerated performance on both our branded websites as well as E commerce sites or a wholesale partners illustrates the continued strength of events brand.
Rebecca Tyler Parker combined net sales decreased 45, 8% to $10.2 million as compared to the same periods last year.
Is Brendan mentioned, we are positive development of new product for our Parker business for now to focus resources on the operations of our Vince Rebecca Taylor brands Post Dakota crisis.
Gross profit in the first quarter was $16 million or 41% of net sales.
So this compares to 37 $9 million for 51, 2% of net sales and the first quarter last year.
The decrease in gross margin rate was primarily due to year over year adjustments to inventory reserved.
Increase promotional activity and deleveraging our supply chain cost <unk> personally upset by lower sales allowances and a channel mixed shift at their desk brand.
Selling general administrative expenses and a quarter for 37 $9 million or 97, two per cent of themselves as compared to $44.1 million with 59 six per cent <unk> for the first quarter of last year.
Is brendan stayed at the onset of the code pandemic I'm sorry, what's the onset of the cord pen that we took a number of responsible actions to reduce costs, including furloughs and temporary salary reductions and tightening expenses to a near zero based variables fan.
As a result, we decrease SG&A dollars by six $2 million, primarily through lower payroll and compensation expense as well as reduce spending on marketing travel product development and free.
This was partially upset by an increase in bad that expense largely related to the impact of Cove at 19 uneven work Marcus as well as specialty retailers.
Over the past few months in addition to managing costs and liquidity, we've been <unk> laser focus on the integration of Rebecca Taylor and Parker is this integration will create both immediate and sustainable cost efficiencies and benefits.
I am happy to report that we are ahead of schedule on this process.
Early in the first quarter, we completed work with a strategic consulting partner to help identify and measure integration synergies and cost savings opportunities as well as to develop the strategic plan for these brands.
The consulting firm work closely with key members of evinced branches across multiple areas, including merchandising cells E commerce marketing and distribution.
The associated consulting fees did not have a meaningful impact to the change in SG&A expansion. The first quarter as we incurred a similar amount of consulting fees and the same period last year.
Efforts and the prior year related to formulating a long term strategic growth plan, including geographic and product expansion opportunities.
And point, a sale and CRM strategies prevents as well as exploring acquisition opportunities.
Many of these <unk> initiatives, we're in the process of being executed prior to the Cove at 19 pandemic and since then postpone.
We look forward to reinstituting these growth initiatives at the appropriate time.
Operating loss for our first quarter was twenty-one dollars $90 million compared to a loss of six $2 million in the same period last year.
As I stated earlier the lost from operations does not include the non-cash impact a goodwill and intangible acid impairment charges, longwood asset or other finite live intangible assets impairment charges.
Moving to the balance sheet cashed in cash equivalents for 20 $666 million as of May 2nd which compares to $1 million for the same period last year.
This increase reflects borrowings on a revolving credit facility that we drew down to protect our liquidity in response to cope with 19.
We typically carry minimal cash in our balance sheet and use all excess cash to pay down a revolving credit facility.
However, we believed it was prudent to increase level of cash or balance sheet.
As we managed our business through the health crisis.
As a result of the dry down on a revolving credit facility borrowings under our debt agreements total 88 $4 million, reflecting in increase of 25 $8 million since the same periods last year.
Subsequent to the first quarter upon the execution of the third amendment to our <unk> credit facility, which I will discuss shortly.
Pay down there should be vulgar and as of the date of the amendment.
We had 25 $8 million available on our revolving credit facility.
Moving to inventory as of May 2nd net inventory with $68 $1 million compared to $66 million at the end of the first quarter last year.
At the onset of Kobe 19, we took immediate steps to cancel future orders for product in response to the clothing or stores in the cancellation of orders from our wholesale partners.
During the second quarter, we will receive shipments of project that we are unable to cancel.
A portion of this inventory consists of transitional product that will be incorporated into our fall collections, while limited levels of our more lightweight seasonal product can be held for next year as it was still both be both relevant and new to our customer.
That said, we'll take steps to move through the remainder of this inventory in order to keep us in a fresh position.
This is expected to create pressure on our gross margin and the second quarter.
Capital expenditure for the first quarter totaled approximately $300000, reflecting expenditures and process prior to the kogut outbreak.
We pause the majority of our capital expenditure plans for 2020, excluding the investments related to the integration Rebecca Taylor and Parker previously discussed as well as investments related to Omnichannel initiatives for the Vince brand is this is key to enhancing our customer experiencing an increasing productivity or are in.
<unk>.
Since the end of the first quarter, we've taken additional steps to manage our liquidity and maintain financial flexibility.
We have been working with our suppliers on extending payment terms on managing inventory flow and on it on enhancing the agility of our supply chain as we emerge it evolved within a changing retail environment.
In addition, we aren't and negotiation with our landlord on occupancy relief to match the expected retail recovery timeline in our pleased with the progress we have made today.
As I mentioned earlier on June 8th.
This year, we entered into a third amendment to our existing revolving credit facility <unk>.
And to our existing term loan credit facility.
The third revolve your amendment among others temporarily increased availability under facilities borrowing base by increasing the aggregate commitments to $110 million from 100 million through November 30th 2020, and revised certain eligibility criteria trade receivables to be coded included.
And the borrowing base during that period.
As well as waves certain events a default.
The amendments also temporarily suspended.
The requirement to maintain a specified consolidated fixed charge coverage ratio.
Through the delivery of a compliant certificate relating to the fiscal quarter ending July 31 2021.
And replace it with a springing covenant under which the obligation to maintain.
[noise] specified consolidated fixed charged cubby ratio of one to one has triggered only one of the excess availability on the revolving credit facility false false below $15 million.
Or for the period between September 620, 20, and January 9th 2021 $10 million or for the period between January 10th 2021 in January 31st 2021.
And a half million dollars.
With the ability to cure any default there under by including any amount provided by equity or subordinate that in the excess availability.
In addition is Brendan mentioned affiliates of some cap capital partners, who currently own approximately 72% of the companies outstanding shares a common stock have committed through June 15th of 2021 to provide financial Sofa report.
Up to $8 million if needed.
As stated in our press release published this afternoon duty due to the uncertainty related to the impact of Kobe 19, we will not be providing guidance at this time.
While the world is changing drastically week by week, we continue to assess the evolving situation is locked on restrictions are lifted.
We will provide an update on guidance in future quarters, as we begin to get more clarity on the situation.
Although there's currently a lot of uncertainty surrounding the retail environment. We remain confident that our portfolio branch are well positioned to deliver strong long-term sustainable growth for our shareholders.
To repeat bread is closing comments, we believe that rare strategically well positioned within the contemporary landscape to gain further market share given the momentum and our this brand and our brand aesthetic and the resilience of our customer base. We will continue to leverage the strength to the Vince team to drive forward to reset it Rebecca Taylor.
And longer term Parker.
This concludes my comments regarding our first quarter.
We will now take your questions.
Later.
Certainly ladies and gentlemen in order to ask a question you do need the press star one on your telephone. Please stand fire what are we compatible Q&A roster.
Our first question is from Dan Telsey with Chelsea Advisory Group. Your line is open.
Good afternoon, everyone I'm glad to hear that everyone is safe and healthy.
And as you think of the game plan for game.
Successful.
Formation in the business myself and now obviously, given cobin 19, it almost seems like.
Reinvent again, how do you think you mentioned the wholesale landscape, how do you think of going beyond <unk> and Nordstrom and if you think about the upcoming holiday season, how <unk> how are orders being planned or is it must be more of a D. P seatbelt than a wholesale okay.
Oh, yeah. Thanks.
Yeah. Thanks Dana.
Yeah, I mean, I think that what goddess here is what's getting us through cold within what ultimately will allow us to be even more successful. The other side you know it starts with great product, which we are very proud how we have reengineer dad over the last three years too.
Build on what the founders originally brought to within.
And you're doing so not only with our wholesale partners, specifically name and the nordstroms.
And great specialty stores around the world, but also growing R. D. T C business, leaving first with digital if I mentioned are penetration as close to 30 for over 30%, which you know I think probably compares very well two other brands in our space and so we'll just continue to lean heavily on that.
As we've seen over the last few months, how well that channel has performed for us, but as I mentioned in my remarks, you know I think in some contrarian way. So we'll see an opportunity again and brick and mortar stores under the right scenario, whether it's a as <unk> as as an opportunity to mitigate some of the.
Current headwinds that are happening with rent and in store closures or longer term in the a malls that we're in and they locations as a way to further enhance our digital N D. T. C strategy. So so we feel excited about what what this all means on the other side without really.
Hard to give it from what we were doing in many ways to just accept accelerates. The the strategies, we had an place in terms of our wholesale distribution.
Think S. S everyone's doing right now we're all looking for different levers, we can pull to provide some additional security and opportunity and and I think the initial.
[noise] reaction by by all the.
Wholesalers as as we would expect was to it was to cut back and cut back dramatically, we're starting to see as they see the how would they collection of stores start to open up as they recognize as as they have said adventures one of the brand. So there's most important to them I think we're seeing.
More potential upsize and perhaps the initial worrisome scenarios that that that happened that first but we're still keeping our options open to make sure that as I said, we have different levers we can pull to ensure we not only get through this but get through this in a position of strange for for the Vince Brad.
And obviously now for Rebecca Taylor and Parker.
HM.
When you think about.
Hi, there wholesale accounts is that I did department stores do you Wanna go too or is it specialty stores or E commerce platforms.
Yeah, I think it could be anything or none of those I think we're just you know in the initial stages of try like everybody else trying to see how they saw plays out you know where the winners and losers or through this I'm, just making sure that we have enough optionality.
N a R distribution to to to take advantage of whatever whatever the opportunities are so you know I I think the common I made my remarks was really just to acknowledge that we do have different levers, we can pull whether it P. T. T C. Your wholesale both to ensure that we have the safe.
P to to survive the pandemic, but then also to thrive in the post pandemic world. So I think without getting any more specific than that it was really more than knowledge of the different options we have.
Got it and then on the gross margin how much how much of an inventory reserve <unk> did you take and on the SG&A buckets.
How was I keep it is occupancy can it be renegotiated you gotta percentage ranch, because what I'm hearing is exactly what you said, there's certainly a lot of opportunity T. P at and negotiate transactions with either space. If you wanted to take other space N and negotiate your <unk>. Some of your existing leaves times, you said that opportunity and.
What are their big buckets of SG&A do you see in addition to the honestly the commentary on me and then Toyah reserves for gross margin.
<unk>, Yeah, I'll comment on the rents for yeah I'll come in on the Reds first one hand, it over the day to come back from the other things you asked me I think yeah. We're we're very pleased with the most parts of <unk>. Most part about the constructive conversations we're having with the landlords you know obviously everybody's in a very difficult situation here.
And you know for a period of time, there wasn't all that much to discuss but but now as we started open up stores.
We have entered into meaningful dialogue on on what the proper solutions are in there's there's still ongoing I'd say, we're kind of midway through obviously, we have a lot of different leaseholders. We have a couple that <unk> hold a lot of her leases and they're very pleased with the discussions there and then we have a lot of one off that again.
Were equally pleased with with with the direction of the conversation, but they're not done yet you know and so we have a ways to go but but clearly our ability to see Ah Ah opportunity for for Vince and Rebecca Taylor.
On the strategy, we went into Covid with which was shorter term percentage rent flexible leases. You know is is is survey no. It's very well now not only in those that we have under that structure, but also in already having that as a competency for our brand and brands when we talk about running the Vince playbook.
Could be able to open up stores with very little Capex have them look fantastic to the consumer and do business on a with a variable expense structure. So more to come on that but that's certainly pleased over the last few weeks of direction the.
They rent discussions of gone with the landlords and they'll turn it over the day I've gone back somebody other stuff your last payment.
Yeah <unk> Danny on on inventories. Please reserve is that what you asked about yes exactly.
Yeah, so on some inventory perspective.
You know, it's it's it's a variable look as to where we project what we can move the product you know through a different channels.
From a right of how many points, we'll get back to you on on that what we what we finally.
Booked.
But.
We feel comfortable where we have inventory reserve set for the quarter.
And did you have other questions on on landlords alright, no just anything else <unk> on the gross margin in terms of unpacking, the gross margin, which was the biggest impacts to gross margin.
Yeah, Yeah, no no the largest impacts.
Additionally, rheumatoid throws his office, obviously, the coke emotionality of of the product.
You know it was you know the consumer responded responded well on the website both our website.
I'm out of our wholesale partners you know as to pull up the promotion Alley at work that was <unk> two of them.
Yeah, I mean, we we we just to further on that you know we we obviously worked very hard to get ourselves to be a regular price brand you know and it took a few years and so you know this we're all doing right now what we need to deal with the move inventory and drive the top line in spring in cash and so that's forced all of us in our space to get a little bit more promotional.
Then we otherwise would've liked but I don't think that it has a long-term hangover from the Vince brand I think you know as we get to the back half of the year and we start to be able to get the stores open then slow a new product, we'll we'll be able to pull back on a promotion that'll D. I still think we're probably less than a direct competition even through Cove. It and then you know we'll look Theresa.
<unk> Foley in 2021, when hopefully we get back to normal cadence, but but that's that's absolutely a priority for us because we saw the benefits 2019 of getting those higher regular price sensors.
And then the early read on the news on the stores that are reopening I think it was only like 10 stores, where are you in terms of productivity level of as compared to last year.
Yeah, I mean, I I would say <unk> you know, we we obviously had very modest expectations and we're beating them you know it's it's it's it's hard.
I would say the number is in the down 50 per cent range, but you know what stores are so small such a small sample it can be.
It can skew a lot I will say, Florida opened up very strong last week. So the weekend in South Florida, absolutely over exceeded what we were seeing in Texas. So you know hopefully it's being done safely. We <unk>. We know we're taking all the proper precautions, but you know maybe that bodes well as they opened up other stores in California and.
Such where where there is that 10th up demand that you know, we'll see you hit the ground quicker than we give me earlier states.
And what is there any difference in performance between your own online sites and knows from your wholesale partners.
Yeah, I mean as I mentioned in in my remarks, Nordstrom did a phenomenal job somehow we ended up virtually flak for the cord or in their register sales and that was obviously with the stores being closed for six weeks, so they're ecommerce business with fantastic not only in there.
Create the demand, but they're able to their ability to unlock the the store inventory to fulfill it. So there. There. There's was was fantastic and obviously we were please with the step up an hour. So I I I'd say it was it it you know across the board. Some of it was was a little bit inconsistent just do the timing and.
And their abilities summit.
Some of the sites didn't have the same access to the fulfillment center to be able to fulfill the demand that the the others did so but you know, but but where they were able to allow the demand to to be fully realized and we saw a tremendous strained then.
I think the Vince product as I mentioned in my remarks, it lends itself well to this work from home because that's you know Anna Wintour set set a couple of times, it's all about comfortable clothing, now and I don't think there's a more comfortable wine and Vince cause I'm biased.
Thank you.
Okay. Thanks days.
I'm doing this concludes for Q&A I don't know if anything's back over to bring in Hoffman for any closing remarks.
Great. Thank you again for joining US today, we look forward to updating you on two two results in the fall stay safe.
[noise], ladies and gentlemen, this concludes today's conference call them. Thank you for your participation in Germany now disconnect.
[music].