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 as we review our mail line store visits for August.</li><li>August represents the first monthly store tours where the main line stores have their full compliment of fixtures and products to represent the launch of their New Day (which was July 11th); further, unlike the outlet stores (which completed their New Day conversion on August 22nd), the change for the main line locations was a complete product reset, a true "shock to the system," positioning Vera Bradley on a new course with a wider offering of fabrics, a materially easier to shop store, an emphasis on handbags, complete leather collections and even new logos.</li><li>While we view these changes as longer term positives which position Vera Bradley for a new generation of shoppers, we do acknowledge that, like any shock, the near term impacts can be messy as the prior core shopper adjust and new shoppers slowly shift their views on Vera Bradley.</li></ul>

We are reiterating our Buy rating, $10 price target and projections as we review our mail line store visits for August.August represents the first monthly store tours where the main line stores have their full compliment of fixtures and products to represent the launch of their New Day (which was July 11th); further, unlike the outlet stores (which completed their New Day conversion on August 22nd), the change for the main line locations was a complete product reset, a true "shock to the system," positioning Vera Bradley on a new course with a wider offering of fabrics, a materially easier to shop store, an emphasis on handbags, complete leather collections and even new logos.While we view these changes as longer term positives which position Vera Bradley for a new generation of shoppers, we do acknowledge that, like any shock, the near term impacts can be messy as the prior core shopper adjust and new shoppers slowly shift their views on Vera Bradley.

VRA: Snapping the Store: Shocking the System; Reiterate Buy, PT