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, $10 price target and projections for Vera Bradley after the company completed their New Day relaunch with changes to the outlet store channel yesterday.</li><li>With outlet locations representing approximately 65% of the company's stores, the channel is a crucial piece of the company's business model.</li><li>Unlike the complete makeover experienced by the company's main line stores, we view the shifts at the Vera Bradley outlets, which include new signage, launch of faux leather lines, a collection of Disney offerings specifically made for the outlet channel and lesser dependence on apparel, as more evolutionary and, frankly, able to drive stronger results for the outlet channel almost immediately.</li></ul>

We are reiterating our Buy rating, $10 price target and projections for Vera Bradley after the company completed their New Day relaunch with changes to the outlet store channel yesterday.With outlet locations representing approximately 65% of the company's stores, the channel is a crucial piece of the company's business model.Unlike the complete makeover experienced by the company's main line stores, we view the shifts at the Vera Bradley outlets, which include new signage, launch of faux leather lines, a collection of Disney offerings specifically made for the outlet channel and lesser dependence on apparel, as more evolutionary and, frankly, able to drive stronger results for the outlet channel almost immediately.

VRA: Snapping the Store: New Day for the Outlets, Reiterate Buy, $10 PT