We are reiterating our Hold rating and projections for Vera Bradley after visiting stores in Long Island and New Jersey. April has seen the launch of exciting new collections in both the main line and outlet locations, with cherries and strawberries the key looks of the season. Further, there is continued positives for licensed items, with the launch of the first Harry Potter collection for the outlet channel, another round of Peanuts for the main line and the launch of a Toy Story collection ahead of the movie launch. Further, the store evolution has continued, with an increased emphasis on upgrading the offerings via a more streamlined presentation and a deeper focus on product silhouettes, which should make for an easier shopping experience which highlights the uniqueness of the company’s fabrics and patterns/hues. We believe Vera Bradley is increasingly nearing management’s vision, and we await the next round of testing/experimentation.
