NEW YORK — Filing its first quarterly report since becoming a public company on Nov. 22, Vince Holding Corp. was clearly the darling and double-digit percent contributor in Kellwood Holding Corp.’s umbrella of brands.
For the third quarter ended Nov. 2, Vince said sales grew 11.4 percent to $85.8 million from $77 million in the same year-ago quarter. The company cited additional volume from existing wholesale partners as well as new ones, plus an increase in the number of retail stores, as a few of the main reasons for the growth.
The results also show that Vince contributed 40.1 percent of Kellwood’s revenues in the period.
On an adjusted basis, Vince’s earnings before interest, taxes, depreciation and amortization rose 14.2 percent to $18.2 million in the third quarter. It also accounted for slightly less than 80 percent of Kellwood’s total segment EBITDA. Vince’s adjusted EBITDA as a percentage of sales rose to 21.2 percent in the third quarter of 2013 versus 20.7 percent in the comparable 2012 period.
Stifel analyst Richard Jaffe said Vince’s outlook is “favorable, in our opinion, given its trend-right, attractive and broadly appealing product and very good visibility for sales and earnings growth potential.”
Kellwood’s overall revenues in the quarter, prior to Vince’s IPO were up 5.2 percent to $213.9 million from $203.4 million.
The net loss for the Kellwood business units prior to the IPO was $2.4 million, down from a $14.9 million loss in the prior-year period. The figures include costs for Vince’s transition to a public company of $3.2 million in last year’s quarter and $3.9 million in the 2012 quarter.
For the nine months, Vince said sales rose 19.6 percent to $200.4 million, while Kellwood’s volume, including Vince, was up 10.5 percent to $577.9 million.
Following the IPO, in which Vince raised $200 million, the company entered into a new $175 million senior secured term loan credit facility with Bank of America as administrative agent; J.P. Morgan Chase Bank and Merrill Lynch, Pierce, Fenner & Smith Inc. as joint lead arrangers, and Cantor Fitzgerald as documentation agent. According to the filing, the new term loan facility will mature on Nov. 27, 2019.
In addition, Vince entered into a new senior secured revolving credit facility with Bank of America as administrative agent. The quarter report said the revolving credit facility provides for a line of credit of up to $50 million maturing on Nov. 27, 2018, and also provides for a letter of credit sublimit of $25 million (plus any increase in aggregate commitments) and for an increase in aggregate commitments of up to $20 million.
Kellwood acquired Vince in 2006, and was subsequently acquired by Sun Capital Partners in 2008 for an aggregate consideration of $955.4 million, including the assumption of debt, in a cash tender offer. Following Vince’s IPO, Sun retains a 68.1 percent stake, or 24.7 million shares, in Vince.
Vince’s apparel mix is still dominated by women’s at 85 percent and men’s at just 15 percent. Categories outside of apparel include footwear; accessories, such as handbags and small leather goods, which are set to launch in 2015. The company is planning for store expansion, with a goal of 100 freestanding stores in the U.S., up from the current store count of 27. On the agenda is a goal of seven to eight store openings a year over the next 10 years.
Shares of Vince fell 2.1 percent to $29.32 in trading on the New York Stock Exchange.
“Azzedine has been one of the biggest influences in my life. He has always been such a strong, loving, fatherly figure to me. I call him Papa. His designs are indescribably unique, they are pieces of art. He knew how to make the female form look its loveliest. I have so many memories of him; my favorite might be during my first show with him in Paris. He liked me and he wanted to help me get more work. He called all his friends at Kenzo and Comme des Garcons, and asked them to book me. They said, ‘But she can’t walk!’ And he said, ‘but she has such a great ass!' His friendship and support has been the great privilege of my career. I can't imagine life without him. Repose en paix mon Papa.” - @stephanieseymour tells @wwd. #wwdfashion (📷: @steveeichner) #alaia #azzedinealaia
Azzedine Alaïa, flanked by two of his closest friends, models Stephanie Seymour and Naomi Campbell.
He designed Seymour’s dress for her 1995 wedding to Peter Brant, and treated Campbell (who famously called him Papa), like a daughter. For more on the legendary designer, tap the link in bio. #wwdfashion #alaia #azzedinealaia
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Azzedine Alaïa, one of the most iconic couturiers of the modern era whose body-con designs defined Eighties fashion, has died in Paris. The diminutive Tunisian-born designer, known for his structured knitted dresses with fitted waists and impeccably cut, figure-hugging second skin silhouettes was deeply admired by his peers, and counted supermodel Naomi Campbell - his adoptive daughter - among his inner circle, one of a gang of glamazons including Farida Khelfa, Carla Bruni and Stephanie Seymour who became ambassadors of his style. (📷: Alexandre Guirkinger) #wwdblast