Ladies and gentlemen, thank you for all joining. I would like to welcome you to the Vince Q3 2022 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. [Operator Instructions] Thank you. I will now turn the conference over to your host Amy Levy. Please go ahead, when you are ready, Amy.

Thank you and good morning, everyone. Welcome to Vince Holding Corp’s third quarter fiscal 2022 results conference call. Hosting the call today is Jack Schwefel, Chief Executive Officer, and Dave Stefko, Chief Financial Officer. Before we begin, let me remind you that certain statements made on this call may constitute forward-looking statements, which are subject to risks and uncertainties that could cause actual results to differ from those that the company expect. Those risks and uncertainties are described in today's press release and in the company's SEC filings, which are available on the company's website. Investors should not assume that statements made during the call will remain operative at a later time and the company undertakes no obligation to update any information discussed on the call. Following today's remarks, there will be no question-and-answer session. Now, I'll turn the call over to Jack.

Thank you, Amy, and thank you everyone for joining us this morning. I will begin with an overview of our third quarter performance focusing on our Vince business as we have continued to execute the wind down of our Rebecca Taylor business that we announced in our Q2 call. Similar to others, the third quarter was challenged by macro-related headwinds as our consumer continued to contend, resulting in inflationary pressures and higher interest rates. And the retail sector increased its promotional activity as many, including ourselves, took aggressive actions to reduce inventory balances. With our strategic decision to exit the Rebecca Taylor business, we have realigned our research to focus on the current scale of our business, and are continuing to evaluate our processes and cost to drive further efficiencies and enhance disciplines across our organization. We believe through the actions we are taking today, we will be better positioned for long-term profitable growth. Now turning to our Q3 results more specifically, our top line performance headwinds was driven by our wholesale channel where we saw nice reception across our men's and women's assortment, particularly as we transition into the cooler fall season. The performance offsets a slight decline in our direct-to-consumer results, which continue to be impacted by the normalization of e-commerce traffic trend. In Q3, we launched our new pass program for men's, expanding our assortment beyond lounge and stretch, setting the foundation for continued growth with our men's business. In addition, in men's, we saw strength in [layering] (ph) pieces with items such as our shirt jacket and long sleeved nets. In both men's and women's, we saw strength in our sweaters, particularly as the quarter progressed and customers focused on buying out win our products. In addition, we have seen positive initial response to our cold…

Thanks Jack. As Jack discussed our third quarter financial results were impacted by the wind down of the Rebecca Taylor business, as well as aggressive actions we have taken to reduce our events inventory levels, especially in light of the continued challenging macro environment. With respect to Rebecca Taylor, the business contributed $8.9 million in net sales for the quarter and we incurred charges of $11.1 million, related to the wind down activity, including the write-down of inventory, as well as accelerated operating lease amortization, accelerated depreciation and amortization, severance and other costs. We expect the wind down of Rebecca Taylor to be completed by the end of our fourth quarter. Turning now to our results in more detail. Total company net sales for the third quarter increased 12.7% to $98.6 million, compared to $87.5 million in the third quarter of fiscal 2021. The year-over-year increase was driven entirely by the Vince brand, which delivered third quarter consolidated net sales of $89.7 million, compared to $78.4 million in the same prior year period. The 14.4% increase was driven by our wholesale segment, which saw net sales increased 29.1%, exceeding our third quarter 2019 sales levels and offset the 3% decrease in our Vince direct-to-consumer segment sales as the continued normalization of e-commerce trends offset growth in our retail stores. Gross profit in the third quarter was $29.8 million or 30.2% of net sales, this compares to $42.1 million or 48.2% of net sales in the third quarter of last year. The decrease in the gross margin rate was primarily driven by the wind down of Rebecca Taylor business, which negatively impacted third quarter 2022 gross margin rate by 800 basis points. Also contributing to the decline in gross margin rate, as well was an unfavorable year-over-year adjustment to inventory reserves…

Thank you all for joining. That does conclude today's call. Please have a lovely day, and you may now disconnect your line. End of Q&A: