Benzinga - by Shivani Kumaresan, Benzinga Staff Writer.
Small Cap Consumer Research analyst Eric M Beder reiterates a Buy rating on the shares of Vera Bradley Inc (NASDAQ:VRA) with a price target of $10.00.
The key handbag trend right now is smaller items, as minis have taken over the shelves, said the analyst after visiting the company’s Long Island and Connecticut stores.
The accessories’ shopper is looking for unique items and smaller and novelty looks are in high demand, adds the analyst.
The new Belle collection has been an instant hit, with multiple patterns, silhouettes and offerings. The analyst notes the demand has been strong and helped drive main line store traffic.
The company’s highly original lightweight offerings, perfect for travel or packing, remain the only fabric still highlighted in outlet and main line locations, as per the analyst.
With the arrival of new looks, the analyst sees a decreased emphasis on the apparel category.
The analyst notes, with the desire for the main line stores to be fully new for the July shift, the outlets are being set up to be somewhat of a selling space for the remaining main line stores, with limited newness in store going forward.
Nearing the launch of management’s full vision for Vera Bradley in July, the analyst notes that both the outlets and main line locations increasingly reflect what is being added and what will be discarded in the shift.
The analyst continues to view 1HFY25 as a “bumpy” period where the company gets the setup correct and repositions Vera Bradley for a “New Day.”
Price Action: VRA shares are trading higher by 3.42% at $6.51 on the last check Monday.
Photo via Wikimedia Commons
Latest Ratings for VRA
| Mar 2022 | Telsey Advisory Group | Maintains | Market Perform | |
| Dec 2021 | Telsey Advisory Group | Maintains | Market Perform | |
| Sep 2021 | Telsey Advisory Group | Maintains | Market Perform |
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