We are reiterating our Buy rating, $10 price target and projections for Vera Bradley after visiting stores in Connecticut and Long Island. We believe, as we near the launch of management's full vision for Vera Bradley in July, both the outlets and main line locations increasingly reflect what is being added and what will be discarded in the shift. As such, we are seeing less inventory, especially in the outlet stores, flow in; further, there is an increasing emphasis on core categories, especially handbags, totes and luggage. There is also a deeper discounting cadence, as it is somewhat clear to us management wants to start the "New Day" for Vera Bradley with new product and looks. As such, we continue to view 1HFY25 as a "bumpy" period where the company gets the setup correct and repositions Vera Bradley for a "New Day." We reiterate our Buy rating and $10 price target.
