Monday, July 25, 2022
Vera Bradley (VRA)
CEO Change and Cost Initiatives Update
Joe Gomes, Senior Research Analyst, Noble Capital Markets, Inc.
Joshua Zoepfel, Research Associate, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
A Transition. Vera Bradley announced Thursday the retirement of long-time President and CEO Robert Wallstrom. Mr. Wallstrom will remain in the position until a successor is named, which is expected by the beginning of 2023, and will work with the board of directors in the search. The search will consider both internal and external candidates, with a focus on a CEO to continue the Company’s focus on building consistent, sustainable growth over the long-term for the Vera Bradley and Pura Vida businesses.
Cost Initiatives Update. The Company also provided an update to the cost reduction initiatives, announced in the first quarter earnings call. Management has identified annualized cost reductions totaling approximately $25 million, at the high end of the $15-$25 million forecasted range. A portion of the savings are expected to be realized this fiscal year and will be fully implemented in the fiscal year ending February 2024….
This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.
