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

Small Cap Consumer Research

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

Vera Bradley, Inc. designs, produces and retails fashion accessories for women. The Company markets handbags, accessories and travel and leisure items through its chain of retail stores and independent retailers.

<ul><li>We are raising our price target for VRA to $7 (from $5), increasing our FY28 EPS to $0.11 (from a loss per share of $0.03) and reiterating our Buy rating after meeting with the management of Vera Bradley in their New York City showroom.</li><li> We believe, after a highly material cleanup of the business model, Vera Bradley has once again regained the support of their core OG customer and is poised, with clean stores and product flows, to drive higher margin revenue and upside.</li><li> While we continue to expect operating results to be “lumpy” in the near term as marketing and expansion plans unfold, we believe momentum is definitely on the upswing at Vera Bradley, and we are comfortable being more aggressive on our FY28 projections and VRA price targets.</li></ul>

We are raising our price target for VRA to $7 (from $5), increasing our FY28 EPS to $0.11 (from a loss per share of $0.03) and reiterating our Buy rating after meeting with the management of Vera Bradley in their New York City showroom. We believe, after a highly material cleanup of the business model, Vera Bradley has once again regained the support of their core OG customer and is poised, with clean stores and product flows, to drive higher margin revenue and upside. While we continue to expect operating results to be “lumpy” in the near term as marketing and expansion plans unfold, we believe momentum is definitely on the upswing at Vera Bradley, and we are comfortable being more aggressive on our FY28 projections and VRA price targets.

VRA: Taking Next Steps; Raising PT to $7 (from $5); Reiterate Buy

Vince Holding Corp. is a holding company. The Company, through its subsidiaries, develops branded fashion apparels for men and women and recreational products.

<ul><li>We are reiterating our Buy rating, raising our price target for VNCE to $16 (from $9) and maintaining our conservative projections after meeting with Vince Holding management at their New York City showroom.</li><li> We believe the core Vince operations remain primed for continued top and bottom line growth, driven by great looks, premium pricing and an affluent customer base who will pay full price for the right lifestyle driven offerings.</li><li> Further, we are now even more enthused about the potential for the recent October’s Very Own (“OVO”) transaction to begin to move at a quicker pace than we initially projected, with key announcements (new wholesale relationships, retail stores and category and product expansion) on tap for 2026, with a key impact for FY27.</li></ul>

We are reiterating our Buy rating, raising our price target for VNCE to $16 (from $9) and maintaining our conservative projections after meeting with Vince Holding management at their New York City showroom. We believe the core Vince operations remain primed for continued top and bottom line growth, driven by great looks, premium pricing and an affluent customer base who will pay full price for the right lifestyle driven offerings. Further, we are now even more enthused about the potential for the recent October’s Very Own (“OVO”) transaction to begin to move at a quicker pace than we initially projected, with key announcements (new wholesale relationships, retail stores and category and product expansion) on tap for 2026, with a key impact for FY27.

VNCE: Catalysts Ahead; Raising PT to $16 (from $9); Reiterate Buy

Betterware de Mexico Sab de CV / Equity Bottom-Up

Betterware de Mexico SAB de CV sells household products. The Company offers furniture, sink, electronics, utensils, laundry equipment, cleaners, bath accessories, personal care, and other goods. Betterware de Mexico serves customers in Mexico.

<ul><li>We are reiterating our Buy rating, $30 price target and projections for Betterware de Mexico as we review the recent release of proforma 1H26 results and review the company’s valuation on multiple cases: 1) as a direct selling entity; 2) as a personal care and housewares company and 3) as a bellwether Mexican publicly traded equity.</li><li> The 1H26 proforma results, confirm the conservative nature of our H26 and 2027 projections; in fact, on a proforma basis we project Betterware will achieve only a 7.3% revenue growth, 2.9% EBITDA increase and virtually no EPS expansion in 2027.</li><li> Even more so now, we view our 2027 projections as conservative.</li></ul>

We are reiterating our Buy rating, $30 price target and projections for Betterware de Mexico as we review the recent release of proforma 1H26 results and review the company’s valuation on multiple cases: 1) as a direct selling entity; 2) as a personal care and housewares company and 3) as a bellwether Mexican publicly traded equity. The 1H26 proforma results, confirm the conservative nature of our H26 and 2027 projections; in fact, on a proforma basis we project Betterware will achieve only a 7.3% revenue growth, 2.9% EBITDA increase and virtually no EPS expansion in 2027. Even more so now, we view our 2027 projections as conservative.

BWMX: Looking at Comps, Proforma 1H; Valuation Highly Compelling

<ul><li>We are reiterating our Buy rating, projections and $9 price target for Vince Holding after visiting the company’s recently acquired October’s Very Own (“OVO”) London flagship.</li><li> Opening in November 2017, the London location remains the only non-North American outpost for the brand, and we believe offers a compelling shopping experience for the Drake fan or London fashion shopper.</li><li>Situated in a key shopping area between Regent Street and Soho on the West End of London we believe the OVO stores offer a springboard to wholesale and potentially more international stores under Vince leadership.</li></ul>

We are reiterating our Buy rating, projections and $9 price target for Vince Holding after visiting the company’s recently acquired October’s Very Own (“OVO”) London flagship. Opening in November 2017, the London location remains the only non-North American outpost for the brand, and we believe offers a compelling shopping experience for the Drake fan or London fashion shopper.Situated in a key shopping area between Regent Street and Soho on the West End of London we believe the OVO stores offer a springboard to wholesale and potentially more international stores under Vince leadership.

VNCE: Snapping the Store – OVO London Edition: European Gateway; Reiterate Buy, PT

<ul><li>We are reiterating our Buy rating, price target and projections for Vince Holding after visiting company stores and shop in shops in London.</li><li> We remain impressed with Vince’s ability to offer compelling collections to the core London shopper and create a true lifestyle brand focused on key Vince items (i.e. sweaters, dresses, outerwear and footwear) and, increasingly offer fashion driven looks driven by color and daring newness.</li><li> Further, Vince management has continued to expand, taking direct control of a key department store shop in shop and flowing in complete collections to drive multi-piece shopping.</li></ul>

We are reiterating our Buy rating, price target and projections for Vince Holding after visiting company stores and shop in shops in London. We remain impressed with Vince’s ability to offer compelling collections to the core London shopper and create a true lifestyle brand focused on key Vince items (i.e. sweaters, dresses, outerwear and footwear) and, increasingly offer fashion driven looks driven by color and daring newness. Further, Vince management has continued to expand, taking direct control of a key department store shop in shop and flowing in complete collections to drive multi-piece shopping.

VNCE: Snapping the Store-London: Driving Affluent Sales; Reiterate Buy, PT

Equity research on small cap consumer names.