We are reiterating our Hold rating and projections for Vera Bradley after visiting stores in Connecticut and Long Island. October saw the launch of the Outlet 2.0 concept, which we view as an exciting new way to think of the outlet stores, with new fixtures/displays, less patterns, offering full price main line goods and focusing more on price points (versus % off). At the main line stores, new Disney items, return of the 100 bag (the first Vera Bradley offering) and a reconfiguration of the store to focus on key elements (i.e.travel, heritage, crossbody, leather) sharpen the overall focus and Grady main line locations for the Holidays. We believe these shifts will be a key test for Vera Bradley during the Holiday season, with the potential to reignite growth for the company.
