Vera Bradley: A Top Contrarian Play In Retail
Helix Investment Research
Helix Investment Research
Fri, Nov. 25, 11:57 AM
- KeyBanc calls Amazon (AMZN -0.1%) and Wal-Mart (WMT +0.7%) early winners of the Black Friday shopping period based on channel checks.
- The investment firm confirms other reports that mall traffic is light. Within the mall sector, Lululemon (LULU +0.2%), Victoria's Secret (NYSE:LB) and Gaps (GPS -1.4%) are called outperformers - while concerns are raised over Buckle (BKE +0.6%) and Vera Bradley (VRA +0.8%).
- Cowen also sees Wal-Mart as a winner. Pink (LB) and American Eagle Outfitters (AEO +0.2%) are also doing wel, according to analyst Olivia Chen.
- MKM Partners has an eye on margins. The combination of "virtually all" retailers offering broad discounts on store assortment and a low level of inventory heading into the shopping period is striking.
- FBR Capital reiterates the broad theme that online sales are diluting Black Friday store traffic. Despite the overhang - Carter's (CRI +0.2%), Hanesbrands (HBI -0.3%), Chico's (CHS +0.7%) and Children's Place (PLCE +1.3%) are called out by FBR as standouts.
Mon, Nov. 14, 10:15 AM
- Clothing and footwear stocks are jetting higher as more analysts bump up expectations on consumer spending in Q4 and broadly forecast tax relief for the consumer goods sector (effective tax rates paid).
- Many of the names with the sharpest moves higher today are recovering from a pre-election slump.
- Gainers include Sequential Brands Group (SQBG +11.7%), Iconix Brand Group (ICON +5.1%), Carter's (CRI +4.6%), Vera Bradley (VRA +4.6%), Wolverine World Wide (WWW +4%), Crocs (CROX +4.3%), Caleres (CAL +4.6%), Ralph Lauren (RL +3.4%), Fossil (FOSL +5%), Perry Ellis (PERY +3%), Deckers Outdoor (DECK +3.5%), Skechers (SKX +3.2%) and Coach (COH +3.1%).
- Kate Spade (KATE +5.9%) is also rallying, but has news of an activist investor on the prowl also factoring in.
- Previously: Kate Spade hears from activist firm (Nov. 14)
- Previously: Investors see upside with apparel store stocks (Nov. 14)
Fri, Oct. 14, 2:54 PM
- Piper Jaffray is out with the results of its annual Taking Stock With Teens Survey. The top brands listed by the 10K teens included in the survey are posted below.
- Top clothing brands: Nike (NYSE:NKE) 29%, American Eagle Outfitters (NYSE:AEO) 9%, Forever 21 5%, Ralph Lauren (NYSE:RL) 4%, Urban Outfitters (NASDAQ:URBN) 3%.
- Top handbag brands: Michael Kors (NYSE:KORS) 34%, Kate Spade (NYSE:KATE) 19%, Coach (NYSE:COH) 10%, Louis Vuitton (OTCPK:LVMHF) 5%, Longchamp Vera Bradley (NASDAQ:VRA) 3%.
- Top footwear brands: Nike 51%, Vans (NYSE:VFC) 9%, Converse 7%, Adidas (OTCQX:ADDYY) 6%, Steven Madden (NASDAQ:SHOO) 2%.
- Top restaurant chains: Starbucks (NASDAQ:SBUX) 14%, Chipotle (NYSE:CMG) 11%, Chick-fil-A 10%, Taco Bell (NYSE:YUM) 3%, Panera Bread (NASDAQ:PNRA) 3%, McDonald's (NYSE:MCD) 3%, Olive Garden (NYSE:DRI) 3%.
- Nothing earth-shattering in the tech results, dominating teen mindspace are Snapchat (Private:CHAT), YouTube, Instagram and Netflix (NASDAQ:NFLX).
Wed, Oct. 12, 9:08 AM
- Vera Bradley (NASDAQ:VRA) announces that it has taken action to investigate and address an incident affecting payment card data used at its retail stores.
- The company says payment cards used at Vera Bradley store locations between July 25 and September 23 may have been affected.
- Source: Press Release
Thu, Oct. 6, 8:21 AM
Thu, Sep. 1, 12:47 PM
Thu, Sep. 1, 12:02 PM
Thu, Sep. 1, 9:38 AM
- Vera Bradley (VRA +6.9%) reports comparable sales fell 5.7% in Q2 due to declines in store and e-commerce traffic.
- Direct segment revenue rose 4.1% to $87.2M.
- Indirect segment revenue declined 13.4% to $32M.
- E-commerce sales squeezed 5.4% Y/Y.
- Gross margin rate improved 230 bps to 57.4%.
- SG&A expense rate increased 310 bps to 50.6%.
- Operating margin rate decreased 90 bps to 7%.
- Inventory -7.1% Y/Y to $96.55M.
- Q3 Guidance: Net revenues: $128M to $133M; Gross margin rate: 58% to 58.5%; SG&A expense rate: 47.6% to 48.6%; Tax rate: 38.1%; Diluted EPS: $0.22 to $0.24; Weighted-average shares outstanding: 36.6M; Inventory: $95M to $100M.
- FY2017 Guidance: Net revenues: $510M to $515M; Gross margin rate: 57.3% to 57.5%; SG&A expense rate: 47.3% to 47.5%; Tax rate: 37.6%; Diluted EPS: $0.88 to $0.92; Weighted-average shares outstanding: 36.9M; Capex: ~$20M.
Thu, Sep. 1, 8:07 AM
Wed, Aug. 31, 5:30 PM
Wed, Aug. 31, 1:18 PM
- Vera Bradley (NASDAQ:VRA) announces the opening of its first full line New York City flagship with a new store in SoHo.
- The company says the new 2.7K square-foot store will carry the complete Vera Bradley collection.
- "We are thrilled to open our first Vera Bradley store in New York City," says CEO Robert Wallstrom,
- Source: Press Release
Wed, Aug. 10, 9:58 AM
- Results from Fossil (FOSL +5.3%) and Ralph Lauren (RL +8.2%) that came in ahead of some beat-down expectations are helping to provide a lift to other names in the apparel sector. The rally is focused primarily on higher-end sellers.
- Cost streamlining helped to cut into weak tourism and F/X trends.
- Notable gainers include Hanesbrands (HBI +3.6%), PVH Corp (PVH +1%), Luxottica (LUX +1.9%), Kohl's (KSS +2.3%), VF Corp (VFC +1.2%), Guess (GES +1.2%), G-III Apparel (GIII +1.7%), Gildan Activewear (GIL +0.8%), and Vera Bradley (VRA +1.5%).
Wed, Aug. 3, 9:47 AM
- Kate Spade's (KATE -19.2%) weak results posted earlier this morning have created some broad anxiety across the spectrum of retailers that sell handbags luxury apparel, and accessories.
- The report from Kate Spade threw a bright spotlight on the uphill battle the sector faces in replacing sales from the reduced level of tourists pouring into the U.S.
- Coach (COH -1%), Vera Bradley (VRA -2.5%), Michael Kors (KORS -4%), Movado (MOV -0.3%), and Fossil (FOSL -2.9%) are all notably lower.
- Previously: Weak tourism cuts into results at Kate Spade (Aug. 3)
Thu, Jun. 2, 12:13 PM
- Kate Spade (KATE -6.7%) and Vera Bradley (VRA -5.4%) are sharply lower even with broad retail indexes slightly higher on the day.
- There's been some indication that traders are worried over the elevated level of sales on Kate and Vera products.
- On Wall Street, Telsey lowered its price target on VRA to $19, while no rating actions came down on KATE.
Wed, Jun. 1, 8:31 AM
- Vera Bradley (NASDAQ:VRA) reports comparable sales declined 6.7% in Q1 due to declines in store and e-commerce traffic.
- Direct segment revenue expanded 3.6% to $72.9M.
- Indirect segment revenue rose 5.1% to $32.2M.
- E-commerce sales fell 11% Y/Y.
- Gross margin rate grew 220 bps to 56.7%.
- SG&A expense rate improved 90 bps to 53.6%.
- Operating margin rate increased 280 bps to 3.7%.
- Inventory +11.4% Y/Y to $113.41M.
- Q2 Guidance: Net revenues: $118M to $123M; Gross margin rate: 58% to 58.5%; SG&A expense rate: 51.3% to 51.8%; Tax rate: 37.9%; Diluted EPS: $0.13 to $0.15; Weighted-average shares outstanding: 37.1M; Inventory: $105M to $110M.
- FY2017 Guidance: Net revenues: $510M to $520M; Gross margin rate: 57.7% to 58.2%; SG&A expense rate: 47.3% to 47.5%; Tax rate: 38.3%; Diluted EPS: $0.90 to $0.98; Weighted-average shares outstanding: 36.9M; Capex: ~$20M.
- VRA -0.13% premarket.
Wed, Jun. 1, 8:08 AM
- Vera Bradley (NASDAQ:VRA): Q1 EPS of $0.06 beats by $0.01.
- Revenue of $105.18M (+4.0% Y/Y) misses by $1.57M.