We are reiterating our Hold rating and tweaking our FY27 projections upward after Vera Bradley registered 1QFY27 (April) results which demonstrate material signs the changes management is undertaking, from the return of Heritage items, a deeper focus on cotton offerings, lower discounts, new wholesale relationships and streamlining operations, are beginning to drive a turn, with sales up YoY for the first time since FY22 and a material improvement in gross margins. Further, with the crucial back-to-school season nearing, Vera Bradley is almost completely centered on management’s, under Chief Executive Officer Ian Bickley, vision for the company, providing a crucial test of what the new Vera Bradley will look like (and register in terms of returns) going forward. We are cautiously optimistic.
