VRA - Earnings call transcript Q4 2022

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good morning, ladies and gentlemen. Thank you for standing by. Welcome to the Vera Bradley Fourth Quarter and Fiscal Year-End 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 -- turn conference is reminder, go Vera a As is Officer. Administrative I to Mark Please now Bradley's over Chief being today’s would like call to the ahead. Mr. Dely, recorded. call conference

Mark Dely

like Good We'd you joining to and morning, everyone. us for thank welcome, for call. today's

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

Rob Wallstrom

set to Good further product drive John beginning strategies: me enhancing our our executing the Mark. out digital-first earnings through you, thank continuing today. engaging through evolve Vera growth for joins our and further and our Enwright, distribution we strong call. franchises, brand revenue pipeline, enhance communities the Thank and also today's to channels. and Pura year, our and marketing, two strategy, of Bradley Vida, you innovation CFO, four-key us joining morning, our on At

pre-pandemic strong generated both and year-over-year revenue a on cash we over levels. consolidated these made to brands, During fronts revenue headway the increase return flow, year, XX%, for of delivered essentially

Bradley total XX%, a and customers targeted product year Vera by revenue brand increasing over our responded with innovation to marketing. of and driven year-over-year data Our as solid collaborations had growth, supported sales

base our diverse. more grew younger Our demographics are year-over-year, customer and and

sales Our for over Pura double-digit Vida XXXX. brand and saw first Vida just successful year. in We during retail wholesale opening X% total Pura store grew our the growth revenues fiscal

the in However, companies shift falling to social Apple and expectations. DTC effectiveness of significant the update e-commerce digital resulted in affecting media due sales IDFA short

EPS series the relief, we tariff other and Apple unprecedented a to the renewal digital delayed year. including supply during dramatic and GSP increases, macro update, full increases, IDFA approximately of faced our which freight GSP issues, all costs of substantial cost by year. combined materially addition advertising of the affected profitability delays The incremental and In cost impact for the chain $X.XX freight affected

affected XXXX. our Excluding results -- have and these the throughout $X.XX. countries challenges of the of margin some at brands issues. chain status inflationary supply our to of fiscal tariffs both what fourth, two or improvement GSP, our year implemented beginning earnings, supply were source Preferences, two these we changes gross the to increases duty-free company from original brand. price is in expired implement more price quickly. line particularly increases lower year-over-year Bradley of duty-free higher below the related previously and and rising Generalized System across gross to our mitigate initiating to those freight throughout The to chain increases began offset price are In more strategic than GSP pressures, XXXX. continuing expectations, should the negatively though of In Even XXXX. $X.XX costs items, deliver our GSP have we with products have in would specific earnings guidance much more price put to would we or we The the we of rate hindsight, where Vera whose reflected margin should continuing

pass on that early year. GSP the the they But would of past, in expectation such as to Our legislation the retroactively In are head legislation reinstated still the the Congress status XXXX. has XXXX. duty-free was tariffs Congress beginning into we of the working

are and sources retroactive, be certain expecting this we Although will still government or not it to happen. industry if when are

our our XX-year to shareholders through remain in continued to continue a repurchases. return challenges manage lifestyle free invest shareholders million macro year, brands, sheet, average advantage growth We ample year and generated of and fiscal diligently a to Even in slightly last flow, the to continue we cash position our opportunities facing no ended repurchases cash additional $XX debt. capital with with through solid stock take we million of future over and expenses, the balance of above We strong of two overtime the dividends. returned or and $XX to million $X.X share

organization inflationary wins remained dramatically the, achieve strategic environment. through rising on Our long-term and the navigating focused key while

allowed made is not critical more during even persevere stronger but through this tight us has only challenges, us market. and culture extraordinary Our labor these to it has

Forbes extremely Just Midsize Employers last XXXX. month, the number list to one of we America's were ranking receive for the honored on Best

is culture our key of advantages. competitive one Our

to business fiscal we the in propel four on were brands focused strategies forward. our and XXXX, noted strengthen I keenly As

we of sales pivot We digitally technology-enabled focused shopping excluding into half data-driven, of engage First, stores, experience. over factory effectively our driven digital-first to continue evolving customer-centric, which shifts a made by are one-third e-commerce. with our and digital enterprise, company, strategic consolidated us sales our and generated are to total company now our allows revenues e-commerce to from our offer customers and a to and drive seamless investments strategy. us organizational first a Over

enhanced Second, product further innovation category and collaborations extensions. we our pipeline,

Vera customers build customers. brands lifestyle and Vida continue increase attract with Pura Bradley to wealth of We and existing to share our new

customer bases marketing, and we community distribution are Promoter our We consistently diversify satisfaction grow efforts. of for build and Both at rank channels. to our industry the both through through scores marketing. their targeted engage, to And continue for further brands. fourth, working we the top our evolved analytics, Third, ESG brands customer Net and

mention including with our are accelerated future store ways Harry innovation environment. to reinvent targeted customers At robust this and customer cotton year our the Potter outlined both and launched few. brands, reimagined we brick-and-mortar. retail We and our me of reach both looking during a in continued and experience options Disney, engage, accomplished a of our but Vera The to expanded to list process collaborations VB collection, the to of and efforts. shop Bradley, base ever-changing complete expand our just allow of base, and to the high-profile brands analytics, product rationalize digital grow continually shop, for Peanuts, strengthen apparel for our new Care's fabric morning's continued launching chewy.com. several and Canadian combination a iconic lot and including A is through website diversify our added will distribution brands, we another our powerful continued year. to marketing in At customers more continued to And on and be collection, release

bringing us count nearly grew year, back to last by customer levels. pre-pandemic over Our essentially XX%

into Facebook new and Disney X approaching and Hello And Instagram several to brand. product at Potter, with grow bringing million, our customers social Kitty, At including XXX,XXX, climbing. media high-profile followers Harry TikTok we Pura nearly to continued collaborations entered Vida,

is of We San Vida unified full-line August, is to influencer to on store is completed Bradley brand in as integration that continue shop-in-shops UTC expanding as product appealing in to our Madison XX star categories with distributor. position which now first customer. XXX platform. apparel, Westfield technology strengthen new Added entire including Diego's a Vera our stores Mall collection lifestyle performing a Bailey, which partnerships jewelry and Pure and into retail expectations. by our Nordstrom's new our Bank launched Vida's well diverse enterprise Opened and over store Added more department Outer Pura a a ERP ahead so first wholesale

Vida focusing was the inclusion a and and continued strengthen and Russell initiative our B-Corporation to the diversified Directors just of amplified the Founder Nancy bringing awarded customer of organization. further Hair Board balanced with representation support of community umbrella CEO Twine, efforts Briogeo Charity X% us and its of female our and diversity of strengthened and reinforced experience, a continue through the enhance on B-Corp company-wide VB and companies under and key charitable We Bracelet growth program. XX% We We its Cares one Pure of making to diversity, ESG inclusion, to the with impact XXXX Index our Care, And addition certification. Vida purpose board. equality we commitment to our be and only driven the month also last assessment Pure experience. our experience Board three associate community our project areas: to completed gender

the let the me results. John? Now call turn financial review to to over John

John Enwright

Thanks, Rob, and morning. good

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

of non-GAAP we net Pure primarily were refer $XXX.X e-commerce increase for of compared of year-end totaled margin Consolidated totaled fiscal XXX with per revenues per X.X% in our a in year. share For orders the replicated decline to Gross year. year by net million this partially share prior segment $XX.X million basis Direct approximately margin the for the basis for prior impacted $XXX.X to or $XXX.X from essentially in numbers, million $XX.X XX.X% a fiscal GSP basis totaled not XX% press an revenues points net of increase approximately $XX.X XX.X% year revenues revenues million million, for over items significantly was by today's of please numbers current the the current gross Consolidated negatively $XX affected diluted cotton $XXX.X which prior revenues sale detail million as masks, the over the or $XXX.X $XXX.X costs in $X.XX year. offset points XX year, fiscal in negatively a The $XXX.X the to Bradley year, approximately over XXX a $XXX.X Vera or in totaled revenues. excluded million the the the by was year. higher account Indirect year and prior reconciliation net GAAP expanded points prior well million in issue. diluted from million prior XX.X% as million, In that Bradley million increase freight wholesale million, current Vera complete year the the of rebound by compared year. or for of segment prior release. segment for through non-GAAP to Vida income totaled $X.XX a year, profit COVID-XX, revenues. reflecting flat

in the in million year, $XXX.X XX.X% to of net For of compared year. totaled XX.X% or revenues prior expense $XXX year SG&A the or fiscal current revenues net million the

were expense As expected, due reductions expenses to was year, no achieved longer COVID-XX related Year-over-year leverage higher last to primarily the current are year prior higher revenues. on expense applicable. that than year

$XX.X year. For year, X.X% net the compared fiscal or current our operating the of income in net prior was million revenues to revenues X.X% in the $XX or million year of

to compared compared fiscal Net $XX.X prior turn to at and $XXX.X the to inventory fiscal credit We cash compared on for totaled in last ABL million Cash year-end. our to million year-end. $XX year. no Total year had let's year-end, at million fiscal facility sheet. totaled at borrowings $X.X prior Now year equivalents balance million million $XXX.X $X.X spending million capital year-end. the $XX.X the million of as was

common repurchased we quarter, approved will which $X.X purchases we our of XXXX, the the at anticipate our Board to share date. in $XX fourth bringing before We an XXXX. $X.XX, repurchase expires a million well million. the average $X.X approximately our year-to-date repurchase entire million of authorization, million December price expiration $XX In During stock new

seven years, we to company's the X.X equating $XXX nearly of million million Over last stock shares. the repurchased

to our shift XXXX. let's fiscal Now outlook for

for estimates XXXX that and and non-GAAP. consideration such fiscal trends are digital forward-looking as numbers will providing headwinds on economic I continued based expectations, certain current marketing taking are We All discuss freight guidance into industry increases.

diluted Consolidated primarily to compared million in XX.X% gross year. expected Net prior to and million, average retail Vida For to based million. year. $XXX in in compared cash spending year. weighted expectations new flat to revenues Consolidated factory in stores are investments million to $XX $XX.X $XXX of price is $X.X grow EPS and last Diluted follows: on associated Bradley are primarily operating of payroll The up as $XXX.X to be $XX.X with higher Consolidated by expected inflationary million EPS reflecting Consolidated GSP million Pura between year-over-year Consolidated inbound costs. $X.XX to marketing mid-single-digit million and million are fiscal in well the related $XX Bradley Vera our Rob? $X.XX margin of gross million the increases $X.XX expected totaled Vera capital totaled million to to offset revenues variable compared partially and fiscal increases related as sales increase million $XXX The XX% guidance. new single outstanding $XXX.X million enhancements. million to expense expectation. $XX.X $XX incremental flow to XX.X% of is to million to fiscal of increase logistics Free Net general to associated $XX.X margin of XXXX. digits. benefit year, $XX and income million SG&A freight is to Pura shares $XX.X Vida outbound Year-over-year approximately million SG&A compared the by in revenues XXXX. compared year. with prior in range, in technology included $XXX prior XXXX, diluted and the to No last of increases, low to net revenues stores, as low

Rob Wallstrom

Thanks, John.

community to only we business, and strengthen and and revenue strategies, By shareholders. brands four not to core XXXX executing channels. we strategy, our will first driving continue and on key opportunities product earnings our return continue look further evolving distribution through strategies: in As our innovation pipeline, invest beyond, cash to enhancing meaningful the to capital two our remain growth digital will we generate our and these against but stable fiscal marketing, we focused flow pursue deliver to growth building

our two brands. about talk Let's

update demonstrated fiscal an despite brand. disruptions. quarters chain with over begin Vera solid Bradley XXXX has experienced Let's on solid Vera growth the sales Bradley four quarter fourth and supply of comp growth

to is and market in distribution, we working of and fiscal share. each and continue innovate areas base our product, marketing into will continue to lean expand what these For XXXX, to in also customer

Bradley to low to forward, growth cash mid-single-digit company's expect Going the brand, majority annual Vera we the generating be a of flow.

continues innovation. be of and Travel, on Crocs. to our this XXXX. We're are On to fabrics on year, on our responding exciting eco-friendly areas to constantly the our new Harry a focus three front, customers and of innovating to more continual Potter, our Everyday, into alternatives customer-centric our sustainable mix franchise Youth XXX% in product some building target bring Disney, thrown pipeline adding updating Campus. our in to product of another product of fabric options We're core ones Customers planning of by more of the dominance and addition year Peanuts our collaborations with like and the continuation fan with favorites

pressure. to of drive continue higher will first increases and price AURs our the will freight-related half which We year, throughout gross margin implement offset this

will if be Additionally, legislation passes, margin. GSP this to an benefit eventually incremental gross

Turning to marketing.

adjust us respond changes well, spend and marketing data Our data science and customer to investments to analyze a position real-time way. and basis collect in continued and agile customer analytics in allowing an and to business have us on

looking of its continually traditional re-platform customers effectiveness. that brand and to our to will digital direct going placements, its Bradley manner, for Pura and capabilities to Vera media engage becoming brand our helped now channels and Since leverage their awareness, both Vera mix Vida expensive a traditional platform has Pura focused Vera continue and for marketing enhance mail, company's more but forward. will And Pura digital our introduce with targeted Vera new ways acquisition Bradley's shared marketing to help Vida, Bradley and be be on ads. new We e-mail, to digital challenging like Bradley's customers, able TV is creatively of expertise a blend in are Vida brands. grow of the XXXX cost-effective PR quality marketing more

strategy. digital-first we’re distribution seamless shop are presence. integral as spends sales higher more the omnichannel her and where customer in growth long-term, how be the want prioritized primary this Vera a to an driver average Stores making manner to front, we channel single customer. Digital have strategic us omnichannel times in over digital shop company, than And to On investments part and typically continue wants to shifts a over major of the a Bradley, the shop. but we where she have her revenue retail pivot the to enabling for three to and markets,

a select are We by the to remains and store appropriate, highest which fleet focusing fluid our potential improve continuing process. profitability portfolio our as of through on full-line existing our stores rationalizing closures

also five to factory We expect open stores this new year.

they our where On the continue we side shopping. marketplaces customers of meeting digital will the wholesale are to Amazon, like expand business,

to Pura switch let's Vida. Now,

I we to successful growth fiscal wholesale resulted and As XXXX. previously sales in store X%. causing Pura revenue underperformance double-digit an just total in in a Vida challenges opening Pura by retail marketing grow Vida, at e-commerce, mentioned, generated But

against fiscal We resources in XXXX. are putting addressing that issue

For to next Vida's continue growth a the normalized Pura revenue play range. the product collaborations key innovation will mid-single year, long-term to we to role expect Pura and increasing be Vida's AURs, in area, In low growth. in

We are and year. later collections, will Hoodies bottoms continue to continually introducing our apparel our designs and collection Tees build and new jewelry elements this by adding to we of

brand. We building a lifestyle are

in on Pura by more fiscal As boost fourth margin I than quarter, pressure AURs XXXX. offset noted, in began and which Vida increasing the had products continuing we pricing freight caused increases

priority turning Now, our issues marketing is for Addressing the to marketing. a company. key

three process Bradley. ago and Pura Vida, our did talent We years Vera of analytics data marketing at platform are internal like much the in at we strengthening and

will agency with TikTok, and it these Podcast other analytics into our and build SMS to time platforms Our resources a e-mail diverse We spreading YouTube. take marketing a base, like, know traction gain program, of marketing other to and our a growing teams continue portion to work like more diligently subscriber deeper to balanced and marketing dive new platforms. customer onboarding

digital traditional Vera As to their more be able Bradley becomes diversify marketing more help e-mail, to they and as leverage channels like Vida marketing will continue costly, mail direct Pura program.

In addition existing focus on will and new stores brand. to changes, marketing the customers to attract engage to our customer the we opening further to

new allowing exceed demonstrating Diego since expand expectations, loyalty innovations, us new array is as experience omnichannel spending. like and lifestyle apparel. store sales, continues the full presence our to products Our San the improvement store categories country Pura double-digit to the business digital rest showcase to product into of especially in we existing our Vida with Diego The a to opened, and in has and e-commerce we power of continue driving store a San the relative retail the product

are excited about additional we So growth. store very

second Vida year. County Pura Our July Irvine store open Orange Spectrum in will in this of in

of another open Coast growth location the summer forward to store channels. one we the will to expect the in online growth store in We in And on tourist look and East a future. future and balance Vida's distribution in physical more additional beach growth high-traffic even growth Pure be store this fall.

acquisition marketing play stores continue in an role platforms. forward to we important going diversify Importantly, will new our as customer

we to new call now growth remains continue we questions. this open and the to expect add will strong, Operator, wholesale partnerships year. Our to

Operator

Thank you. Thanks. [Operator with first Chen Cowen. Instructions] We'll Oliver go to

Oliver Chen

Hi. Thanks everybody. Good morning.

Rob Wallstrom

morning. Good

Oliver Chen

to on issues? incorporated risk the pretty Vera in incorporated for different. topics, your are guidance guidance, then terms chain what channel They're Bradley conditions the factors gave Would terms you. of your of both ahead low mid-single? and privacy, both what's Thank great And what's stabilized those the Bradley on to love for thoughts. Have on pricing your of in details both? what's and those supply in relative guidance in lot you -- a the Vera thoughts

Rob Wallstrom

Oliver. Yes. Thank you,

for about expect at In do price revenue Bradley overall will increase the the terms growth be price we to think of that and close the entire growth. assortment we revenue Vera increases, as overall guidance,

changes the to this platform the we're And talent, they primary pricing media platform, as thinking So hoping assortment. part in continued believe freight analytics another kind be is that Vida, done. with incremental focused were the marketing be for there's freight driver we're about to larger growth We the on to Pura Bradley on of on we're very, campaigns product Vida's worst ways year really avenues algorithms should out marketing that working off incremental costs marketing. the we through through that to At way know we are out third-party be digital Facebook sure increases. to there's now the those expecting then way we're couple be kind cost, in more upon the looking focused will in work talking to at and influencers, very platform, anticipate of to in of price traditional of price cover we so But we of reliant work of of really we're privacy, marketing and Vera that mail but really leveraging that evaluating that social the increases increasing. marketing. terms a through like more is And we continues as about bringing like the balance ago believe it, that did still at the more bringing other be Pura years and to direct make opposed being first-party what

have be are a more this developments work year. and detail under bringing we'll of we lot there, So over that

John Enwright

the to better. We we've year. get to and this year ultimately, slightly The only expect only add regards I seen be better thing still would very in challenging it question to logistics, a

historical cost the of you to of years, container previous a a sense ports, amount contract know, we've going of what that's appropriate in our previous if to Xx about believe kind anticipate are logistics just As in it container, is on years, what think cost environment, you network. now everything pre-pandemic, our the and be in But with into pre-pandemic. on we used built you about that's the increase, macro the is give we our of in everything going the guidance scale

built numbers. we've on significant number depending we're amount. if out things guided on spot. everything That into could it's to anticipate believe things buy and right we But our towards, So going range is a obviously we now,

Oliver Chen

on that -- you price know mentioned you you And Okay.

Rob Wallstrom

thing want the make more to mention, that mention just is we done guidance, building one is on that sure any relief did to we have way in not failed we're I just we GSP. Oliver,

could GSP were be incremental get that if to past, an So benefit.

Oliver Chen

very change helpful. increases easy price very then prices your you prices mentioned distribution you approach you How you in It's that? is given surgically what will your necessary you across portfolio, and That's you measure And the the increased for do not Okay. earlier. had as And market think remarks, issued look to channels. appetite for elasticity?

Rob Wallstrom

the not how Oliver, That's and is a you're the of great And deliver for style. is most fact we question. easy the our continuation prices definitely change chain right, the in our us, upon supply just based of product that diversity in

make as to that So of it they to through go were because change working year, started challenge. last didn't as too and And was it we price on to that prices in. deliveries rapid change that a of forward We've sure we not we want come being work shorten was ability one to decision respond But quickly, we we the been quick. that timeline. reasons can we and our in fluid more made

are change that, as begin So key. we really think we monitoring is, And we a we're doing what to then, prices. that's

prices, We end of items did Vera the have at year of in our Bradley. started to few the we factory change a

also Vida. in We to price taking started changes Pura

we not reaction seen from have So far, consumer. negative the any

to continue the year. we this raise we that see as continue prices, of first hoping throughout half that we're but So

Oliver Chen

your And and the see about question. partners? Okay. Rob, on as relative think channels opportunity to last then, outlet wholesale you strategy Vera most the you channel retail do what at Bradley,

to know really your Thanks. platform? on you potential dividend, a position strong as as what's building capital terms have capitalization. You in of shareholders returning I mind bigger regarding a but mentioned well

Rob Wallstrom

Oliver. Thanks,

I have few think do do other of still that business at. One, and upsized is as I looking we're e-commerce in probably critical say the full-line areas. full-line think that think like Amazon we our everybody so the But a to is factory area say terms going more places real would But I plays three a the them, wholesale, division, role things on. e-commerce believe are provide growth that begins growth. that different we what the distribution, particularly we that travel, an would we bigger for even

do about very As It lot of a right, balance cash have we strong good you're capital, ability. flow. very you sheet, think gives a us

As as we first year. want the to know evaluate, last sure we've do we're in valuations growth were second, as priority of we make our said, our allocation. higher But what's in to funding capital we always marketplace first terms continue

we our of part repurchase story. And the having last including share that's share like conversations continue an plan other So see to million think highly disciplined us future that to we didn't the shareholders remain are that the dividend. announced. a we do opportunities, highly, standpoint. but the of repurchase, we going be make our we're do $XX We've seen the is returning important. last market, with we you we anything we believe but with to year year, evaluate that to something capital valuation sure And Board also exploring But all want from important

we'll there'll the So future. I'm that that be more talk sure in about

Oliver Chen

Best Okay. regards. Thanks much. very

Rob Wallstrom

Oliver. Thanks

Operator

next to Eric We'll go Beder SCC Research. with

Eric Beder

morning. Good

Rob Wallstrom

Eric. morning, Good

Eric Beder

an you you about issue. a going kind it your are Could What continuing steps of of taking there stores that your -- that remain talk is so depth logistics can the morning. to -- flow ensure Good in be? that the little the product are and have to product a bit is

Rob Wallstrom

great It’s Eric. question, a

product airfreight you look some opportunities, challenged as levels, we Eric, and looking to So quarter. in-stock we're know, the fourth was in-stock in at as at

a Chicago taking L.A. of down to to better position. through we We're utilizing beyond So last and the looking truck to air air having versus little the year through and different freight and Wayne. seamlessly then also we've additional things what ports bit -- get into things ports product and Fort different above freight at at through through in spent more a taking in kind ability looking it been train bringing our

to at kind an regards options of to a we're our place making better sure in we get So looking of all from in-stock level.

John Enwright

that earlier, think we the I extending the ex-factory last placing were starting though, is what have the that what too, orders to we did one, we delays actually big Eric, other between date in year, time the started and the be out of and we and to some move quarter. we goods, as see second flow first the to quarter benefit begin the into receiving that the date we close begin should should through

So that's chain. while just the we last one to ripple action that through supply a takes It year. took

Eric Beder

look ramp I to, bring guess, to? sure those at you Bradley. at know to if those keeping that some and I Great. you When Vera Pura you look wanted the And the extent that customers do they collaborations, you they're at Vida. fresh, continue How of at making relevant in up kind

Rob Wallstrom

Eric. question, great a It's

In collaborations terms partnerships them have in licensing. part lot terms these and IP making that fresh, of access broad it we're of and is very a of of at keeping a it looking sure

think about So as think World different it's of about of franchises Disney, it. you you whether of a lot Disney, as inside the there franchises, are the different

bring because that believe So key that. to how we're And we freshness it. exploring do really becomes your aspect a continue we of freshness, to point

of of be I about next a even exciting out as partnerships we collaborating see some franchises So these that continuing, talk as see lot that collaborations with. we'll really year, we're you'll new these this think come you

Eric Beder

and round here should different innovation done much Vera years, last the next Bradley of Vera or we What's set that. the fabrications all three whole your news, here for basically thinking kind changed you of kind question, of talked the you've a be at too? about fabrications -- And you've you've creating lever Bradley. as Great. about basically over four thinking kind pretty What the last of

Rob Wallstrom

do of Twill. the done So fabric innovation Cotton really good a from a adjustment we And in we a we base. tremendous ReActive, And feel you're have continue a standpoint, gives think some innovation minor amount last of that base fabric but to us there, terms with over we'll have introducing work couple good Performance ReIMAGINED, fabric years of from we standpoint. right, -- a it very

we are move as talk going think forward we I think about how what category in One about innovation. is, we with to extensions.

business. the on in had footwear cozy part extend the expanding market, as been our into continuing apparel, us seeing particularly decorative success you're the the home market, slipper type bringing flip-flop, around So products products home we've categories, around and what's things of out. in to We've happening of

you'll innovation to forward. out of I move would see as us three a -- really think of important coming be areas we lot those

going think of innovation more novelty in. we freshness. continue patterns patterns and to just and new think forward fabrics our area patterns our looking third just about as bring see us and mixing at how and and they more some how I you're to go how the ways that bring It's to bring interrelate we to

think lot I Vera Bradley. of at in a still channel there's the innovation exciting things So,

Eric Beder

rest All and luck Thank of year. for you good the the right, guys.

Rob Wallstrom

Thanks, Eric.

John Enwright

Thanks, Eric.

Operator

to with Associates. CLK go We'll Marotta Instructions] [Operator Steve next &

Steve Marotta

to a GSP John that goes, Good tailwind the magnitude and tomorrow was term? other passed, that morning, be would headwinds? the John, wand, you you describe missed the as as in it the said if could there If of In it. far margin magic remarks, the gross in on Rob, what Julia. words, I prepared near gets

John Enwright

that pull be last passed. worth we year, duty about points Yes, if all of about if could retroactive point gets a the paid full to of it way margin would but we to the benefit. it's out, company Obviously, the X it back

Steve Marotta

really how or be missed Could the And year provided earnings also, partial and think guidance, it. you over you quarterly go any That's year? if will through the I helpful. you weighted sales

John Enwright

Yes.

of given not right any guidance the we quarterly volatility So the some now. provide world in did

with guidance ultimately, So sticking an number. annual we're

Steve Marotta

-- Would to take you on like a opportunity thoughts us your to give the little

John Enwright

Not time. at this

Steve Marotta

a and you lastly, else -- is a talk strengthening remarks the enough. marketing can in Okay. mentioned Fair pushing you door one at bit might could there be that about Rob, anything of be I about for fact levered opportunities Bradley. prepared do? given And believe, little that Vera I upside string it's from tested, that both standpoint? a Pura big others closed, you marketing but are teams, a bit a Can the are little that little has know that on being there direct-to-consumer like Vida Thanks. the

Rob Wallstrom

Steve. Thanks,

tools, Bradley, So been the that. only all, up we've but years, to the analytics. the clarify, really not to couple last marketing of first team, And from results the Vera the continued nice of processes, over see we building team, have with the

Pura plan really help is those. and is to to to let Vera practices a and of those our Now take at do Vida best what Bradley leverage learnings lot

at enhance what look additional bring was tools. focused ahead that on the there get talent tools, how that the do how have So, we really a leverage really advertising go marketing broader marketing I we media, would and how the social in totality, we and call first-party we in

building currently so well Vera of talent that lessons And Pura at from at process standpoint be lot learned a that a the the Bradley, we the we're as Bradley go standpoint. we kind Vera into strength of into going team as have more to leveraging assets Vida marketing we taking year, a both this and as really

other Vida critical believe now could things the we the in have as we Pura we through you've for story, that marketing we to business lift seeing due business that seen this not lot see to growth ways In of driving terms growth customer Vida, growth the in e-commerce acquisition three story that challenges of have the of with be continue think we as this marketing, will right a we but the at customer one of Pura is results, up stores. growth work there. strong San the if very, very and with the strong those a what's store the important but as up help also ramp Diego. we marketplace. Diego encouraged DTC more San in And year, become stores part which acquisition and We've that really only not results very open we've had store And the importance is move the forward. only of we very companies, and ability been very by results We're exciting the seen of four-wall what as first customer

for the additional definitely focus areas one and the brand. prime So acquisition to looking of that's at we're customer drive

Steve Marotta

Terrifically helpful. Thank you.

Rob Wallstrom

Steve. Thanks,

Operator

Wallstrom I the remarks. there's back closing further additional will time, Rob this At or to no questions. for call turn

Rob Wallstrom

Thank you.

We are committed cash to being company, a purpose-driven strong generating stable multi-lifestyle brand, flow. growth

balance out shareholders brands invest cash-generating time through and of over other our future accretive share flow two ability generate us free and seek brands, to dividends. purpose-driven has lifestyle repurchase in solid or to debt-free Our to positioned acquisitions continue cash to continued position, sheet cash returning capital

future fiscal a achieve solid goals. and the XXXX Although, its to and of fiscal our with challenges vision long-term be have company our we challenges, path clear inflationary for filled still XXXX had a

the is we stable about you Thank and are growth. balance team speaking We is Inc. sheet strong, our on first long-term to solid, focused, on opportunities earnings with you, our June brands remain for forward quarter call. Bradley, excited Our X Vera and for are our positioned we look

Operator

call. for participation. concludes This your Thank you today's

You disconnect. may now

Vera Bradley (VRA) 9 Mar 222022 Q4 Earnings call transcript