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Report No. : |
341944 |
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Report Date : |
26.09.2015 |
IDENTIFICATION DETAILS
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Name : |
VINCE HOLDING CORP. |
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Registered Office : |
500 5th Avenue, New York, NY 10110 |
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Country : |
United States |
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Date of Incorporation : |
07.01.2008 |
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Legal Form : |
Public Company |
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Line of Business : |
Designs, merchandises, and sells of various contemporary fashion brand
products. |
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No. of Employees : |
498 |
RATING & COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
NOTES:
Any query related to this report can be made
on e-mail: infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – March 31, 2015
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Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
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United States |
A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
UNITED STATES - ECONOMIC OVERVIEW
The US has the most technologically powerful economy in the world, with a per capita GDP of $54,800. US firms are at or near the forefront in technological advances, especially in computers, pharmaceuticals, and medical, aerospace, and military equipment; however, their advantage has narrowed since the end of World War II. Based on a comparison of GDP measured at Purchasing Power Parity conversion rates, the US economy in 2014, having stood as the largest in the world for more than a century, slipped into second place behind China, which has more than tripled the US growth rate for each year of the past four decades.
In the US, private individuals and business firms make most of the decisions, and the federal and state governments buy needed goods and services predominantly in the private marketplace. US business firms enjoy greater flexibility than their counterparts in Western Europe and Japan in decisions to expand capital plant, to lay off surplus workers, and to develop new products. At the same time, they face higher barriers to enter their rivals' home markets than foreign firms face entering US markets.
Long-term problems for the US include stagnation of wages for lower-income families, inadequate investment in deteriorating infrastructure, rapidly rising medical and pension costs of an aging population, energy shortages, and sizable current account and budget deficits.
The onrush of technology has been a driving factor in the gradual development of a "two-tier" labor market in which those at the bottom lack the education and the professional/technical skills of those at the top and, more and more, fail to get comparable pay raises, health insurance coverage, and other benefits. But the globalization of trade, and especially the rise of low-wage producers such as China, has put additional downward pressure on wages and upward pressure on the return to capital. Since 1975, practically all the gains in household income have gone to the top 20% of households. Since 1996, dividends and capital gains have grown faster than wages or any other category of after-tax income.
Imported oil accounts for nearly 55% of US consumption and oil has a major impact on the overall health of the economy. Crude oil prices doubled between 2001 and 2006, the year home prices peaked; higher gasoline prices ate into consumers' budgets and many individuals fell behind in their mortgage payments. Oil prices climbed another 50% between 2006 and 2008, and bank foreclosures more than doubled in the same period. Besides dampening the housing market, soaring oil prices caused a drop in the value of the dollar and a deterioration in the US merchandise trade deficit, which peaked at $840 billion in 2008.
The sub-prime mortgage crisis, falling home prices, investment bank failures, tight credit, and the global economic downturn pushed the United States into a recession by mid-2008. GDP contracted until the third quarter of 2009, making this the deepest and longest downturn since the Great Depression. To help stabilize financial markets, the US Congress established a $700 billion Troubled Asset Relief Program (TARP) in October 2008. The government used some of these funds to purchase equity in US banks and industrial corporations, much of which had been returned to the government by early 2011. In January 2009 the US Congress passed and President Barack OBAMA signed a bill providing an additional $787 billion fiscal stimulus to be used over 10 years - two-thirds on additional spending and one-third on tax cuts - to create jobs and to help the economy recover. In 2010 and 2011, the federal budget deficit reached nearly 9% of GDP. In 2012, the federal government reduced the growth of spending and the deficit shrank to 7.6% of GDP.
Wars in Iraq and Afghanistan required major shifts in national resources from civilian to military purposes and contributed to the growth of the budget deficit and public debt. Through 2014, the direct costs of the wars totaled more than $1.5 trillion, according to US Government figures. US revenues from taxes and other sources are lower, as a percentage of GDP, than those of most other countries.
In March 2010, President OBAMA signed into law the Patient Protection and Affordable Care Act, a health insurance reform that was designed to extend coverage to an additional 32 million American citizens by 2016, through private health insurance for the general population and Medicaid for the impoverished. Total spending on health care - public plus private - rose from 9.0% of GDP in 1980 to 17.9% in 2010.
In July 2010, the president signed the DODD-FRANK Wall Street Reform and Consumer Protection Act, a law designed to promote financial stability by protecting consumers from financial abuses, ending taxpayer bailouts of financial firms, dealing with troubled banks that are "too big to fail," and improving accountability and transparency in the financial system - in particular, by requiring certain financial derivatives to be traded in markets that are subject to government regulation and oversight.
In December 2012, the Federal Reserve Board (Fed) announced plans to purchase $85 billion per month of mortgage-backed and Treasury securities in an effort to hold down long-term interest rates, and to keep short term rates near zero until unemployment dropped below 6.5% or inflation rose above 2.5%. In late 2013, the Fed announced that it would begin scaling back long-term bond purchases to $75 billion per month in January 2014 and reduce them further as conditions warranted; the Fed ended the purchases during the summer of 2014. In 2014, the unemployment rate dropped to 6.2%, and continued to fall to 5.5% by mid-2015, the lowest rate of joblessness since before the global recession began; inflation stood at 1.7%, and public debt as a share of GDP continued to decline, following several years of increase.
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Source
: CIA |
Company name: VINCE HOLDING CORP.
Address: 500 5th
Avenue, New York, NY 10110 - USA
Telephone: +1
212-515-2600
Fax: +1
Website: www.vince.com
Corporate ID#: 4485407
State: Delaware
Judicial form: Public Company (NYSE = VNCE)
Date incorporated: January
7, 2008
Stock: 36,775,443 shares
issued and outstanding (as of 09-01-2015)
Value: USD
0.01= par value
Name of manager: Mark
E. BRODY
Business:
Vince Holding Corp. designs, merchandises, and sells various
contemporary fashion brand products in the United States and internationally.
It operates through two segments, Wholesale and Direct-To-Consumer.
The company offers a range of women’s products, such as cashmere
sweaters, silk blouses, leather and suede leggings and jackets, dresses,
denims, tanks, T-shirts, pants, handbags, and outerwear; and men’s products
comprising T-shirts, knit and woven tops, sweaters, denim, pants, blazers,
outerwear, and leather jackets.
It also provides women’s and men’s footwear, and children’s apparel
products. The company sells its products directly to consumers through its
branded
specialty retail stores and outlet stores, as well as through Vince.com,
an e- commerce platform; and to department stores and specialty stores.
As of September 3, 2015, it operated 32 retail stores and 12 outlet stores,
as well as VINCE.com, an e-commerce site; and sold its products to consumers at
approximately 2,500 distribution locations in 44 countries.
The company was formerly known as Apparel Holding Corp. and changed its
name to Vince Holding Corp. in November 2013.
Vince Holding Corp. was founded in 2002 and is headquartered in New
York, New York.
Office
of the Foreign Assets Control (OFAC):
The company is not listed on the OFAC list.
The Specially Designated Nationals (SDN) List is a publication of OFAC
which lists individuals and organizations with whom United States citizens and
permanent residents are prohibited from doing business.
No name of foreign suppliers available.
EIN: 75-3264870
Staff: 498
Operations & branches:
At the headquarters, we
find the corporate office, on lease.
As of September 3, 2015, the Company operated 32 retail stores and 12
outlet stores.
Shareholders:
The Company is listed with
the NYSE under symbol VNCE.
As of 06-30-2015, 32% of
the stock was held by institutional and mutual fund owners, including:
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Vanguard Group, Inc. (The) |
4.53% |
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Eagle Asset Management Inc |
3.69% |
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Eagle Series Tr-Eagle Small Cap Growth Fund |
3.27% |
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Wellington Management Company, LLP |
2.77% |
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Royal Bank of Canada |
2.27% |
Management:
Mark E. BRODY, has been an Interim Chief Executive Officer of Vince
Holding Corp since September 01, 2015 and served as its Chief Financial Officer
and Treasurer from July 2015 to September 01, 2015.
Mr. Brody serves as the Managing Director and Group Chief Financial
Officer of Sun Capital Partners, Inc and based at the Boca Raton office. Mr.
Brody served as Interim Chief Financial Officer of Vince Holding Corp since
June 25, 2015. He has over 25 years of senior finance and executive management
experience. Prior to joining Sun Capital Partners, from 2001 to 2006, he served
as the Chief Financial Officer at Flight Options, LLC, where Mr. Brody managed the
financial functions of the company, including financial reporting and
accounting, as well as treasury functions comprised of cash management, debt
and equity financing, risk management, and taxation. He has board significant
experience in finance, accounting and corporate strategy development.
Prior to Flight Options, he served as the Chief Financial Officer at
Waterlink, Inc., and as an Executive Vice President and Chief Financial Officer
at Anthony & Sylvan Pools. Mr. Brody also served as the Vice President of
Finance at Essef Corporation since August 11, 1997. He served as Chief
Financial Officer and Vice President of Sudbury, Inc. since October 1994.
Mr. Brody started his career as an Auditor at Ernst & Young. He has
also served either as the Vice President of Finance or Chief Financial Officer
at manufacturing related public companies. He serves as Director of Kellwood
Holding, LLC. He has been a Director of Gordmans Stores, Inc. since October 10,
2014. He has been a Director of Vince Holding Corp since 2008 and has been its
Lead Independent Director since April 28, 2014. He served as a Director at
Exopack Holding Corp. from April 7, 2008 to June 26, 2013. He served as
Director of Kellwood Company since February 13, 2008. He is a Member of the Financial
Executives Institute and Ohio Society of CPAs.
He is a C.P.A. Mr. Brody received a B.A. degree in Accounting from Grove
City College.
Michele SIZEMORE is Vice President of Operations.
David STEFKO is the CFO.
On September 3, 2015, Vince Holding Corp. announced unaudited
consolidated earnings results for the second quarter and six months ended
August 1, 2015.
For the second quarter, the company’s net sales decreased 10.4% to
$79.993 million from $89.326 million in the second quarter of fiscal 2014.
The wholesale segment decreased 21.6% to $58.3 million and the
direct-to-consumer segment increased 44.7% to $21.7 million over the second
quarter of fiscal 2014. Comparable store sales increased 13.4%, including
e-commerce sales. Operating loss or loss from operations was $6.542 million,
compared to income from operations of $19.944 million for the second quarter of
fiscal 2014.
Loss before taxes was $8.515 million against income before income taxes
of $17.024 million a year ago. Net loss was $5.026 million, or $0.14 per basic
and diluted share, compared to net income of $10.501 million, or $0.27 per
diluted share, for the second quarter of fiscal 2014.
Excluding the inventory write-down and net management transition costs,
net income for the second quarter of fiscal 2015 was $5.203 million, or $0.14
per basic and diluted share. Excluding the secondary offering costs, net income
for the second quarter of fiscal 2014 was $10.844 million, or $0.28 per diluted
share. Excluding the inventory write-down and net management transition costs,
operating income for the second quarter of fiscal 2015 was $10.766 million.
Excluding the secondary offering costs, operating income for the second quarter
of fiscal 2014 was $20.515 million. Adjusted income before income taxes was
$8.793 million against $17.595 million a year ago. Capital expenditures for the
second quarter of fiscal 2015 totaled $4.8 million, $2.4 million of which was
primarily attributable to new stores and shop-in-shop build-outs.
For the six months, the company reported net sales of $139.835 million
against $142.778 million a year ago. Loss from operations was $1.441 million
against income from operations of $25.151 million a year ago. Loss income
before taxes was $4.871 million against income before taxes of $19.331 million
a year ago. Net loss was $2.572 million or $0.07 per basic and diluted share
against net income of $11.885 million or $0.31 per diluted share a year ago.
Adjusted income from operations was $15.867 million against $25.722 million a
year ago. Adjusted income before income taxes was $12.437 million against
$19.902 million a year ago. Adjusted net income was $7.657 million or $0.20 per
diluted share against $12.228 million or $0.32 per diluted share a year ago. The
company updated earnings guidance for the year 2015. For the year, the company
is adjusted to exclude charges associated with the write-down of excess
inventory and aged product to expected net realizable value and the net
management transition costs related to executive severance and related costs as
reported in the second quarter of fiscal 2015. The guidance also excludes
potential additional costs related to the ongoing management transition.
For fiscal 2015, the company now expects to report total net sales
between in the range of $285 million to $295 million, down from a prior outlook
of $340 million to $350 million. The reduced sales expectation is primarily the
result of the aforementioned issues in the domestic wholesale segment, largely
in the off-price channel, as well as the recent softer selling trends in the
company's direct-to-consumer channel. Additionally, this incorporates sales
from the opening of 11 new retail stores and comparable sales growth, inclusive
of e-commerce sales, in the mid-single digit range. Gross margin expected to
decrease between 140 basis points and 190 basis points, as compared to last
year, due primarily to increased markdowns across segments and expected
assistance to wholesale partners. This excludes the $14.4 million inventory
write-down in the second quarter. Adjusted diluted earnings per share expected
to be in the range of $0.31 to $0.37 excluding the adjustments net of tax.
Spend $18 million to $20 million in capital expenditures, consistent with prior
guidance. The company expects third quarter 2015 comparable sales to be in the
low to mid-single-digit negative range.
The company plans to incorporate 11 new retail stores for the fiscal
year 2015.
On attachment:
- 10K 2014 (fiscal year ending 01-2015)
- 2nd 10Q 2015
Banks: Bank of America
Wells Fargo Bank
JPMorgan Chase Bank
Legal filings
& complaints:
As of today date, there is no legal filing pending with the Courts.
Secured debts
summary (UCC):
None