Equity Research Focusing on the Consumer Sector, Small Cap Consumer Research

Small Cap Consumer Research

Equity research on small cap consumer names.

Equity Research Focusing on the Consumer Sector

Small Cap Consumer Research, LLC is a leading company-sponsored equity research provider focusing on the consumer sector (apparel, brand licensing and specialty retailing segments).

Equity Bottom-Up

<ul><li>We are reiterating our Hold rating on Vera Bradley and slightly reducing our projections for 2HFY26 and FY27 after the company released 2QFY26 (July) results which were below expectations on the top line but materially better on the EBITDA and bottom lines, as the company was able to leverage some key product wins against very easy comparisons (expectations).</li><li>More importantly, new management laid out their five pillars to revive the Vera Bradley, including: 1) sharpening the brand, 2) a true omnichannel experience, 3) outlet 2.0; 4) operations focus and 5) re-imagining how Vera Bradley works.</li><li>Management believes these shifts will reposition the brand to re-attract older customers and position Vera Bradley for new generations, along with a return to higher overall profitability and consistent top line growth.</li></ul>

We are reiterating our Hold rating on Vera Bradley and slightly reducing our projections for 2HFY26 and FY27 after the company released 2QFY26 (July) results which were below expectations on the top line but materially better on the EBITDA and bottom lines, as the company was able to leverage some key product wins against very easy comparisons (expectations).More importantly, new management laid out their five pillars to revive the Vera Bradley, including: 1) sharpening the brand, 2) a true omnichannel experience, 3) outlet 2.0; 4) operations focus and 5) re-imagining how Vera Bradley works.Management believes these shifts will reposition the brand to re-attract older customers and position Vera Bradley for new generations, along with a return to higher overall profitability and consistent top line growth.

VRA; 2Q Review: Plotting the Revival; Reiterate Hold and Remain Guarded NT