Vince Holding Corp (NYSE:VNCE) Q2 2020 Earnings Conference Call - Final Transcript
Sep 14, 2020 • 04:30 pm ET
[Operator Instructions]. Our first question is from Dana Telsey with Telsey Advisory Group. Your line is open.
Good afternoon, everyone. Hope everyone is safe and healthy. Dave, as you think about the inventory levels at the end of the second quarter, how much of that would be pack and hold maybe for the spring season or future seasons? How much of it and how do you see inventory progressing throughout the balance of the year? And then also, I've seen the Bloomingdale's partnership that now you're looking at, how do you see that impacting the wholesale business level of promotions being the same? How many stores will you be in? And are there other partners you're looking to expand with? Thank you.
Okay. Thanks, Dana. Hope you're doing well. From an inventory perspective, a lot of the increase in the inventory as we set a seasonal inventory, obviously, it comes from the spring, summer and pre-fall seasons. We do believe that the product, because of the cutbacks in the department stores has not had the exposure in the marketplace. And so, we'll be viewed to some degree as newness next year. And there are some items that would be -- applicable to the fall season that we're able to move into fall production and reduce our development in some of those seasons.
So from that level, we see our ability to work through that. As we get into our ordering a product for pre-spring and as you probably were a spring market just started last week for Vince and this week for Rebecca Taylor, we are able, obviously, to match our buying more closely to the order patterns that we are seeing. And with the performance of the brand durring, for instance, the Nordstrom anniversary event, how we've been doing from an e-com perspective, in our wholesale partners, we believe as they've been managing through their inventories to get them back in line, they will now be opening up their open-to-buy dollars and that we've proven that we deserve our fair share of those dollars. So, that's why we believe, overtime, we're comfortable that we can work through these inventory levels.
As far as Blooming Dales, we just launched on bloomingdales.com in a select few stores. It's new. Everything is going well. We don't see any change in the promotionality because we're in Bloomingdale's, more so driven by the needs in the marketplace and how the consumer is responding. So, we're very comfortable with the Blooming Dales relationship so far. We are in the process of getting on dropship with them. Dropship in this environment is a key driver for everyone. And we do have dropship capabilities at other wholesale partners, and we're in the process of establishing that with Blooming Dales also. And as far as your last question, I mean a comment on other partners, we're open to distribution to other partners. We will, at that time, look at the environment, not just how they fit the Vince brand,