XML 32 R19.htm IDEA: XBRL DOCUMENT v3.22.2.2
Segment Financial Information
 9 Months Ended
Oct. 29, 2022
Segment Reporting [Abstract]  
Segment Financial Information

Note 13. Segment Financial Information

The Company has identified three reportable segments, as further described below. Management considered both similar and dissimilar economic characteristics, internal reporting and management structures, as well as products, customers, and supply chain logistics to identify the following reportable segments:

•
Vince Wholesale segment—consists of the Company’s operations to distribute Vince brand products to major department stores and specialty stores in the United States and select international markets;
•
Vince Direct-to-consumer segment—consists of the Company’s operations to distribute Vince brand products directly to the consumer through its Vince branded full-price specialty retail stores, outlet stores, e-commerce platform and its subscription service Vince Unfold; and
•
Rebecca Taylor and Parker segment—consists of the Company’s operations to distribute Rebecca Taylor and Parker brand products to high-end department and specialty stores in the U.S. and select international markets, directly to the
consumer through their own branded e-commerce platforms and Rebecca Taylor retail and outlet stores, and through its subscription service Rebecca Taylor RNTD.

On September 12, 2022, the Company announced its decision to wind down the Rebecca Taylor business. See Note 2 “Wind Down of Rebecca Taylor Business” for further details.

The accounting policies of the Company’s reportable segments are consistent with those described in Note 1 to the audited consolidated financial statements of VHC for the fiscal year ended January 29, 2022 included in the 2021 Annual Report on Form 10-K. Unallocated corporate expenses are related to the Vince brand and are comprised of selling, general, and administrative expenses attributable to corporate and administrative activities (such as marketing, design, finance, information technology, legal and human resource departments), and other charges that are not directly attributable to the Company’s Vince Wholesale and Vince Direct-to-consumer reportable segments. Unallocated corporate assets are related to the Vince brand and are comprised of the carrying values of the Company’s goodwill and tradename, deferred tax assets, and other assets that will be utilized to generate revenue for the Company’s Vince Wholesale and Vince Direct-to-consumer reportable segments.

Beginning with the fourth quarter of fiscal 2021, the Company changed the allocation methodology for certain corporate operational expenses and assets between Vince Wholesale and Vince Direct-to-consumer segments. The prior period has been updated to conform to the current allocation methodology. These changes did not impact the Company’s previously reported consolidated financial results.

Summary information for the Company’s reportable segments is presented below.

 

(in thousands)

 

Vince Wholesale

 

 

Vince Direct-to-consumer

 

 

Rebecca Taylor and Parker

 

 

Unallocated Corporate

 

 

Total

 

Three Months Ended October 29, 2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Sales (1)

 

$

55,023

 

 

$

34,651

 

 

$

8,890

 

 

$

—

 

 

$

98,564

 

Income (loss) before income taxes (2)

 

 

14,352

 

 

 

696

 

 

 

(13,155

)

 

 

(13,744

)

 

 

(11,851

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended October 30, 2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Sales (3)

 

$

42,636

 

 

$

35,722

 

 

$

9,092

 

 

$

—

 

 

$

87,450

 

Income (loss) before income taxes

 

 

14,394

 

 

 

3,715

 

 

 

(3,121

)

 

 

(14,891

)

 

 

97

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended October 29, 2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Sales (1)

 

$

135,179

 

 

$

103,633

 

 

$

27,322

 

 

$

—

 

 

$

266,134

 

Income (loss) before income taxes (2)

 

 

37,312

 

 

 

(723

)

 

 

(20,124

)

 

 

(42,571

)

 

 

(26,106

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended October 30, 2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Sales (3)

 

$

104,605

 

 

$

91,636

 

 

$

27,415

 

 

$

—

 

 

$

223,656

 

Income (loss) before income taxes

 

 

34,364

 

 

 

6,482

 

 

 

(7,955

)

 

 

(41,065

)

 

 

(8,174

)

 

(in thousands)

 

Vince Wholesale

 

 

Vince Direct-to-consumer

 

 

Rebecca Taylor and Parker

 

 

Unallocated Corporate

 

 

Total

 

October 29, 2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Assets

 

$

101,239

 

 

$

104,679

 

 

$

20,092

 

 

$

123,271

 

 

$

349,281

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

January 29, 2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Assets

 

$

64,502

 

 

$

108,019

 

 

$

38,825

 

 

$

125,881

 

 

$

337,227

 

(1) Net sales for the Rebecca Taylor and Parker reportable segment for the three and nine months ended October 29, 2022 consisted of $4,205 and $12,985 through wholesale distribution channels and $4,685 and $14,337 through direct-to-consumer distribution channels.

(2) Rebecca Taylor and Parker reportable segment includes a non-cash impairment charge of $2,566, of which $1,700 is related to the Rebecca Taylor tradename and $866 is related to property and equipment for the nine months ended October 29, 2022. The three and nine months ended October 29, 2022 also includes charges associated with the wind-down of the Rebecca Taylor business. See Note 2 "Wind Down of Rebecca Taylor Business" for additional information.

(3) Net sales for the Rebecca Taylor and Parker reportable segment for the three and nine months ended October 30, 2021 consisted of $5,171 and $17,316 through wholesale distribution channels and $3,921 and $10,099 through direct-to-consumer distribution channels.