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Segment and Geographical Financial Information
 12 Months Ended
Feb. 01, 2025
Segment Reporting [Abstract]  
Segment and Geographical Financial Information

Note 13. Segment and Geographical Financial Information

The Company has identified two reportable segments based on the information used by its chief operating decision maker (“CODM”). The CODM has been identified as the Chief Executive Officer. 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.

As a result of the completion of the wind down and sale (see Note 2 "Recent Transactions"), and the determination by the CODM that Parker would not be considered in the Company’s future operating plans, Rebecca Taylor and Parker is no longer an operating segment of the Company. The financial results of the historical Rebecca Taylor and Parker reportable segment are included as an other reconciling item in the table below.

The accounting policies of the Company's reportable segments are consistent with those described in Note 1 "Description of Business and Summary of Significant Accounting Policies."

The Company’s CODM evaluates segment performance based on several factors, including Income before equity in net income of equity method investment. The CODM uses Income before equity in net income of equity method investment as the key performance measure of segment profitability because it excludes the impact of certain items that our CODM believes do not directly reflect our underlying operations, including the impact of income taxes and equity in net income of equity method investment. The CODM also considers budget-to-actual and period-over-period variances for this performance measure when making decisions about the allocation of operating and capital resources to each segment. Unallocated corporate expenses 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, including interest expense, that are not directly attributable to the Company's Vince Wholesale and Vince Direct-to-consumer reportable segments. Unallocated corporate assets are comprised of the carrying values of the Company's goodwill, equity method investment and other assets that will be utilized to generate revenue for the Company's Vince Wholesale and Vince Direct-to-consumer reportable segments. As the Company’s goodwill is not allocated to the Company’s reportable segments in the measure of segment assets regularly reported to and used by our CODM, the corresponding impairment charge associated with goodwill is not reflected in the operating results of the Company’s reportable segments.

A summary of financial information by reportable segment is as follows:

 

(in thousands)

 

Vince Wholesale

 

 

Vince Direct-to-consumer

 

 

Total

 

Fiscal Year 2024

 

 

 

 

 

 

 

 

 

Net Sales

 

$

165,349

 

 

$

128,103

 

 

$

293,452

 

 

 

 

 

 

 

 

 

 

 

Cost of Products Sold*

 

 

98,800

 

 

 

49,473

 

 

 

148,273

 

Staff and Personnel

 

 

4,218

 

 

 

23,796

 

 

 

28,014

 

Occupancy

 

 

380

 

 

 

26,115

 

 

 

26,495

 

Marketing and advertising

 

 

547

 

 

 

9,420

 

 

 

9,967

 

Other segment items(1)

 

 

3,499

 

 

 

16,329

 

 

 

19,828

 

Total segment income before income taxes and equity in net income of equity method investment

 

 

57,905

 

 

 

2,970

 

 

 

60,875

 

Unallocated Corporate(4)

 

 

 

 

 

 

 

 

(91,909

)

Rebecca Taylor and Parker(2)

 

 

 

 

 

 

 

 

7,633

 

Total loss before income taxes and equity in net income of equity method investment

 

 

 

 

 

 

 

$

(23,401

)

 

 

 

 

 

 

 

 

 

 

Fiscal Year 2023

 

 

 

 

 

 

 

 

 

Total Segment Net Sales

 

$

149,603

 

 

$

143,096

 

 

$

292,699

 

Rebecca Taylor and Parker(3)

 

 

 

 

 

 

 

 

191

 

Total Net Sales

 

 

 

 

 

 

 

 

292,890

 

 

 

 

 

 

 

 

 

 

 

Cost of Products Sold*

 

 

97,742

 

 

 

61,856

 

 

 

159,598

 

Staff and Personnel

 

 

3,860

 

 

 

26,400

 

 

 

30,260

 

Occupancy

 

 

249

 

 

 

23,223

 

 

 

23,472

 

Marketing and advertising

 

 

805

 

 

 

9,147

 

 

 

9,952

 

Other segment items(1)

 

 

3,531

 

 

 

16,696

 

 

 

20,227

 

Total segment income before income taxes and equity in net income of equity method investment

 

 

43,416

 

 

 

5,774

 

 

 

49,190

 

Unallocated Corporate(4)

 

 

 

 

 

 

 

 

(31,127

)

Rebecca Taylor and Parker(3)

 

 

 

 

 

 

 

 

2,443

 

Total income before income taxes and equity in net income of equity method investment

 

 

 

 

 

 

 

$

20,506

 

 

 

 

 

Fiscal Year

 

 

 

2024

 

 

2023

 

Depreciation and Amortization:

 

 

 

 

 

 

  Vince Wholesale

 

$

119

 

 

$

248

 

  Vince Direct-to-Consumer

 

 

3,005

 

 

 

2,931

 

Total Segment Depreciation and Amortization

 

 

3,124

 

 

 

3,179

 

  Unallocated Corporate

 

 

882

 

 

 

1,760

 

Total Depreciation and Amortization

 

 

4,006

 

 

 

4,939

 

 

 

 

 

 

 

 

Capital Expenditures:

 

 

 

 

 

 

  Vince Wholesale

 

 

530

 

 

 

127

 

  Vince Direct-to-Consumer

 

 

3,274

 

 

 

1,191

 

Total Segment Capital Expenditures

 

 

3,804

 

 

 

1,318

 

  Unallocated Corporate

 

 

428

 

 

 

142

 

Total Capital Expenditures

 

 

4,232

 

 

 

1,460

 

 

 

 

 

 

 

 

Total Assets:

 

 

 

 

 

 

  Vince Wholesale

 

 

68,488

 

 

 

51,489

 

  Vince Direct-to-Consumer

 

 

100,114

 

 

 

87,648

 

Total Segment Assets

 

 

168,602

 

 

 

139,137

 

  Unallocated Corporate

 

 

54,133

 

 

 

86,012

 

Total Assets

 

 

222,735

 

 

 

225,149

 

 

(1) Other segment items primarily include various third party expenses, banking fees, depreciation and amortization, supplies, and commissions.

(2) Activity for the Rebecca Taylor and Parker reconciling item for fiscal 2024 primarily consists of the gain recognized on the sale of Rebecca Taylor. See Note 2 "Recent Transactions" for further information.

(3) Activity for Rebecca Taylor and Parker reconciling item for fiscal 2023 consisted of $191 of sales through wholesale distribution channels of residual revenue contracted prior to the sale of the Rebecca Taylor tradename. In addition, activity also includes a $765 gain associated with the sale of the Parker tradename, a net benefit of $1,750 from the wind down of the Rebecca Taylor business, and $150 of transaction related expenses associated with the sale of the Parker tradename. See Note 2 "Recent Transactions" for further information.

(4) Unallocated corporate includes the goodwill impairment charge of $31,973 for fiscal 2024 and the $32,043 gain related to the sale of the Vince intellectual property and certain related ancillary assets for fiscal 2023. See Note 3 "Goodwill and Intangible Assets" and Note 2 "Recent Transactions" for further information.

* Cost of Products Sold for fiscal 2024 includes royalty expenses of $10,106 and $3,857 for the Wholesale and Direct-to-consumer segments, respectively. Cost of Products Sold for fiscal 2023 includes royalty expenses of $6,388 and $3,098 for the Wholesale and Direct-to-consumer segments, respectively.

The Company is domiciled in the U.S. and as of February 1, 2025, had no significant international subsidiaries and therefore substantially all of the Company's sales originate in the U.S. As a result, net sales by destination are not provided. Additionally, substantially all long-lived assets, including property and equipment, are located in the U.S.