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Segment Financial Information
 3 Months Ended
Apr. 29, 2023
Segment Reporting [Abstract]  
Segment Financial Information

Note 12. 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—consisted 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. On December 22, 2022, the Company's indirectly wholly owned subsidiary, Rebecca Taylor, Inc., completed the sale of its intellectual property and certain related ancillary assets to RT IPCO, LLC, an affiliate of Ramani Group. Substantially all Rebecca Taylor inventory was liquidated as of January 28, 2023. Additionally, all Rebecca Taylor retail and outlet stores operated by the Company were closed as of January 28, 2023 and the e-commerce site operated by the Company ceased in December 2022.

On February 17, 2023, the Company's indirectly wholly owned subsidiary, Parker Lifestyle, LLC, completed the sale of its intellectual property and certain related ancillary assets to Parker IP Co. LLC, an affiliate of BCI Brands.

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 28, 2023 included in the 2022 Annual Report on Form 10-K. Unallocated corporate expenses are related to the Vince brand and are comprised of SG&A 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 other assets that will be utilized to generate revenue for the Company's Vince Wholesale and Vince Direct-to-consumer reportable segments. In addition, as of April 29, 2023, unallocated corporate assets includes assets held for sale, which is comprised of the Vince brand tradename and Vince customer relationships. Prior to its classification as assets held for sale, the Vince customer relationships were included within the Vince Wholesale segment.

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 April 29, 2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Sales (1)

 

$

32,467

 

 

$

31,508

 

 

$

81

 

 

$

—

 

 

$

64,056

 

Income (loss) before income taxes (2) (3)

 

 

8,571

 

 

 

1,101

 

 

 

1,192

 

 

 

(16,530

)

 

 

(5,666

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended April 30, 2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Sales (4)

 

$

33,464

 

 

$

34,782

 

 

$

10,130

 

 

$

—

 

 

$

78,376

 

Income (loss) before income taxes

 

 

10,163

 

 

 

(802

)

 

 

(1,484

)

 

 

(15,046

)

 

 

(7,169

)

 

(in thousands)

 

Vince Wholesale

 

 

Vince Direct-to-consumer

 

 

Rebecca Taylor and Parker

 

 

Unallocated Corporate

 

 

Total

 

April 29, 2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Assets

 

$

66,116

 

 

$

94,083

 

 

$

23

 

 

$

123,872

 

 

$

284,094

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

January 28, 2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Assets

 

$

83,134

 

 

$

95,499

 

 

$

981

 

 

$

123,731

 

 

$

303,345

 

________

(1) Net sales for the Rebecca Taylor and Parker reportable segment for the three months ended April 29, 2023 consisted of $81 through wholesale distribution channels of residual revenue contracted prior to the sale of the Rebecca Taylor tradename.

(2) Rebecca Taylor and Parker reportable segment includes a $765 gain associated with the sale of the Parker tradename, a net benefit of $624 from the wind down of the Rebecca Taylor business, primarily related to the release of operating lease liabilities as a result of lease terminations, and $150 of transaction related expenses associated with the sale of the Parker tradename. See Note 1 "Description of Business and Basis of Presentation - (A) Description of Business" for further information.

(3) Unallocated Corporate includes $2,741 of transaction related expenses associated with the Asset Sale.

(4) Net sales for the Rebecca Taylor and Parker reportable segment for the three months ended April 30, 2022 consisted of $4,874 through wholesale distribution channels and $5,256 through direct-to-consumer distribution channels.