VRA - Earnings call transcript Q1 2022

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Operator

Good morning ladies and gentlemen. Thank you for standing by. Welcome to the Vera Bradley first quarter conference call. At this time, all participants are in a listen-only mode.

Following the presentation, we will conduct a question and answer session. at for provided up to be questions. for will that you time queue Instructions

today’s is to conference would reminder, Please a As call to Bradley’s Administrative the go Vera ahead. now being turn call Dely, over Mark Chief Officer. like I recorded.

Mark Dely

Vera welcome for earnings morning joining and thank for We’d everyone. Good call. to like you us Bradley’s

the the statements Some Safe the your questions to of in and response within the of statements the filed provisions Form and to and the constitute Harbor made made made forward-looking discussion will Rob? recently remain today’s information call should uncertainties. Vera a Private a remarks meaning for to We during of our statements today’s prepared press pursuant with later may SEC known Securities to assume Such that Litigation company’s CEO, XX-K discussed over time. risks those known operative of Reform as uncertainties and no at I during results Wallstrom. XXXX, risks Act actual now not Investors that release Rob from call filed turn materially we update most the unknown of expect. forward-looking to amended. Bradley’s on the statements to could the differ that any cause call. Please are subject will obligation to undertake refer and and both

Robert Wallstrom

and for also us joining everyone, you on John thank Good today. me joins CFO morning Enwright, call. Thank our you Mark. today’s

stimulus Ecommerce distributed, solid We two-year and with traffic spending stores returning became and on with a available, revenue more to full vaccines work, reopened. and travel. showed strength continued are first even confidence, experienced began our funds Consumer one-year and revenue performance earnings both grew expectations. We pleased comparison. social were our events customers our government We performance. quarter as outperformed widely and

XXXX, and XX% first Our grew Vera fiscal revenues first with a fiscal year. were sales versus quarter over comparison, the XX% first comp revenues consolidated On prior flat net Pura of quarter XXXX over results. increased two-year Vida’s quarter Bradley

Vida’s in quarter from promotional Pura rate, We revenue reminder, consolidated not reduced revenue our a for XXXX was our managed fiscal prudently expanded expenses. consolidated margin As gross levels, first and that time our period. our

sheet with Fiscal categories, debt. balance first, digital XXXX and Pura remains the off ahead company’s start Both driven enter cash well our a innovation, of ample and stage solid and our Vera by we Our brands, strong of customer on as engagement. no lifestyle growth core Vida, to is next journey. product focus Bradley growth have beyond opportunities a our

the brands in founder clean Goldman to is hair to results, at Nancy’s board turn CEO In carefully care of Black-owned Tharp, last the female I Nancy call Vera John Bradley of over Before of to discuss crafted and officially Nancy appointment at as position Sachs her departed like the VP of Care, Hair Briogeo, Twine, to to XXXX, the Briogeo financial line I Inc. launch board of representation diverse the directors. highlight Carrie would year’s prestige Kristina growth one with appointments the Briogeo one over and along is brads our U.S. beauty to of XX%. largest globally, beauty stores in care hair X,XXX Today, fastest Sephora, prestige products. Cashman the brings independent and appointment, of retails a

and one few company. multi-lifestyle of a John? and a forward high listed counsel. expanding one of strong retail as our brand XXXX financial perspective insights contributions and enterprise’s growth with We on of of just the invaluable board. experience majority public the be female will diverse companies public her and to expertise, execute our millennial background as to continue purpose-driven, look with along we elite well Nancy’s gender-balanced board, vision Nancy’s X% entrepreneurial with a companies as are We Russell the Index

John Enwright

and good morning. Rob, Thanks

me few discuss today for Let quarter. are numbers will first the I all non-GAAP. over go a highlights The

will release. complete quarter, for numbers current items totaled non-GAAP from COVID-XX. first Prior net discuss and an the $XXX.X the reference XX.X% the prior today’s revenues $XX.X by press Consolidated excluded first reconciliation the detailed non-GAAP revenues year were increase year of complete million over million affected year For I of numbers, GAAP please quarter. in to adversely

or our net our consolidated diluted Bradley last Current Vera diluted share a a loss for year on revenues is compared million first Since store in charges, $XX.X prior half to totaled a $X.XX share or to not closed stores Excluding XX.X% $X.X totaled quarter, the the non-GAAP year. million, first of $X.XX year. prior of related year temporarily comparable year relevant. loss sales over basis first approximately $XX.X quarter $XX.X direct per the were calculation quarter million net increase million and per segment prior

XX.X% in first better the to comparable For year increase the prior million quarter. a $XX.X $XX.X apples-to-apples of Pura million segment $XX.X XX.X% the totaled segment revenues Vida were comparison, over first quarter prior million, year a first increase revenues Vera flat Bradley sales over quarter. million, XXXX. $XX.X totaled in indirect fiscal a

improvement million basis, revenues shift compared $XX.X channel non-GAAP expense million First $XX.X mix prior quarter driven million XX.X% to $XX.X consolidated or or a and price consolidated for net or net prior current for of SG&A the in gross to consolidated revenues million net by X.X% full year revenues net net first basis, quarter of totaled of On profit were Prior basis. a year On The the a or year or XX.X% our of SG&A loss and net leverage revenues totaled selling. materially non-GAAP revenues XX.X% $XX.X a year. or was $XX.X XX.X% quarter million compared of on in year-over-year XX.X% affected more last of operating $X.X by million COVID-XX. revenues expenses to totaled compared quarter. non-GAAP first the

in and raising guidance forward-looking estimates non-GAAP. the numbers talk outlook Based provided from on the EPS revenue March. full Let we for quarter All our our our are about performance, year me for year. fiscal our guidance first are

facing We of for tailwinds balance are combination a and of year. the headwinds the

particularly and fiscal side, product On industry-wide the plus of demonstrating important expect market. congestion a port and are half [indiscernible] include delays, XXXX our outbound tightening causing and substantial in pent-up of the improvement in second costs, increase, Customers continued as we store Negatives of demand. anticipate to freight businesses. delivery in inbound back-to-school travel we revenue increases labor traffic the and

masks be fiscal generate addition, in not which, meaningful as will In expected, from we in XXXX. repeated fiscal revenues XXXX

Vera margin For quarter for example, of XXX fiscal nearly second guidance quarter, consolidated second revenues brand we for XX% points providing of the not XXXX. gross added cotton while over represented the of Bradley and are masks basis

to of compensation Act open increase to fiscal primarily of and is margin in Year-over-year for associated cash XXXX, The consolidated CARES For to of and diluted million for mass $XXX $XX Bradley Pura general compared to an million to to million XX% million The are fiscal expected of costs to $XXX million operating incremental flow in Consolidated fiscal XX% $XX expected potential $XX year, to total last SG&A to logistics and between Bradley revenues EPS $XX year, between are to being compared fiscal $X fiscal expense non-comparable approximately $XXX.X and net of Vida this $XX $X.XX XX% between XXXX. totaled full to sales million million $X.X EPS Consolidated expense. locations rate revenues related capital to compared income $XXX year. prior XX% million with coupled in enhancements. and million with we to spending stores XXXX. million grow to compared in freight the Consolidated $X.XX in Net Consolidated of expect abatement and XXXX, XXXX. compared year decline to to variable $XXX XX% XX%, factory $XX higher penetration Vera last technology the million gross to new million revenues $X.XX, million last expected diluted increases relates between XX%. million savings revenues grow million Vera to $XX reflecting compared year. expectations. in year. and Free net $XXX

compared the no year’s me our quarter, borrowings at related have we included $XXX.X million quarter This was end million facility. expansions repaid higher end has the at credit $XX turn been year Cash, inventory category intensifications. million since million to $XX to balance the Vida on at and last end drawn inventory sheet. million on the let first $XXX.X equivalents than prior $XX.X totaled cash was additional and primarily and first to facility. to $XX.X ABL end which the last Now Pura Total quarter of inventory due million compared to product quarter investments the end Quarter year.

year by approximately year-over-year expect be We down X% end. fiscal Rob? inventory by should

Robert Wallstrom

John. Thanks

be the strategy our utilizing enhancing serve and to business our key growth four in share our As customers. our product fiscal by our with Number innovation brand and pipeline, technology, company creating marketing impactful distribution and digital existing attract of new a one, there, developing positive Number database our expansions customers. and refining increase building to products of customer speed process by wallet and customers first two, by technology deepens digital market. through decision for four, not for to an community the evolving loyalty. driving and agility, to collaborations platforms drastically the and refining experiences category customers’ making, digital channels movement distribution but changes retail are: improve and will growth This XXXX, reminder future drivers our environment continuously that by centricity, supported the brand the consumer addressing marketplace. opportunities Number changing our our lives only evolving in further focusing

our start Pura Vida business. me with Let

and offerings a a and this forward to XX% Pura over drive off total to year order over start first summer Vida’s We we and to infrastructure. revenues strengthen growth, are XXXX. our to are In XX% season Pura look fiscal healthy We last continuing expand quarter lifestyle our good with to year. up up back-to-school Vida

unifying ERP data this on the this We and among will other allow our is be entire completion of are sourcing, enterprise at midst Project which service, areas. fall. CRM, for Vida, Pura Novus that technology will integration and analytics, enhanced customer platform for our point, a in At schedule capabilities in

also have Pura product key rapid inventory functions a planning, strengthened at pace. merchandising, Pura to Vida. analytic customer We front continues on innovate and the Vida

elements bracelets. adding and collections designs our beyond constantly traditional diversified core well our spring we to are jewelry have new We and

is ability business jewelry ecommerce categories. of Now extension non-jewelry really we Vida to up the brand’s our of perfect of brand’s which launched shirts appeal is apparel made expand appeal. hoodies, Vida lifestyle Further about lifestyle. broad underscoring of our In a categories Pura Pura and April, underscores the XX% into collection our non-spring our

a quickly. out started sold Several believe collection, a While sizes we significant we this with revenue is limited going forward. opportunity

products similar the to and of fair popular certified bracelet are All tie-ins, trade cause-related have our program. styles charity key

collection. backpack affordable fun, our introduced we month, last Just

Vida will are and we devotees on In collaborations Pura exciting driving In new a recall customers and so just and a a and it Stay just interest Vida there begin in expertise sold backpacks marketing Vida Pura the Pura licensing Vera might engaging collaborated few Bradley special You months, out the lot Vida announcing with only know loyalty couple partnerships. demonstrated is to lifestyle. twist. Vida tuned. our some to has building not into the appeal previously area, a existing a in Pura backpack introducing hours, brand. new customers Apparel Pura a in but we and backpack customers, of product

more more continually inclusive our customers, new customers looking new for in marketing, to ways creatively engage generate design our We to on drive paid and advertising. are brand, efficiency focused

distribution this supply strong we targeting year, On have at particularly strength wholesale the Vida infrastructure. growth Pura we our as and chain ecommerce in front, are

last approximately to first year normalcy, As returned our XXXX doubled the fiscal and by levels. XX% more over wholesale quarter grew has world over revenues

host add core We Westfield new in products influencer Pura expanded our events. tremendous as product customer wholesalers. and store in-store presentations, San lab receive allow us retailers product within us excited experiencing we allow and with new as are existing existing continuing we presence in to first our categories feedback, innovations, wholesale significantly showcase and Mall have We by will Diego’s UTC partners Vida to remain are invaluable in larger our opening about well to August. growth This

We performance store’s will for evaluate future possible expansion. the

so categories year stores a + very our Vera out will Vida. this in full and Vida meaningful growth distribution to product been full We all thus product and coupled with the this and Pura far, showcase expected growth line with continue for opportunities expanded successfully Bradley Vera program stores. Pura We array are spring Vera to Vida pleased products rolled have look in additional results drive bottom of at new core charity Pura our to bracelet line Bradley Bradley top shop-in-shop

to shift let’s Now Bradley. Vera

travel robust especially forward travel initiatives and to as calendar plan nearly product noted, exciting of recovery three-quarters of this we and summer the a of marketing the of John the for continuing launches that and indicates Research Americans our segments have year, We look campus business. to alone.

up the we fabrics. to innovation fabric new offerings build but platform ramped wallet have of Vera of to customers our only front, is On new with on share increase pipeline important product continually attract pipeline This to and customers to sustainable our our to develop existing Bradley. not

Our commitment at starts newest our core.

feel cotton real influencer, for in and month, hand our a partnered the collection Consciously iconic cotton, nearly XX on XX% conventional impact new that XX% Lana has time collection. loved we have the as soft last colors, crafted launch our fashion Condor recycled years. Just to the solid actor recycled with but and same performance first available for world our environment customers lighter from cotton and the

Our brand limited giving and features custom in Cotton environmental our with with resources. includes handy online fewer available are details bag’s stores. By Reimagined washable collection and using and lots pockets by utility a bringing discarded life and using Backpack Utility new functionality clips. Lana cotton, is The to silhouettes, Lana special collection exteriors up utility the also herself, edition recycled new of and materials lightweight several dreamed now we the

global estimate In water impact scarcity by XX%. will of that XX% reduce improve and fact, by use our we impact our cotton recycled the warming

ReActive recycled bottles. from water also collection continuing our made grow popular are to We

gift brand We’re Bradley constantly reuse with help more our their offering a committed Switching to Vera thredUP, to styles. collaborations innovating we stores Vera to used launched Customers old researching a to updating kits eco-friendly and and element and clean-out closets. our gears, are XXX% remain their in XXXX. Also, participate alternatives sustainable strategy. of program fabrics earn bring to our to give customers month our cards high life any and options in purchase online other we the program in new items of who quality customers and new more favorites from will by our alliances strategic Bradley key last

of of accent cushions, our rugs, for and profile Harry and we Crocs, a collaborations this just covers, high This exciting classic seats continued accessories quarter, more. an we launches Potter, outdoor with week Disney, product announced with new and collection furniture new umbrellas, and lounge collaboration pillows,

retailers categories. classicaccessories.com, addition Home existing in Bradley and and awareness, opportunities new generate Vera new and test increase Vera collection Lowe’s being as select to be stores, Wayfair, purchased In partnerships on this VeraBradley.com, brand customers, and media for Depot. also provide Bradley available incredible engage excite can such strategically online attention, through These and ultimately to product Amazon, leading enter and

and about We are speaks partners brand. potential outside our continually of which new by the approached power to collaborations, appeal wide

analytics, the placements and last couple efforts. we to business to with science, up years. made have media build XXX%, data are by media Care awareness over and investments data continue front, brand our collaborations VB fueled customer Quality drive and impressions year-over-year On of the marketing continuing we upon in the capitalize over

customer and As lapsed year is count line the journey-centered our customer-level messaging expected, up are customers our over meaningfully and and dramatically our customer factory full of personalized aiding activations reactivation in stores. across last

more engagement on driving social are media. We

expanded expanded enhance continue have content, social are utilizing to user-generated our Specifically, storytelling, our and more have we influencer program, selling.

one. brand after We have Vida’s ambassador revamped highly partnered our Pura program successful

marketing our diversity reflective We of of including are commitment program, to all proud and our ambassador efforts, that our inclusion. are

Pride Hugs, introduced as honor and amplify to to childhood again collection their just season Cares always support back-to-school to hunger in of Blessings component once Pride Backpack our a will we Mom going mission. America. with end a Month continue Free this charity in our VB We We commitment in across

to to last the over have driver Vera months in making the front, revenue shifts major distribution pivot prioritized the primary investments growth digital strategic us On company. XX for we digital-first Bradley, a as

are shop a manner. enabling We seamless to her in

the through across Project experience the customer introduced continue to expand revenue expansion channels enhancing channels further will the all enabling digital the and by We growth of analytics. customer Novus, through capabilities

our strategy. of portion digital our shopping becoming There in our seeking for an important stores larger are revenues, to continue More comfortable experiences. pent-up omnichannel a is part interaction Although demand and a is more in-person stores. of be degree business customers supporting and are many of shared

to a the than where our continue typically focus the higher times we presence, and spends customer line omnichannel more over We average on the are markets reinventing three enhancing single stores. Digital and have in retail sales channel experience in customer. customer full

line the to localizing closures. profitability highest our full assortments, existing and by our optimizing fleet continuing are select our improve stores, and portfolio on our rationalizing of potential We focusing through

by high We continue locations more collaborations, full our through stores maximize since line have At to year, line we call far to up which marketing, bring closed to the three and performing would we will the to enhanced two performance drive eight XX factory and Operator, renovating adding of Bradley, full questions. new expect fiscal locations. and close year, will fiscal continue This six we distribution. this targeted year and XXXX. will growth up so this to total open beginning now closings product innovation our Vera to

Operator

first question from [Operator Mark Altschwager Baird. today instructions] Our come will with

Sarah Goldberg

just trying guidance how shape the more of the about raise. of came nicely to definitely thinking year? this magnitude year. a the morning, It questions. the in Great, within Sarah quarter first Mark. a With underway sounds start to frame the strong regards the thank expectations that we’re little Goldberg a about initiatives talk you. is of exciting you’re you Thanks of and outlook, for Then there’s like the for Good to can lot on our taking here, revenue ahead and bit

John Enwright

Sarah. thanks Yes,

our about we of remainder balance revenue year, going regards our we QX, season, months some then pent-up think be an it’s as think might we as months summer about the as demand consistent and done and past. to the when spoke in kind as be the what fairly historical being to you crosses we’ve opportunity, to the out As for well opportunity we back-to-school But look there. with think of we think of averages to there there, have consistent QX in between the travel think some you which I there’s over the winter the the season,

look there could as ultimately season, the back into in gets benefit everyone holiday and there be we we the some stores. think As out shops

Sarah Goldberg

secondly, mentioned--you Great, was and M&A I pipeline you looks then on you give us talked an what like the hoping about opportunities. could acquisition today. update

Robert Wallstrom

Absolutely.

conversations to one M&A, real probably give can In looking we are want find right people to but are different talking too that in prudent the we really at on specific comment over I and make sure the time. update you don’t terms obviously appropriate opportunities, market but we of detailed, actively very the best and now. we That’s

Sarah Goldberg

so thanks much. Perfect,

Operator

Our from next Research. question SCC Eric with comes Beder

Eric Beder

on year. start to Congratulations good a the morning. Good

Robert Wallstrom

you. Thank

John Enwright

Eric. Thanks

Eric Beder

year, production had--Pura is be Vida in right in you of the that and the have the to more aggressive Vida now, flows? flexibility Last terms of issues and of production some other Where do you terms some pieces. with even products, had now Pura

Robert Wallstrom

the quarter. don’t associated our third we it year, last Yes, really any impacted organization. Last with our currently and Pura production into second Vida so year--so issues have

we to, year. different than in need go flexibility able can better that to so for manufacturing place that we last we were definitely if the to sources to--we’ve a those year go different are we have spring the this We found bracelet sources, now

Eric Beder

also. to cotton. ReActive, Bradley younger and recycled rolling year you to here attracted and rolled the year the to into of out customer, Great, the flows that you and terms for selection, environmentally in push stores, younger Vera a a little who’s you’re The wider do back-to-school obviously you friendly seems bit be this the out last that is seeing coming Vera customer see--are How being by products?

Robert Wallstrom

Absolutely.

sustainability of being all customer the a we that through as definitely channel, down Cares. other do as seen younger we kind well moving VB been activities have attracted we’ve the that, of by As

all the age all in millennial and approach XX customers new on significant group. the that range, core think of collaborations, our with us it sustainability, terms influencers, in social made seen of one the advertising, from which the really year kind marketing, of that the we’re growing past, is really group, have targeting between I a focus the the XX has media more to We that is underscores to fastest relevant change

Eric Beder

you maybe And seeing let me little roll out thoughts last here there bit out question a cadence more that with and you than - one performance just Are that? now? changing in are squeeze the to twill, any rolling what

Robert Wallstrom

into a of little dinner, what that opportunity we’re our I environment, it with It’s in lot of a than areas. us. in really bit to cleaner, the a We twill there. new solid expands a unique of nice, more see we growing In them performance think it’s one there’s wear our to gives our a years customers’ little overall, - it’s being getting it been terms new ahead. so brand bit the lifestyle, more is, definitely for of Vera to definitely categories think customer. and able that It’s right think it bring a work fits to part product people opportunity Bradley performer real out good the normal We the dressier response

Eric Beder

luck Good year. for the Great. rest of the

Robert Wallstrom

Thanks Eric.

Operator

Thank you.

from question come will Chen Cowen. next Oliver Our with

Oliver Chen

On you to you or for price-slash-malls and traffic in improve XXXX? to your very how fair you on evolving outlet, expect degree store relative Do full of to traffic, see relative what continue much. volatility this Thank to over seeing do a you are comments time? it and

John Enwright

out volatile. be would traffic down to at mall extent improvement continue the see out, hope a is versus in get as traffic. Yes, first we We in do so traffic, vaccines traffic we it’s going more going outlet greater get then this roll traffic people comfortable malls, and factory as the and an to mall anticipate and to would ultimately year hope still to

Oliver Chen

be market, port might environment? what’s you on risk dynamic your plan and labor within factors what the Okay, congestion as in well there this as control as on your inventory and comments

John Enwright

and what’s in, our what determination Yes, so on really to freight we ship a is need in. launches our looking within control future versus air at making may

As looking appropriate you versus of and lot know, air the future at what there’s is to the of what’s through in the to lot in many there’s our retailers, level container at so appropriate just shortages, that launches allow look a determining with ship ports, a other ultimately congestion we’re basis. level to and

Robert Wallstrom

is is think other that think only kind in to look only whole just more too going happened this for design we in do because little is I months. the from like the orders in at port really say few and things placed, too not to bit are the a to we’re feels reliable. for process the finish was time that ourselves environment are chain that--Oliver, going space, we’ve of to be I the can, so take a really addition look thing of to to at when be give managing going the through while, best congestion and to It we complete supply here that a because trying what’s it’s start more all the design way tried part less getting

Oliver Chen

the a unit and/or do topic mix you be evolving, and pricing How inflation, regarding average Bradley whether and major pricing in retails industry your right driver brand leverage or sector that like-for-like? that on it’s now. Rob, Vera see

Robert Wallstrom

are because have there fast. raise in from definitely prices think too at and to position want opportunity some we evaluating looking Yes, be that’s definitely pricing that be we might an important we careful, to pricing that terms But I we make a we in standpoint, watching think of we environment. so want that but are don’t sure the we something

at Vida, that definitely Pura are at sure. think and these of be look kind inflationary opportunities what watching environment business, the taking on pricing might the the we pressures a for but of I also we’re side

Oliver Chen

in Okay, priority most road of is modeling a you great and the factors. financial the impact the hanging map, lot fruit, list? innovation and/or on digital lower say gave What substantially will would you

Robert Wallstrom

Pura side, brand, I marketing, reactivation, key iOS think our a as particularly the pending I journey as updates, really with critical paradigm them we Vera party and first to Vida to continuing owning the not we’re customer that and push because the Google data And moving on the updates, data couple through becomes own the that digital Bradley we’re to only focused pieces. quicker grow today digital. there’s think that’s been probably targeted now, data now. so party the along One, first the analytics they customer but think direct on at marketing part really of be super move haven’t will critical having our working right data,

Oliver Chen

some dimensionalize Okay, and you percentage final to could a for expect of partnership Pura given you. now, happen and why two questions. On are deal. there synergies that you what that non-jewelry revenue time that the view it’s a that made powerful key the had why lifestyle way of us brand? If is any Vida, you what to if time, thredUP, over over could elaborate Thank sense, from on

Robert Wallstrom

early category. years that multi think and much customer, balanced with of what results. Pura because I about become of backpacks, seeing are and responding so lifestyle building With up nice sizing, jewelry those really launch we’re heavy significant just more a brand some the the collections a to, definitely provides we limited, but Pura we’re Pura apparel Vida opportunity, over the Vida think some on lot really instead Vida she’s learning from just real that can Obviously

categories. out significant term build there’s as those we opportunity think long I

upcycle those definitely their the so lean our give opportunity hopefully a scales newer with why customer of We program thredUP environmental, results, did continuing, as One of just a of use We this some the they customers see think clean In it’s were for kind you it early again a and to into few know, it, out how Bradley on stimulation really focused ability have to know reasons us up there an terms the launched into loyalists continues really product. Two, because of is gift partnership. buy a But provides environment. we for of more revenue. new thredUP, cards space, the to repurchase opportunity lot it for time. pleased Vera to another be us. been product, we lot over just open that we’ll can the Vera Bradley future and we’ve closet,

Oliver Chen

on front, another focus topic will you a the think most from that a this on angle, as what lot? Thanks customers new Rob, about you you and generation sustainability purpose and the what investors measure care care what important, should as think about customers and do about of and and mission

Robert Wallstrom

as to stopping platform we I respond a We impact so focused over I couple needs, more the simultaneously, position environment, more - corporate encourage continue the but have to how the to to short of a issues out emissions, plans if to what it forefront base could we which a lay path younger would on really customer even to second on on water next impact, we’re focusing answer there, environmental our environmental started address sustainable citizen, of out was felt, But expect out the the move important, different have to good just impact. on there. kind side. the is important under everybody way really think our we continue have and continue environmental coming by details all, what’s year one, that of and term the important. felt we scarcity, would ways that to going I so was Vera We think to the we’re biggest more becomes that. do biggest really not fabrications, being is that, team watch social the Yes, a a maybe as the fabrications supply down zero not But One we right? environmental chain, as there addressing Bradley in customer seeing more

well how of, in the be we’re important at years charity As over Bradley done build program customer us, the looking as expects on leader foundation that want impact as the think continue our really invest has social this. critically that become bracelet in we’re from of this whole so part and purpose an Backpack, purpose. category strong environmental we’re Vida, that very younger a to resources Vida, Pura industry have to is that’s positioning, to community is really they this time ESG charity to to Blessings and to how the of of Vera But a brands important out apparel program business that the going and everything the looking the and to part we at really Pura to brands

Oliver Chen

you, Thank regards. and best

Robert Wallstrom

Thanks Oliver.

Operator

ask questions. Once your star, signal one if one press you. to telephone. please like would Again star, would like on with is Thank that you if you to touchtone questions, again,

Steve Our Associates. with from CL next comes King & question Marotta

Steve Marotta

Good topics morning already a two and we’ve that have John. follow-up I on. Rob on touched

to a first there of The from maybe opportunities are geographies, America? remind a is that Central total, can the related are there, and us where you as or sourcing to maybe percent shift non-port of a geographically, some like you standpoint, as follow-up Mexico production

John Enwright

the that could the be XX% where now it’s Southeast out remainder of are source product, we’re is we will our and Those it of - of, out the opportunities of but majority looking main Indonesia. opportunities, right for Myanmar, out we’re in Asia. is call Bradley China, it other product likely whether is The for Vera of Cambodia, near our Asia out brand of Southeast out the countries term

Robert Wallstrom

since then of lot America, Also jewelry the around same and product, - out in having is Vida with Pura port And of get with in of that’s have so it’s opposite, stuff of the other with a is we’re issue. even the to don’t we Vida, of Pura Central port world, Vida it that easier air majority parts coming right the kind the Pura issues Vera is Bradley. it

Steve Marotta

helpful. very that’s Great,

bit they’re can availability multiples the little say two could you talk little being say, say, a maybe they’re I could as about Would availability current versus, on comment lower of being higher the lower? Obviously acquisitions that financially away ’XX, given go, that for been about far years fewer, might you distressed a ago? because As two also coming but maybe more or out talk if maybe and currently looking pandemic. have years from, higher other are not specifics, just on maybe but asked you the valuations. they and there hand or see

Robert Wallstrom

different are the that interest companies wide that right a definitely one, very comment is are biggest individual would That’s is There’s we I pretty just in company. coming now. to though, different, maybe the more coming out sitting they’re say, past, the difference it’s would based fit seen right upon say valuations is that tricky, see What are that for really environment What saw because hard sure I range that years out right ago. company still - there’s is two out the to I every are earlier maybe there, that’s each that probably obviously so there. companies making more is would stages direct-to-consumer so than market opportunities we’ve in in there our earlier

John Enwright

would for activity we’ve years I acquisition, I or us our that just with there’s inbound little I activity-- only completed activity our for add bit ago, I looking versus Bradley, first think if think apples-to-apples more looking a now Vera more two we Yes, that were think more when there’s so probably first you’re acquisition,

Robert Wallstrom

deal Or yes. flow,

Steve Marotta

That’s super thank you. helpful,

Robert Wallstrom

Thanks Steve.

Operator

comes question with Advisory next Group. Telsey from Our Dana Telsey

Dana Telsey

second impactful? Hi, in the you year, of you good they in over revenue for quarter, were contributed basis margin. the sales, around part the of Bradley year, XX% do and important most everyone. was of the morning frame XXX second that gross an or How points quarter Last Vera it mentioned masks the rest

John Enwright

most definitely the the and of fourth and percentage a and quarter. for you But as down it impactful the total think quarter, it quarter. third was definitely percentage so kind still it was the from year, into second Yes, quarter last was of--it impactful of margin, about most impactful gross the then went

Dana Telsey

are the are and to customers within reopening, as online them it, Got network? your seeing how sales, then from keeping online, stores the picked and you happening you are from up what you that

Robert Wallstrom

think I couple a things. Well,

have great we’re that think holding of a volume, which ecommerce ecommerce is stores lot what was on early read I the one, opened, was of that seeing as to see.

last As looking at on stacked stack as ecommerce masks, have kind it’s whether But and what happened. obviously focused we’re definitely of there’s peaks really looking we lot we’re the strong to are basis it at at year our business, of very really on two-year we look growth. because and ecommerce, whether and a expect a about about two-year you valleys it’s

but just that stores as it’s that is back customer strong fun think of engagement so exciting summer continue channels, Our travel to that all is it still environment, to to having loyalty, to be see holistic we some term really omnichannel because across watch the to for back movement important begin to months the going ecosystem and customers long is to brand school. do

really apparel I was bought this think pop clothes and that got in pop year, out as house prepared, hadn’t their they of strong what first in everybody spring we saw apparel. last a nice and in got quarter industry-wide

We’re months times see we more school also travel brand. hoping as the begin Pura to accelerate. to key be and even Bradley that will brand Those only we Vida not for get could into accelerate summer the back the but Vera

Dana Telsey

channels? the what and cadence of business the factors business, it do of the of just as Got each you the you think indirect it. profits as behind of or direct and direct the margins operating operating see those the Then indirect for about

John Enwright

with product we not have quarter, to associated as making As I season. in getting with the in associated the the you have appropriate some sell, think the the Rob hope I associated product of think to travel we to about sure some years the here and think going regards have, logistics we headwinds it, there as indicated in just and with really side the have be just be and second back-to-school that it’s the about business headwinds of may past. will opportunity we But

there there’s get Vida. from school, opportunity think back Bradley there from which a operating performance think drive come perspective, in sales, a does drive on kind there’s Vera up As Pura a of will but from and Vida nice so we to leverage there. a also those months, opportunity Pura we perspective, customized business we to bracelet

Dana Telsey

you. Thank

Operator

Thank conference over you. I’ll That session. answer does and now remarks. Wallstrom to conclude for Rob closing back the turn question the

Robert Wallstrom

you. Thank

purpose brand, growth drive, forward-looking to high be Our multi-lifestyle strategy is a company.

culture, We have loyal future. an a extraordinary an the customers, vision team, for exceptional and

and successful sheet, position, time. cash continue and strong Pura digitally in two will cash balance to brands acquisitions free similar invest debt-free ability brands to us appropriate of comfortable, our to other Vida generate allow acquisition our native seek out purpose affordable, Our flow driven, powerful to to over

In Bradley for fiscal call and interest over income growth us hope ahead our XXXX value Inc. for fiscal fiscal Thank future can we deliver an have to performance. of both Vera on stakeholders. quarter time XXXX, expect your X. exciting all join we look and in you XXXX operating forward We second We you double-digit creating and to and for our September revenue

Operator

participation. That does Have for today’s Thank day. do conclude conference. you. excellent you an We thank your

Vera Bradley (VRA) 9 Jun 212022 Q1 Earnings call transcript