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

Small Cap Consumer Research

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

Vera Bradley, Inc. designs, produces and retails fashion accessories for women. The Company markets handbags, accessories and travel and leisure items through its chain of retail stores and independent retailers.

<ul><li>We are reiterating our Buy rating, $10 price target and projections for Vera Bradley after visiting Long Island and Connecticut Vera Bradley locations.</li><li>With the launch of the New Day on July 11th, Vera Bradley entered a new era for their main line stores, with new fabrics, new looks, lighter and brighter fixtures, a new logo and a new spokesperson (Zooey Deschanel).</li><li>When the shock of the new has passed, the look and offerings are impressive and, we believe, when fully launched, will satisfy both the traditional Vera Bradley shopper looking for exciting patterns and features and drive new, younger customers that will be attracted to the compelling fashion, combinations, colors and versatility of the offerings.</li></ul>

We are reiterating our Buy rating, $10 price target and projections for Vera Bradley after visiting Long Island and Connecticut Vera Bradley locations.With the launch of the New Day on July 11th, Vera Bradley entered a new era for their main line stores, with new fabrics, new looks, lighter and brighter fixtures, a new logo and a new spokesperson (Zooey Deschanel).When the shock of the new has passed, the look and offerings are impressive and, we believe, when fully launched, will satisfy both the traditional Vera Bradley shopper looking for exciting patterns and features and drive new, younger customers that will be attracted to the compelling fashion, combinations, colors and versatility of the offerings.

VRA: Snapping the Store: New Day Arrives; Reiterate Buy Rating, $10 PT

Lands' End, Inc. manufactures men's, women's and children's apparel and accessories. The Company produces and distributes swimwear, clothing, bedding, totes, furniture, bath accessories, uniforms, outter wear and various related products. Lands' End offers its products through its catalog and website around the world.

<ul><li>We are reiterating our Buy rating and projections and raising our price target to $20 (from $17) after meeting with Lands' End management at their headquarters in Dodgeville, Wisconsin.</li><li>We believe management is laser focused on continuing to drive higher overall returns to the company, from shifting the product mix, lowering inventories, realizing higher pricing, focusing on features and stories to drive deeper customer interaction and loyalty, deepening licensing penetration on non-core categories, expanding internationally and driving stronger results at the Outfitters segment.</li><li>The emphasis on leveraging the highly trusted Lands' End moniker to maximize brand equity, drive higher returns and create an even more compelling lifestyle story is still in the early stages and, we believe, will drive multi-period growth.</li></ul>

We are reiterating our Buy rating and projections and raising our price target to $20 (from $17) after meeting with Lands' End management at their headquarters in Dodgeville, Wisconsin.We believe management is laser focused on continuing to drive higher overall returns to the company, from shifting the product mix, lowering inventories, realizing higher pricing, focusing on features and stories to drive deeper customer interaction and loyalty, deepening licensing penetration on non-core categories, expanding internationally and driving stronger results at the Outfitters segment.The emphasis on leveraging the highly trusted Lands' End moniker to maximize brand equity, drive higher returns and create an even more compelling lifestyle story is still in the early stages and, we believe, will drive multi-period growth.

LE: Mgmt. Meetings Confirm Positives; Raising PT to $20 (From $17); Reit. Buy

Betterware de Mexico Sab de CV / Equity Bottom-Up

Betterware de Mexico SAB de CV sells household products. The Company offers furniture, sink, electronics, utensils, laundry equipment, cleaners, bath accessories, personal care, and other goods. Betterware de Mexico serves customers in Mexico.

<ul><li>We are reiterating our Buy rating, $22.50 price targe and projections for Betterware de Mexico with the company reporting 2Q24 (June) results after the close on Thursday.</li><li>We believe, while the Betterware division may be a drag (due primarily to foreign exchange), JAFRA continued to shine and the expansion into the United States has slowly begun to gain momentum at both Betterware and JAFRA.</li><li>Further, we expect management to remain positive over key trends and for the company to once again reiterate overall guidance for 2024.</li></ul>

We are reiterating our Buy rating, $22.50 price targe and projections for Betterware de Mexico with the company reporting 2Q24 (June) results after the close on Thursday.We believe, while the Betterware division may be a drag (due primarily to foreign exchange), JAFRA continued to shine and the expansion into the United States has slowly begun to gain momentum at both Betterware and JAFRA.Further, we expect management to remain positive over key trends and for the company to once again reiterate overall guidance for 2024.

BWMX: 2Q Preview: Another Quarter of Strong Proof; Reiterate Buy, $22.50 PT

<ul><li>We are reiterating our Buy rating, projections and $17 price target for Lands' End as we review the July 2024 catalog.</li><li>The catalog is incremental for the company, as July is traditionally a clearance month (and the nearing of the end of season for swimwear).</li><li>The July catalog is a true lifestyle driven book, with a focus on fun living with Lands' End products.</li></ul>

We are reiterating our Buy rating, projections and $17 price target for Lands' End as we review the July 2024 catalog.The catalog is incremental for the company, as July is traditionally a clearance month (and the nearing of the end of season for swimwear).The July catalog is a true lifestyle driven book, with a focus on fun living with Lands' End products.

LE: Snapping the Catalog: Peak Excitement as the Temp Rises; Reiterate Buy, PT

JAKKS Pacific, Inc. develops, manufactures, and markets toys and related products for children. The Company's products includes action figures, die-cast collectible and toy vehicles, preschool toys, and fashion dolls and accessories. JAKKS Pacific serves customers in the United States.

<ul><li>We are initiating coverage of JAKKS Pacific, Inc. ("JAKKS" or the company), a leading designer, producer, marketer, seller and distributor of multi-brand licensed toys and related products, with a Buy rating and a $24 price target, or 7.5X our 2025 EPS projection of $3.20.</li><li>We believe, after a rough start to 2024, driven by weak content-led movie driven results, JAKKS is nearing a stabilization of the business and, with new licensing relationships (The Simpsons and Authentic Brands) and content-led movies (Moana 2, Sonic the Hedgehog 3) coming to the fore, is positioned for upside.</li><li>Further, as of 1Q24, JAKKS is debt free for the first time in recent history, with cash per share of over $3.40 and tangible book value of over $14.75 per share.</li></ul>

We are initiating coverage of JAKKS Pacific, Inc. ("JAKKS" or the company), a leading designer, producer, marketer, seller and distributor of multi-brand licensed toys and related products, with a Buy rating and a $24 price target, or 7.5X our 2025 EPS projection of $3.20.We believe, after a rough start to 2024, driven by weak content-led movie driven results, JAKKS is nearing a stabilization of the business and, with new licensing relationships (The Simpsons and Authentic Brands) and content-led movies (Moana 2, Sonic the Hedgehog 3) coming to the fore, is positioned for upside.Further, as of 1Q24, JAKKS is debt free for the first time in recent history, with cash per share of over $3.40 and tangible book value of over $14.75 per share.

JAKK: Initiating Coverage of JAKKS with Buy, $24 PT; Building a Better Model

Equity research on small cap consumer names.