Vince Holding Corp (NYSE:VNCE) Q2 2020 Earnings Conference Call - Final Transcript
Sep 14, 2020 • 04:30 pm ET
but also how they would impact our existing wholesale partners. So, anyone we would expand with, we would consider the current environment of customers and the impact on that.
And the stores that you've reopened so far, how are you doing on your sales recapture rate? What is that looking like? And the 60% increase in e-commerce sales was, obviously, an acceleration from the 30% increase in the first quarter. How much of that is your own site, how much of that is wholesale partner sites?
Well, the 60% I referenced is just vince.com. So that's our own site. But we saw -- even with the Nordstrom anniversary sale, a greater percentage of that business come through e-commerce and dropship. From a store perspective, traffic, as we open stores, was anemic at best. We have seen traffic in our stores and getting more below the 60% down level. And we are seeing improvements week-over-week over the last four weeks to six weeks. But we are seeing conversion. Conversion is more than double what conversion was before. So obviously, the person is coming to shop is a buyer and looking to spend. So, the trends are good, and we expect the trends to continue.
Got it. And can you give any update on the health of the balance sheet and how you're thinking of the balance sheet now? And also an update on the inventory reserves and any adjustments there?
Yes. I mean, like every business now, we're evaluating our ability to move through seasons. As you know, as we all entered into COVID, we had older inventory to sell to the off-price channel, which didn't move. So at that time -- so again we're evaluating -- we're in the cycle, everything will fall. So we have increased inventory reserves like most. As far as the balance sheet goes, we believe we have adequate liquidity and availability. We also continue to work on a daily basis with our vendors, with our inventory inflow. We're very pleased with the work we've done with our landlords and everybody in that case, understanding that we have to get through this together. We have a great relationship with our banks. And we are very diligent on how we're managing our spending day-to-day. And so, all those levers continue to be available to us, and we continue to manage them. So, hope that answers your question.
And perspective on holiday and how you're planning holiday?
Well, as we look through holiday, like many, we all understand there's going to be maybe -- one of the pressure points is going to be the Fedexes and UPSes of the world from a delivery perspective. So we like many are looking at does holiday need to start sooner. Are we going to have to entice the consumer to shop early we're having discussions with our wholesale partners around their plans and expectations from us. So, we can make sure that we can service them, and we're working through our