We are reiterating our Buy rating, $5.50 price target and projections for Vera Bradley after visiting stores in Connecticut and Long Island. For the main line stores, Spring has seen material positive shifts, from a collection of Heritage driven items, subtle shifts in straps, zippers and pockets (which we believe have made a highly material difference) and the return of winning fashion trends such as beading; we believe the response from consumers has been a positive. For the outlets, management is testing different strategies from new pricing to lower inventories to revive growth; the launch of a outlet only Snoopy collection should be a plus. As such, we are seeing further proof of the potential for a turn at Vera Bradley, and we reiterate our Buy rating and $5.50 price target.
