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 lowering our projections and price target for Vera Bradley after the company reported lower than consensus 4QFY25 (January) projections, announced the sale of Pura Vida and provided initial FY26 guidance, which, even with the exclusion of Pura Vida, demonstrates the return to prominence for Vera Bradley will be a longer than expected undertaking.</li><li>That said, with a cash rich balance sheet, signs of positives in the direct channel and management quickly reacting to customer commentary, we believe the company has the ability (and financial resources) to switch the customer base and register compelling returns.</li><li>As such, we are reiterating our Buy rating, but, in a bow to what will be another rebuilding year in FY26 cutting out price target to $4 (from $5.50).</li></ul>

We are lowering our projections and price target for Vera Bradley after the company reported lower than consensus 4QFY25 (January) projections, announced the sale of Pura Vida and provided initial FY26 guidance, which, even with the exclusion of Pura Vida, demonstrates the return to prominence for Vera Bradley will be a longer than expected undertaking.That said, with a cash rich balance sheet, signs of positives in the direct channel and management quickly reacting to customer commentary, we believe the company has the ability (and financial resources) to switch the customer base and register compelling returns.As such, we are reiterating our Buy rating, but, in a bow to what will be another rebuilding year in FY26 cutting out price target to $4 (from $5.50).

VRA: 4Q Review: Fully Focused on the Core, Reiterate Buy, Lowering PT to $4