Vince Holding Corp (NYSE:VNCE) Q2 2020 Earnings Conference Call - Final Transcript

Sep 14, 2020 • 04:30 pm ET

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Vince Holding Corp (NYSE:VNCE) Q2 2020 Earnings Conference Call - Final Transcript

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Executive
David Stefko

Despite the unprecedented events that have unfolded, the Vince brand aesthetic continues to fit well with our customers' desire for effortless luxury, combined with elegant casual comfort, which is the epitome of the Vince brand. There has been a clear appetite for casual luxury across categories that are well suited for a stay-at-home lifestyle.

In sweaters and certain other knit classifications, we have been able to chase business to support the strong demand for these styles. For fall, we are continuing to emphasize casual luxury and will leverage our replenishment capabilities to continue to chase product, based on customer demand. We will also be launching extended sizes on vince.com at the end of September. We see this as an untapped opportunity, as we believe this is an underserved market, and there is an appetite for casual luxury based on feedback from our wholesale partners.

We believe that our brands's aesthetic within the contemporary luxury space gives us a distinct competitive advantage as demonstrated by the over 60% growth we saw in vince.com as well as market share gains we saw at our wholesale partners. Vince was a top-performing women's and men's contemporary brand and volume for the August Nordstrom anniversary sale with best ever sell-throughs. We are excited about the signal these results send as it relates to demand for our brand at Nordstrom.

We are also excited to share that this fall, we expanded our wholesale presence with the launch of our collection on bloomingdales.com as well as indoors at select locations. Bloomingdale's represents another great partnership opportunity for events, given how their customer base aligns with our brands' demographics. We will continue to evaluate potential partnerships with both brick-and-mortar and e-commerce sites that are brand appropriate. Our marketing efforts will support our offering with a continued emphasis on the stay-at-home lifestyle. We will host digital events, including a test of a new virtual collection walk-through service, which allows us to showcase product currently in stores while adhering to social distancing guidelines.

Influencer collaborations remain an important component of our marketing strategy as we seek partners that have a large following. We will also work with our wholesale partners to increase our reach through product and personalized marketing. For holiday, our focus will be on a lifestyle in or around the home, as we plan to host or attend small gatherings during the holiday season. As we plan our strategy for the holiday season, we are evaluating the right balance of promotional and brand messaging, factoring in the expectation for a highly promotional environment. On the international front, we are also showing encouraging progress. The momentum in our business pre-pandemic has fostered great relationship with our partners, which includes several regional partners and over 300 specialty accounts who have continued to desire our product as they reopen their stores.

In Asia, we are encouraged with the trends we're seeing in Mainland China and Korea. Similarly in the Europe, we are pleased to see early signs of recovery as stores