Q1 2025 Vince Holding Corp Earnings Call
Okay.
[music].
Okay.
Okay.
Okay.
No.
Okay.
Okay.
Okay.
Okay.
Okay.
[laughter].
Okay.
Okay.
Okay.
Okay.
[music].
Okay.
Okay.
Okay.
Okay.
Okay.
Okay.
Okay.
Okay.
Okay.
[music].
Uh huh.
Yeah.
Operator: Good morning, or good afternoon, and welcome to the Vince Q1 2025 Earnings Conference Call. My name is Adam and I'll be your operator today. If you'd like to ask a question during the Q&A portion of today's call, you may do so by pressing star followed by one on your telephone keypad.
Speaker Change: Good morning, or good afternoon, and welcome to the you Vince Q1 trends 25 earnings Conference call. My name is out to them and it will be appropriate to stay if you'd like to ask a question. During the Q&A portion of today's call me too. So good crushing staff will look like one on your telephone keypad.
Akiko Okuma: We'll now hand the floor to Akiko Okuma to begin. So please go ahead when you're ready. Thank you and good morning, everyone.
Ill hand, the foods U K agreement at the beginning so please go ahead when you're ready.
Brendan Hoffman: Thank you and good morning, everyone welcome to Vince holding Corp, first quarter fiscal 2025 results conference call hosting the call today is Brendan Hoffman, Chief Executive Officer, and the Museum Morris Chief Financial Officer.
Akiko Okuma: Welcome to Vince Holding Corp's first quarter fiscal 2025 results conference call.
Akiko Okuma: Hosting the call today is Brendan Hoffman, Chief Executive Officer and Yuji Okumura, 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 that the company expects. Those risks and uncertainties are described in today's press release and in the company's FTC filings, which are available on the company's website. Investors should not assume that statements made during the call will remain operative at a later time and the company undertakes no obligation to update information discussed on the call.
Brendan Hoffman: 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 that the company expects.
Brendan Hoffman: Those risks and uncertainties are described in today's press release and in the company's SEC filings, which are available on the company's website.
Investors should not assume that statements made during the call will remain operative at a later time and the company undertakes no obligation to update information discussed on the call.
Akiko Okuma: In addition, in today's discussion, the company is presenting its financial results in conformity with GAAP and then on an adjusted basis. The adjusted results that the company presents today are non-GAAP measures. Discussions of these non-GAAP measures and information on reconciliations of them to their most comparable GAAP measures are included in today's press release and related schedules, which are available in the investor section of the company's website at investors.biz.com.
Brendan Hoffman: In addition in todays discussion the company is presenting its financial results in conformity with GAAP and then on an adjusted basis. The adjusted results that the company presents today are non-GAAP measures.
<unk> of these non-GAAP measures and information and a reconciliation of them to their most comparable GAAP measures are included in today's press release and related schedules, which are available in the investors section of the company's website at investors Vince Dot com.
Brendan Hoffman: Now I'll turn the call over to Brendan. Thank you, Akiko, and thank you everyone for joining us today. Given it has not been that long since we last spoke, my remarks today will be relatively brief.
Akiko Okuma: Now I'll turn the call over to Brendan. Thank you Chico and thank you everyone for joining us today.
Brendan: Given it has not been that long since we last spoke my remarks today will be relatively brief.
Brendan Hoffman: Before I review highlights from the first quarter, I want to spend a moment to discuss where we are with respect to our mitigation efforts related to the evolving tariff policy. I cannot overstate how proud I am of our organization and how quickly our team sprung into action over the past few weeks, negotiating with vendors, working closely with supportive partners, and exploring diversification and other opportunities within the supply chain to mitigate impact. In short order, we have already significantly reduced our exposure to China, beginning with our fall product, leveraged opportunities to mitigate near-term costs, and made select and strategic adjustments to our pricing arc.
Brendan: Before I review highlights from the first quarter I want to spend a moment to discuss where we are with respect to our mitigation efforts related to the evolving tariff policies.
Brendan: I cannot overstate, how proud I am of our organization and how quickly our team sprung into action over the past few weeks negotiating with vendors working closely with supportive partners and exploring diversification and other opportunities within the supply chain to mitigate impact.
Brendan: In short order, we've already significantly reduced our exposure to China, beginning with our fall product leveraged opportunities to mitigate near term costs and made selective strategic adjustments to our pricing architecture.
Brendan Hoffman: While we are pleased to see some reprieve in the tariff policy for the moment, given the fluidity of the situation, we are maintaining a disciplined approach to all plans going forward and believe it is prudent to maintain a perspective to not provide full year guidance at this time.
Brendan: While we are pleased to see some reprieve in the tariff policy for the moment.
Brendan: Given the fluidity of the situation, we are maintaining a disciplined approach to all plans going forward and believe it is prudent to maintain a perspective to not provide full year guidance at this time.
Brendan Hoffman: Now let me discuss a few highlights from the course. We have continued to see relative outperformance in our wholesale segment compared to our direct-to-consumer. However, we were pleased to see the sequential improvement in trend within our direct business This was largely driven by our e-commerce. But our stores, excluding the impact from closures and remodels, also delivered a nice performance on a like-for-like basis, despite contending with headwinds associated with weather and the evolving macroeconomic backdrop that impacted consumer service. In addition to the top line performance, we delivered improved product excluding freight and other distribution costs. A testament to the ongoing success we are seeing in managing a healthier margin business as we continue to balance our promotional activity as well as extend our full price seasonal Across both men's and women's, sweaters continue to perform well.
Brendan: Now, let me discuss a few highlights from the quarter.
Brendan: We have continued to see relative outperformance in our wholesale segment compared to our direct to consumer. However, we were pleased to see the sequential improvement in trend within our direct business in the quarter.
Brendan Hoffman: This was largely driven by our E Commerce channel and our stores, excluding the impact from closures and Remodels also delivered a nice performance on a like for like basis, despite contending with headwinds associated with weather and the evolving macroeconomic backdrop.
Brendan: The impacted consumer sentiment.
Brendan: In addition to the top line performance, we delivered improved product margins, excluding freight and other distribution costs a testament to the ongoing success, we're seeing in managing a healthier margin business as we continued to balance our promotional activity as well as extend our full price seasonal offering.
Brendan Hoffman: Across both men's and women's sweaters continued to perform well.
Brendan Hoffman: We also saw a nice reception to our more traditional spring product like bits and tees for women and linen for men towards the end of the quarter in line with warmer weather. In our Knits business, we introduced new color palettes that drove solid growth in the category. And our Bottoms business also performed nicely with both men's and women's. Our men's business delivered another quarter of strong growth and continues to serve as a key driver as we extend our reach for this office.
Brendan: We also saw a nice reception to our more traditional spring product like <unk> for women and Linden for men towards the end of the quarter in line with warmer weather.
Brendan: And our niche business, we introduced new color pallets of drove solid growth in the category and our bottoms business also performed nicely with both mens and womens and mens business delivered another quarter of strong growth and continues to serve as a key driver as we extend our reach for this offering.
Brendan Hoffman: As we look ahead, we are also excited for our expanded international presence at the recent opening of our Mar-le-Bon location. We have always believed in London as a key city for us as it attracts both local residents and international travelers from around the globe. We are thrilled to have a location in Marylebone, which is a vibrant location in central London. And I'll compliment our Dreycott, Chelsea, South Kensington store nicely, welcoming both new and existing customers.
Brendan: As we look ahead. We are also excited for our expanded international presence. The recent opening of our Marlin bar locations.
Brendan: He is believed in London as a key city for us as it attracts both local residents and international travelers from around the globe.
Brendan: We are thrilled to have a location in <unk>, which is a vibrant location in central London complement our Dray Cup Chelsea SaaS Kensington store nicely welcoming both new and existing customers to Vince.
Brendan Hoffman: In the U.S., we are on track to open our Nashville and Sacramento stores later this year. We are continuing to assess plans going We believe in the importance of our store channel and have continued to invest in refreshing and remodeling our stores to ensure we are creating the customer experience that aligns with the look and feel of the Vince brand. We recently remodeled our Greenwich, Hanford, and Mercer stores and are thrilled with the refreshed look each has now.
Brendan: In the U S. We are on track to open our Nashville in Sacramento stores. Later this year, we're continuing to assess plans going forward.
Brendan Hoffman: We believe in the importance of our store channel has continued to invest in refreshing and remodeling our stores to ensure we are creating the customer experience that aligns with the look and feel of the Vince brand.
Brendan: We recently remodeled our Greenwich, Stanford and Mercer stores and are thrilled with our refreshed look each has now.
Brendan Hoffman: While too early to speak to any lift associated with these remodels, we believe introducing a new flow to the store, leveraging our mobile POS and opening additional capacity will benefit these locations and provide a nice return to the investments we've made thus In closing, our first quarter reflects the dynamic environment in which we are operating as well as the underlying strength of our operations and Vince's brand positioning in the market. As we look to the second quarter, while the tariff situation has delayed pre-fall product shipments, we have been able to extend the full price selling season for spring, creating a nice support to current trends in the business.
Brendan: Too early to speak to any lift associated with these remodels, we believe introducing a new flow to the store leveraging our mobile Pos and opening additional capacity will benefit these locations and provide a nice return to the investments we have made thus far.
Brendan: In closing our first quarter reflects the dynamic environment in which we are operating as well as the underlying strength of our operations and Vince's brand positioning in the marketplace.
Brendan: As we look to the second quarter, while the tariff situation has delayed pre fall product shipments, we have been able to extend the full price selling season for spring, creating a nice support to current trends in the business.
Brendan Hoffman: This perhaps is a lesson that we can take away from the current situation as we have talked in the past and how best to align our four sets to the buy now wear now behavior customers have shifted to over the last few years. We will be thinking through this and our plans going forward, but for the immediate term, our focus is ensuring we are well positioned as we move into the heart of our selling season later this year. We feel very good with the trends we are seeing to date, as reflected in the sequential improvement our outlook implies.
Brendan: This perhaps is a lesson that we can take away from the current situation as we've talked in the past and how best to align our floor sets to the buy now wear now behavior customers have shifted to over the last few years.
Brendan: We will be thinking through this and our plans going forward, but for the immediate term. Our focus is ensuring we are well positioned as we move into the heart of our selling season later this year.
Brendan: We feel very good with the trends we are seeing to date is reflected in the sequential improvement in our outlook implies.
Brendan Hoffman: But we remain cautious, given the level of uncertainty there continues to be with respect to the macroeconomic environment.
Brendan: But we remain cautious given the level of uncertainty there continues to be with respect to the macroeconomic environment.
Brendan Hoffman: As discussed in our last call, while we believe in the great opportunities ahead for Vince Holding Corp., and I look forward to sharing more with you on thoughts regarding strategic growth initiatives. Our priority at the moment remains navigating today's environment.
Brendan: As discussed on our last call, while we believe in the great opportunities ahead for Vince holding Corp.
Brendan: I look forward to sharing more with you on thoughts regarding strategic growth initiatives.
Brendan: Our priority at the moment remains navigating todays environment.
Brendan Hoffman: Once there is more certainty with respect to tariffs, we look forward to updating you on our longer term plans and growth opportunities that we see propel Vince Holding Corp into its next chapter.
Brendan: Once there is more certainty with respect to tariffs we look forward to updating you on our longer term plans and growth opportunities that we see propel Vince holding corp into its next chapter.
Yuji Okumura: I'll now turn it over to Yuji to discuss our financial results and outlook in more detail. Thank you, Brendan, and good morning, everyone. Our first quarter performance reflected the trends and drivers we previously discussed on our prior earnings poll in our top line reflecting stability in our wholesale business while our direct-to-consumer segment was more inconsistent as we navigated challenging weather in the beginning of the period and increased macroeconomic uncertainty and declines in our consumer sentiment. With that said, as Brendan reviewed, we are very proud of how our teams have continued to stay flexible and deliver on objectives, including delivering customers the quality and experience they expect from them.
Speaker Change: I'll now turn it over to <unk> to discuss our financial results and outlook in more detail.
Speaker Change: Thank you Brendan and good morning, everyone.
Speaker Change: First quarter performance reflected the trends and drivers previously discussed on our prior earnings call, our topline, reflecting stability in our wholesale business, while our direct to consumer segment was more inconsistent as we navigate a challenging weather in the beginning of the period and increased macroeconomic uncertainty and declines in our consumer.
Speaker Change: Got it.
Speaker Change: With that said as binding review, we are very proud of how our teams have continued to stay flexible and deliver on objectives, including delivering hospitalized the quality and experience they expect from there.
Yuji Okumura: Now with respect to our first quarter performance, the total company net sales for the first quarter decreased 2.1 percent to $57.9 million compared to $59.2 million in the first quarter of fiscal 2024. With respect to channel performance, our wholesale segment was relatively flat compared to the prior year, while our direct-to-consumer segment declined 4.4%, primarily due to planned store activity, including closures, remodels, and relocations, along with software trends and traffic. Gross profit in the fourth quarter was $29.2 million, or 50.3% of net sales. This compares to $29.9 million, or 50.6% of net sales in the first quarter of last year.
Speaker Change: Now with respect to our first quarter performance total company net sales for the first quarter decreased two 1% to $57 9 million compared to $59 2 million in the first quarter of fiscal 2024.
Speaker Change: With respect to channel performance, our wholesale segment was relatively flat compared to the prior year, while our direct to consumer segment declined four 4%, primarily due to plan for activity, including closures remodels and relocation along with softer trends in traffic.
Speaker Change: Gross profit in the fourth quarter was $29 2 million or 53% from that sale.
Speaker Change: This compares to $29 9 million or 56% of net sales in the first quarter of last year.
Yuji Okumura: The decrease in gross margin rate was primarily driven by approximately 260 basis points related to higher freight and duty costs and approximately 120 basis points related to wholesale channel mix and approximately 60 basis points due to higher distribution and handling. These factors were partially offset by approximately 330 basis points related to lower product cost and higher pricing, and approximately 80 basis points related to lower promotional activity. Selling general and administrative expenses in the quarter were $33.6 million or 58% of net sales as compared to $31.9 million or 54% of net sales for the first quarter of last year.
Speaker Change: The decrease in gross margin rate was primarily driven by approximately 260 basis points related to higher freight and duty cost.
Speaker Change: Proximately 120 basis points wholesale channel mix, and approximately 60 basis points due to higher distribution and handle.
Speaker Change: These factors were partially offset by approximately 330 basis points related to lower product costs and higher pricing.
Speaker Change: And approximately 80 basis points related to lower promotional activity.
Speaker Change: Selling general and administrative expenses in the quarter were $33 6 million or 58% of net sales as compared to $31 9 million or 54% of net sales for the first quarter of last year.
Yuji Okumura: The increase in SG&A dollars compared to the prior year was relatively in line to our expectations, given the increased marketing spend earlier in the quarter and other expenses related to timing of store relocations and remodeling. In addition, we incurred higher legal, information technology, and third-party costs during the period compared to the prior year.
Speaker Change: The increase in SG&A dollars compared to the prior year was relatively in line to our expectations given the increased marketing spend earlier in the quarter and other expenses related to the timing of store relocations and Remodels.
Speaker Change: In addition, we incurred higher legal information technology, and third party costs during the period compared to the prior year operating loss for the first quarter was $4 4 million compared to an operating income of $5 6 million in the same period last year.
Yuji Okumura: Operating loss for the first quarter was $4.4 million compared to an operating income of $5.6 million in the same period last year. Excluding the gain on sale reported in the prior year period, operating margin declined approximately 425 basis points compared to last year. Net interest expense for the quarter decreased to $0.8 million compared to $1.7 million in the prior year. The decrease was primarily due to lower levels of debt under a term loan credit. At the end of the first quarter of Fiscal 2025, our long-term debt balance was $34.7 million, a reduction of $15.4 million compared to $15.1 million in the prior year period.
Speaker Change: Excluding the gain on sale reported in the prior year period operating margin declined approximately 425 basis points compared to last year net.
Speaker Change: Net interest expense for the quarter decreased $2 eight.
Speaker Change: $8 million compared to $1 7 million in the prior year.
Speaker Change: The decrease was primarily due to lower levels of debt under our term loan credit facility.
Speaker Change: At the end of the first quarter of fiscal $2025 long term debt balance was $34 7 million a reduction of $15 4 million compared to $54 million in the prior year period.
Yuji Okumura: The provision for income tax this quarter was zero, as the company is anticipating annual ordinary income for the fiscal year and has determined that it is likely then not that the tax benefits of the year-to-date loss will not be realized in the current year.
Speaker Change: The provision for income taxes quarter of zero as the company is anticipating annual ordinary income for the fiscal year I have determined that it is unlikely that the tax benefit on the year to date loss will not be realized in the current year.
Yuji Okumura: dual tax for the first quarter of fiscal 2025 compared to an income tax benefit of $0.9 million in the same period last year.
Speaker Change: Zero tax for the first quarter of fiscal 2025 compares to an income tax benefit of <unk> dollars 9 million in the same period last year.
Yuji Okumura: Net loss for the first quarter was $4.8 million, or a loss per share of $0.37 compared to net income of $4.4 million, or income per share of $0.35 in the first quarter of last quarter.
Speaker Change: Net loss for the first quarter was $4 8 million or a loss per share of 37 compared to net income of $4 4 million or income per share of 35 in the first quarter of last year.
Yuji Okumura: Adjusted EBITDA was negative $3 million for the first quarter compared to negative $1.5 million in the prior year. Moving to the balance sheet, net inventory was $62.3 million at the end of the first quarter as compared to $56.7 million at the end of first quarter last year. The year-over-year increase was driven by decrease in inventory reserve as well as incremental costs primarily related to freight and increased duty.
Speaker Change: Adjusted EBITDA was negative $3 million for the first quarter compared to negative $1 5 million in the prior year.
Speaker Change: Moving to the balance sheet.
Speaker Change: Net inventory was $62 3 million at the end of the first quarter as compared to $56 7 million at the end of the first quarter last year.
Speaker Change: The year over year increase was driven by a decrease in inventory reserve as well as incremental costs, primarily related to freight and increase duty.
Yuji Okumura: Moving now to our thoughts on the balance of the year. While we are not providing full year guidance given the ongoing volatility and uncertainty in the macroeconomic backdrop and current tariff policy. Our teams remain committed to discipline expense management and operating with expertise. With respect to our expectations for the second quarter, as Brendan reviewed, we are pleased with the momentum we have continued to see in the business. For the second quarter, we expect net sales to be approximately flat to down 3% compared to the prior year period. Operating income as a percentage of net sales to be approximately negative 1% to positive 1%.
Speaker Change: Moving now to our thoughts on the balance of the year.
Speaker Change: While we are not providing full year guidance, given the ongoing volatility and uncertainty in the macroeconomic backdrop and current tariff policies. Our teams remain committed to disciplined expense management and operating with excellence.
Speaker Change: With respect to expectations for the second quarter as primarily viewed and we are pleased with the momentum we have continued to see in the business.
Speaker Change: For the second quarter, we expect net sales to be approximately flat to down 3% compared to the prior year period operating income as a percentage of net sales to be approximately negative 1% to positive 1%.
Yuji Okumura: And for adjusted EBITDA as a percentage of net sales to be approximately 1% to 4% compared to 3.7% in the prior year period. This guidance assumes approximately 170 basis points in incremental tariff costs for the period. We are very proud of how quickly our organization has jumped into action to mitigate the impact of the increased tariffs are expected to have on our business. We have already dramatically reduced our exposure to China, beginning with our fall product, and believe our spring 2026, our exposure to China will be approximately 25% of our cost of goods. As we continue to diversify our sourcing base outside of China, the focus on product quality and integrity remains our top priority.
Speaker Change: And for adjusted EBITDA as a percentage of net sales to be approximately 1% to 4% compared to three 7% in the prior year period.
Speaker Change: This guidance assumes approximately 170 basis points and incremental tariff cost for the period.
Speaker Change: We are very proud of how quickly our organization have jumped into action to mitigate the impact of the increased tariffs are expected to have on our business.
Speaker Change: We have already dramatically reduced our exposure to China, beginning with our fall product and believe our spring 2026, our exposure to China will be approximately 25% of our cost of goods.
Speaker Change: As we continue to diversify our sourcing base outside of China, the focus on product quality and integrity remains our top priority.
Yuji Okumura: Our strategy is to partner with several of the factories with whom we have long and successful history that have established factories outside of China. We can leverage the skill set of the team who is proficient at maintaining the quality standards for which Vince is known.
Speaker Change: Our strategy is to partner with several of the factories with whom we have long and successful history that have established factories outside of China.
Speaker Change: We can leverage the skill set of the team who is proficient and maintaining the quality standards, but which again does not.
Yuji Okumura: This concludes our remarks and I'll now turn it over to the operator to open the poll for questions. Thank you. As a reminder, if you'd like to ask a question today, that's star followed by one on your telephone keypad now.
Speaker Change: This concludes our remarks and I will now turn it over to the operator to open the call for questions.
Speaker Change: Okay.
Speaker Change: Thank you as a reminder, if you'd like to ask the questions. Dave I'll start followed by one on your telephone keypad now.
Michael Kupinski: And our first question comes from Michael Kupinski from Noble.
Moderator: And our first question comes from Michal Krupinski from Nobu, Michael Your line is open. Please go ahead.
Michael Kupinski: Michael, your line is open. Please go ahead. Thank you. And first of all, congratulations. You beat my expectations, and it looks like your second quarter are exceeding my expectations as well. So congratulations on all the efforts that you have going on there.
Michal Krupinski: Thank you and first of all congratulations on you beat my expectations and it looks like your second quarter are exceeding my expectations as well. So congratulations on that all the efforts that you have going on there.
Yuji Okumura: A couple of questions. You mentioned freight cost as a contributing factor, weighing on margins. Can you talk a little bit about trends in freight cost? And has the company shifted distribution from ocean shipping to air in light of US trade policy issues? I was just those costs are looking. Yes, sure.
Speaker Change: A couple of questions you mentioned freight cost as a contributing factor weighing on margins can you talk a little bit about trends and break free cost.
Michal Krupinski: And has the company shifted distribution from Ocean shipping to air in light of our U S. Trade policy issues. I was just wondering if you could kind of give us a framework of how.
Michal Krupinski: Those costs are looking.
Michal Krupinski: Yes, sure I can take that.
Yuji Okumura: I can take that. In Q1, as we discussed, we did air more products and that we saw the impact of that as we navigated around the timing of Chinese New Year. In terms of Q2, there has been a lot of news about starting to see increases in freight costs, which we do expect to see.
Michal Krupinski: In Q1 as we discussed.
Michal Krupinski: <unk> did add on more products.
Michal Krupinski: And that we saw the impact of that as we navigated around the timing.
Michal Krupinski: Chinese new year.
Michal Krupinski: For in terms of Q2.
Michal Krupinski: There has been a lot of news about.
Michal Krupinski: Increase in starting to see increases in freight costs, which we do expect to see and we we are navigating.
Brendan Hoffman: And we we are navigating sort of the We are navigating sort of the air and Eric Beder, Brendan Hoffman, Yuji Okumura, Vince Holding, Akiko Okuma, Yuji Okumura, Vince We were able to avoid the highest of the tariffs for the moment. Yeah, well, I think in the back half of the year, as you suggest, we've had gives us an opportunity to mitigate. Some of the, what we assume to be the tariff. Some of the discounts we've gotten from our suppliers who have been great. Some of the rebalancing of the sourcing countries. And we always do some strategic pricing increases.
Michal Krupinski: Sort of the.
Michal Krupinski: We are navigating sort of the air and.
Michal Krupinski: And boat.
Michal Krupinski: Methods, depending on the timing and we kind of for Q2.
Michal Krupinski: Great.
Michal Krupinski: Dominantly shifted that depending on how we try to navigate around the tariff announcements.
Brendan Hoffman: Announcements.
Michal Krupinski: So for Q2.
Michal Krupinski: We do still continue to see expected to see higher freight and tariff costs.
Michal Krupinski: Those impacts.
Michal Krupinski: Thanks.
Michal Krupinski: We did we did we were able to avoid.
Michal Krupinski: The highest of the tariffs for the most part.
Michal Krupinski: Got you.
Michal Krupinski: I guess, if you were looking at the third and fourth quarters would you see the impact of the trade policy issues being more felt in those quarters given the.
Michal Krupinski: You'd have a little bit of runway I guess in terms of mitigating those.
Michal Krupinski: Those costs, but can you kind of give us your thoughts just in general I know youre, not giving guidance but.
Michal Krupinski: Just any thoughts in general in terms of the cost trends and how the third and fourth quarters might be affected.
Michal Krupinski: Yeah, well I think.
Michal Krupinski: In the back half of the year as you suggest we've had it gives us an opportunity to mitigate.
Michal Krupinski: Some of the what we assumed to be the tariffs.
Michal Krupinski: With some of the discounts we've gotten from our suppliers who have been great some of the.
Michal Krupinski: A rebalancing of the sourcing countries and we always do some strategic.
Michal Krupinski: Pricing.
Michal Krupinski: Creases.
Brendan Hoffman: Really pleased that we just came off our pre-spring market, which is essentially holiday, which would be the first time we showed. Akiko Okumura, Yuji Okumura, Vince Holding, Akiko Okumura, Yuji Okumura, Akiko Okumura, Gotcha. And you had mentioned that your you had plans or have plans to raise prices. And I was just wanting to have a general idea of what those price increases are looking like. It's really, it's something we always do. We did it a little bit in the front half of the year, as I think we had mentioned. And so, you know, we just, again, given the new pricing structure, one item by item, and where we thought there was some room and maintaining the value.
Michal Krupinski: Really pleased that we just came off our pre spring market, which is essentially holiday, which will be the first time we showed.
Michal Krupinski: Kind of product with what we think tariffs will look like.
Michal Krupinski: Some of the country rebalancing in some of the pricing changes and.
Michal Krupinski: The reception was terrific and both in terms of the product, but also keeping the quality in terms of the value that they expect to come from Vince.
Michal Krupinski: Got you and you had mentioned that your you had plans or have plans to raise prices and I was just wondering if you have a general idea of what those price increases are looking like.
Michal Krupinski: Yeah.
Michal Krupinski: It's really it's something we always do we did it a little bit in the front half of the year as I think we had mentioned and so we just again given the new pricing structure.
Michal Krupinski: Item by item in.
Brendan Hoffman: Where we thought there was some room and maintain maintaining the value. So.
Brendan Hoffman: So, I don't think it will be hugely noticeable by the consumer. I think we're smart about it.
Brendan Hoffman: I don't think it will be hugely noticeable by the consumer.
Brendan Hoffman: And again, the first litmus test was the buyers from the department stores coming in and gauging their reaction, which was, it was really interesting. And it seems like, just last question, it seems like the underlying trends, as you mentioned, you know, from a consumer standpoint is looking very good. I was just wondering if those trends are a factor of some of the current fashion trends. I noticed that you introduced a line of linens and so forth that seem to get a lot of floor space in some of the stores that I've looked at. And I was just wondering if you could just talk a little bit about what is driving the consumer at this point, because the underlying trends look really positive.
Michal Krupinski: I think we're smart about it and again.
Speaker Change: First litmus test was the buyers from the department stores coming in and gauging their reaction, which was it was really a non event.
Michal Krupinski: And it seems like just the last question it seems like the underlying trends as you mentioned.
Michal Krupinski: From a consumer standpoint is looking very good I was just wondering if the.
Michal Krupinski: Those trends are a factor of some of the current fashion trends I noticed that you introduced a line of linens and so forth that seem to get a lot of floor space and some of the stores that I've looked at and I was just wondering if you could just talk a little bit about what is driving the consumer at this point because the underlying trends look really positive.
Brendan Hoffman: Yeah, so linen for sure. You hit on that, especially as the weather got warm here in the east, we saw we saw a pickup in linen. You know, it was interesting about May, which, you know, we were pleased with was that was with the delay in the pre fall receipts because of, you know, the holding stuff at port last month. So pre fall actually just gets set up today. about three weeks later than. We typically would do it, yeah, despite that. business hung in there. And I think we were able to stretch out our traditional spring assortment a little bit longer.
Brendan Hoffman: Yes.
Brendan Hoffman: So lyndon for sure you hit on that especially as the weather got warm here in the east we saw we saw a pickup in women.
Brendan Hoffman: What's interesting about May which we were pleased with was.
Brendan Hoffman: That was with the delay in the pre fall receipts because of.
Brendan Hoffman: Holding stuff at Port last month, so pre fall actually just got set up today, which is about three weeks later then.
Brendan Hoffman: We typically would do it yet despite that.
Brendan Hoffman: Business hung in there and I think we are.
Brendan Hoffman: We will stretch out our traditional spring.
Michal Krupinski: Assortment, a little bit longer and I think it just spoke to the strength of the collection around color in some of the novelty and some of the different silhouettes. So.
Brendan Hoffman: And I think it just spoke to the strength of the collection around color and some of the novelty and some of the different silhouettes. excited now that we can fully launch up pre fall. As I said, today, we launched it last week as a test in our growth store and saw great results over the weekend. So I think we did a really nice job balancing around the fact that we knew. Terrific.
Brendan Hoffman: Excited now that we can fully launch pre fall.
Brendan Hoffman: As I said today.
Michal Krupinski: We launched it last week as a test in our growth store and saw great results over the weekend. So I think we.
Michal Krupinski: Did a really nice job balancing around the fact that we knew these shipments are going to be late while we saw where tariffs landed.
Michael Kupinski: I'll let others ask questions. Thank you.
Brendan Hoffman: Terrific I'll, let others ask questions. Thank you.
Speaker Change: Thank you.
Michael Kupinski: Okay.
Brendan Hoffman: We have no further questions at this time, so I'll hand the call back to Brendan.
Speaker Change: We have no further questions at this time, so I'll hand, the call back to Brendan.
Brendan Hoffman: Okay, well we appreciate you joining us for today's call and we look forward to updating you on Q2 in September. Thanks very much.
Brendan Hoffman: Okay, well, we appreciate you joining us for today's call and we look forward to updating you on Q2 in September.
Speaker Change: Very much.
Operator: This concludes today's call. Thank you very much for your attendance.
Speaker Change: This concludes today's call. Thank you very much for your attendance you may now disconnect your lines.
Operator: You may now disconnect your lines.
Operator: [music].