Equity Research Focusing on the Consumer Sector, Small Cap Consumer Research

Small Cap Consumer Research

Equity research on small cap consumer names.

Equity Research Focusing on the Consumer Sector

Small Cap Consumer Research, LLC is a leading company-sponsored equity research provider focusing on the consumer sector (apparel, brand licensing and specialty retailing segments).

Equity Bottom-Up

<ul><li>We are reiterating our Buy rating and $10 price target, leaving our FY25 EPS projection unchanged and raising our FY26 EPS to $0.68 (from $0.65) after Vera Bradley announced lower than Street consensus 1Q results, but reiterated FY25 guidance and provided a compelling overview of the upcoming shifts from the Project Restoration launch in mid-July.</li><li>As we have previously stated, the period before the launch of Project Restoration was going to be lumpy and 1Q results proved our thesis.</li><li>That said, with the company remaining cash-rich, aggressively managing inventories and expenses and with the launch of Project Restoration less than a month away, we believe the investor reaction to 1Q results is, at best, short-sighted and offers a highly compelling entry point for VRA, as the company shifts to a growth mode with a new product assortment, new store look and compelling business model.</li></ul>

We are reiterating our Buy rating and $10 price target, leaving our FY25 EPS projection unchanged and raising our FY26 EPS to $0.68 (from $0.65) after Vera Bradley announced lower than Street consensus 1Q results, but reiterated FY25 guidance and provided a compelling overview of the upcoming shifts from the Project Restoration launch in mid-July.As we have previously stated, the period before the launch of Project Restoration was going to be lumpy and 1Q results proved our thesis.That said, with the company remaining cash-rich, aggressively managing inventories and expenses and with the launch of Project Restoration less than a month away, we believe the investor reaction to 1Q results is, at best, short-sighted and offers a highly compelling entry point for VRA, as the company shifts to a growth mode with a new product assortment, new store look and compelling business model.

VRA: 1Q Review; ST Investor Focus Offers Compelling Entry Point; Reiterate Buy