We are reiterating our Buy rating, $5.50 price target and projections for Vera Bradley with the company reporting 4QFY25 (January) results before the open on Wednesday. While we believe 4Q upside is limited, we expect management to point to signs of material progress as they shift the product and category mix to attract a younger generation. Further, we expect the launch of the Spring collection in 1QFY26 has been a key positive and provides a road map to move Vera Bradley back into prominence. As such, and with $20 million in S,G&A savings for FY26 not incorporated into our projections, we believe initial FY26 guidance could be a plus. As such, and with great patience, we reiterate our Buy rating and $5.50 price target for VRA.
