VRA - Earnings call transcript Q2 2023

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Operator

Good day and welcome to the Vera Bradley Second Quarter Fiscal 2023 Earnings Conference Call. Today's conference is being recorded. At this time, I would like to turn the conference over to Mr. Mark Dely, Chief Administrative Officer. Please go ahead sir.

Mark Dely

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

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

Rob Wallstrom

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

Vera while While sheet. free our logistics of share to costs. total million expectations. and $XXX.X experience solid X actions, maintaining million company's below Vida margin second innovation a debt and Pura cost pressures due reduction We both quarter were And at to modestly Bradley revenues repurchases, initiated balance of completed product gross we meaningful continue drove

direct nearly price base. the digits last in and flat channel fiscal up At bifurcation comparable see Vera of spending to were continuing our XXXX. are to year double to revenues customer full Bradley We

experience to rebound. Additionally, healthy continued year-over-year Vera Bradley indirect channel a our

in and However, inflationary the negatively gas Bradley spending especially prices higher stores. to Vera our traffic continue impact pressures factory

and traffic recent seen prices factory in easing, improvement we our revenues. gas are have as a However,

We the strengthen our core to and are taking brands enterprise. overall decisive actions

from which implementation We These to of inflationary have lower be fully contracts, the expenses, areas begun operational targeted cost services, million, behavior payroll. in income logistics expense help various including derived of pressures XXXX. marketing spending reductions realized reductions company, will offset being efficiencies, of costs, are savings information and expected across XX retail store Expense professional recessionary households. and are technology, and corporate cost fiscal

we innovate In freight addition, merchandising material brands and on to continuing we are core raw confident by remain continuing strategy to both brand, our our strategic evaluate offset cost. price and for our rising execute in At Bradley focus. lifestyle increases Vera build to and

Harry return to base. more long-term omni-channel the continuing assortments and category, our we be media true make e-commerce we Bradley are digital nearly are to Vera month. And optimize Disney levels, marketing business the to with but and campus fall marketing our a to digital this and media powerful by back from to to we and and Vida, take is ons is our escalating continue actions transformation adding growth. a maximizing brand social with this product that that Pura excited strategic evolving shift diversified with on expanding to footwear effectiveness model dependent next taking This e-commerce about collaborations back is revenues digital will like At clouds miles assortment Vida's which slip home enhancements, We to one in continuing are the and affected and one and travel pre-pandemic opportunities time, largely Pura happen Potter. franchise are cost. business

of role our and meantime, and customer single expanding target we we the are personalize exploring our so TV, and continuing platform more to third-party the connected marketing. complete ads methods Pura our other launching and to we customers out. are view reach bolstering impactful marketing work Vida presence, each optimizing Most micro e-commerce day with reliant customer data influencers, marketing In from And on on SMS TikTok aggressively effectively in day in growth sales. and can will a acquisition we marketing Pura new a customer and are of distribution that implementing is a growth to diversify one play diverse, importantly, a a build future Vida's comprehensive Stores marketing coherent, performance-based of better and priority our data to our become drive physical growth to to process as balance less continue number internal key innovative, effective Our analytics in online we program will in talent. channels. build platforms. be driving

opened we San in new expectations. new locations Diego's Mall, And Myrtle UTC the last Beach, store third are in Westfield quarter, South California. in Center we Irvine Vida beach opened both Broadway spectrum the in a Like During at a August, in Pura at location exceeding our opened year original Irvine, our location the Carolina.

We key driving our play the loyalty continue in will Stores to and omni-channel marketing and power platforms, new village they store a in driving in digital sales, a role in can Phoenix acquisition has San customer a open September. diversify spending. retail Tan presence fourth demonstrate at we the Metro as

look country differential business of opened. stores the more a continue relative double-digit our San future. the store to we e-commerce to that example, to Diego impact since the forward We in For and rest the in experience

key to Pura centered Hello Shark as through we year, Potter, building and collaborations return influencers front, XX Vida's to featuring themed silver marketing business and in Disney, of for demi-fine year into of World On transforming gold the events to program partnering are balance Week, like the And store the Look launch our customer the we even challenging. collection stones. is natural Vida Surf product to despite the business and store the Harry underway. for opportunity e-commerce openings, environment growth take excitement karat remain strength like the key and planning sterling engagement next into and Pura we the to plating, Lake, with and and Kitty new collections build are around continue expected macro time we offering

taking We that core to for but only our actions manage us future. not brands as this and to both successfully whole, position a critical the period, will strengthen through further are company

Our focused and balance cash teams strong. our are position and sheet remains

will have cycles through confident And we before. We managed challenging successfully period that as through business well. I this am manage

brands returning We will to both look forward growth. steady to

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

John Enwright

Thanks, Rob, good and morning.

million go tax components basis. non-GAAP of goodwill charges of totaling of and other as asset the as Vida saving of consulting severance Pura impairment total fees and few masks are Let spring the an to The initiatives, second are with certain quarter. $X.X goods. a a all discuss inventory of for outlined on the this today after me million for intangible the cost million, major numbers exclude of today's release over $XX.X associated will highlights well million XXXX fees I primarily and The and write-down of charges charges $XX.X write-down inventory and cancellation for the charges $X related related orders in

quarter. million, Vera million segment sales prior X.X% to direct million revenues as or numbers XX.X% Pura $X.X the year. quarter. second increase share, year. $X.X the $XX For a revenues Vida GAAP excluded share million Bradley last Comparable well second $XX press the totaled Consolidated $XX.X year Bradley $X.XX segment $XX.X reference a per $XXX revenues decrease XX.X% compared totaled in today's net million totaled diluted million last million, a indirect the a revenues $X.XX from $XXX.X non-GAAP segment or $XX.X XX.X% numbers, year year. to from please $XX.X of million in net a second Consolidated totaled per decrease in Vera details compared last diluted items non-GAAP complete from million, over income reconciliation release. of million declined quarter. prior to as totaled

costs or million $XX.X The or last by gross year. by last quarter $XX was Second freight rate XX.X% for outbound changes expense million $XX margin XX.X% and million compared compared mix offset partially deleverage current XX.X% quarter $XX.X higher to impacted Consolidated to price and SG&A year negatively year. inbound increases. totaled current or expense, XX% the million, overhead or channel totaled of

to prior of or volume X% due other variable year The the to to sales and company's Vera lower $X.X revenues due As expected, in lower in primarily related million, second Bradley's of initiatives. expenses were reduction than compared totaled expenses SG&A cost current X.X% prior reduction a income or quarter year, net million year. net operating consolidated $XX.X revenues

was Total Now the to $XXX.X million million balance end the let's $XXX last inventory year. to compared at of quarter and second quarter the turn sheet.

million periods. lower cash $XX.X selling million into at cash the inventory at $XX over the delays in ensure we this debt to sheet. year's free quarter have second position to the build remain navigate due end continue as in to adequate totaled last position the year inventory in transit inventory balance We for last $XX.X and supply going is and coverage equivalents chain and end the quarter. fall a compared we million of key holiday have $XX.X additional We investments year. cash of solid with of a reason million A Cash,

volatile approach and conservative continue this particularly to We take in challenging to will environment. cash, a

of $X.XX. shares the million approximately stock, an quarter, of During our we average million common price X repurchased X at representing

$XX authorization. $XX.X under remaining have We our million million repurchase

our fiscal to let's shift Now XXXX outlook.

there pressure will for macroeconomic additional margin. impact Bradley balance the and the challenging inflationary to channel take Vida and a the business Vera return on continue factory We gross it time other e-commerce and High continue expect continued to the of environment will Pura anticipate pressures to be prices gas growth. to will year

our I are fiscal a of the forward-looking year. that will As adjusted guidance balance result, All non-GAAP. have discuss we for the outlook numbers

$XXX revenues $XXX.X For to million fiscal of XXXX. consolidated million $XXX expect 'XX, we to fiscal compared million in net

consolidated XX.X% XX.X% gross from range compared our expect margin to XX.X% last to We year.

SG&A and and deleverage from increase more by expense million, $XXX price range year-over-year SG&A Consolidated million costs inbound should XXXX. The than due in variable-related expense outbound to cost from primarily $XXX.X and to expected initiatives million incremental being expect overhead freight last compared sales increases. year. on by $XXX offset is to and We decline to compensation related expected reduction reduction expenses is a expense, in marketing driven expense in other fiscal reduction

prior compared year. Net capital spending million million in Session Question-and-Answer should We $X.XX of Operator, questions. last now we $X.X $X.XX year. for open $X.XX to the compared approximately to total the consolidated million $XX will to call expect to EPS $X diluted

Operator

Instructions] we'll Cowen question [Operator go our Chen Please and Oliver Company. take first ahead. with And from

Oliver Chen

speak and mean some Good going cancellations. you what Could why the forward? the for with the and having downs and coverage that time write-downs was taking Rob write Hi, of right have inventories John. it also in the terms morning. to status You you’re the

Thank not. you. ones things that are inventory the the but of some understand So some composition like sounds working, are it clearly because

Rob Wallstrom

question. Yes, further good more categories. to it was Oliver, certain The write-downs specific

looked the that to inventory as With inventory, consumer well our had pandemic. sell-through. So mask a we work And we built had changes seeing inventory. to just some we that of not through at really mask the on based -- the as from we're selling CDC as behavior, continue expected

of was was So the mask the with both that and inventory. vast associated majority brands write-down

look accessories. you iPhone older remainder, of we to think at tech the not of also If accessories was that and on really models. the people associated have are But sell-through with as moved ultimately, it seeing as newer kind

the than inventories, by it time. the point in -- as been And we're should ensure transit benefit. second and write-down are It's and in been last the little we to we is year, half the as last at where year. just this really the product challenged to holiday the we've being expenses freight less about season incremental quarter, it's a the of place is benefit see why we year expense the higher So exacerbated the write-down burden the year. inventory. seen Obviously, the bit this back increase was last were how seeing really year half of two that really appropriate growth freight as took that, well driven XXX%, by first things. was that in have driven the this for we has was given freight versus year-over-year from Year-over-year inventory, In we of some basis year

Oliver Chen

and is to the expected the and volatility already in comps portion what you're plans? the negative than seeing, being stores XX.X, did close Okay, what what's you of traffic guidance that in for more and down happened in or your biggest your implied terms of

Rob Wallstrom

to going we So we're stores number -- this the anticipated. ultimately, year, close of we're about close about that

and business, driven, the that the really in As we the price year. from is regards through better saw for the verabradley.com. that's first full expected in half stores, that being line the to the performance we're next of still off outlet continue that look we year, channels working to half means business, business what on they're full trend we're And are of or back next the seeing comps the in the year. business. in In comps, We're assuming that taking whether in price those similar our

Oliver Chen

the large the and on Pura issue within for now? a happening side, state has of been what's industry at digital the digital And Okay. What's marketing the marketing around Vida apparent while, path the are that more have do it to and that be ahead hurdles for improve What sustainably things time? it over need key growing business? and the more to structurally you

Rob Wallstrom

in us what as lack Pura bringing definitely Facebook also starting of platform outside better in the a to party Instagram, One, our in and and first CDP well reliance the Oliver, direct talent move I alternatives. from other term few for into both feeling that more on our at impact of at they're Everybody's those marketing, for to Pura this meta Vida platforms push are platform marketing, looking and building supplementing a market. up we've terms as think Vida, right, think I been consumer things. teams you're the called

this So connected quarter words, in TV up. in they're other launching here program, coming

as encouraging So Diego this if ways at other But of such in doing diversification to see, is part to been similar Pura the looking to the marketing continue relative a the part San has only that direct into be in that the seen we've other it's which and seeing see in fix we seen San long-term, of stabilizing play improvement behavior months a signs believe to and we're that. weeks that companies the and you've consumer also significant that market if challenge the the and important we go-forward. Diego new stores. Vida with themselves think going we what will early locations, that omni-channel been very other business we stores in We're

Oliver Chen

there? from on worse. And inflation what's thoughts price increases. you merchandise margins, increases you've the the your going Okay. It are been about update the forward? get to embedded merchandise increases, thinking sounds to also able margins, you of Could price some gotten what has like price Yet COGS us relative on environment and

Rob Wallstrom

associated And costs. we're just that the we're improvement price from increases actually on some being So cost the with seeing we're a benefit year-over-year, back logistics merchandise inflationary We're from some are margin thinking potentially really that here, macro perspective, seeing, seeing of benefit and pressures we're up see challenge accepted. actually and logistics economy. seeing is we'll into given the next the year,

still or But into some would year. next i.e. that those time of as of some some some in expect a the we are increase raw events So back to a with was given the associated see benefit strong costs, significant last happening, generally macro into speaking not challenges don't from the it product from worldwide and anticipate into is costs inflationary the our freight regards as we're through In how this to year. perspective, next of costs, material that. working half year, we economy

are whether this look We sense to into And the we whether -- that look continue -- still [indiscernible] not next it year. through push to and to of we'll or assessing as continue makes year do prices.

John Enwright

we're took and beginning what broad brands through of doing Oliver, increases half the increase, pretty kind across that both price first price of the a from year working though, think I is in been we year. the

micro it's going at look as be we those think increases. more on adjustments going price to I forward,

we we've a can not resistance see some lot cases, the consumers there's of accepted, begin think already few that of the to We in in much kind items. across So as a but board.

much we So going as more the go to it's to next adjustment be a detailed in months. prices XX

Oliver Chen

helpful. very Okay,

Your of and that. you're sheet know we source of balance in use capital the down what flow of the XQ, On about million, source terms surely and worried cash XQ? do went to balance, be -- $XX.X cash balance or about cash working

Rob Wallstrom

think performance Yes, the the as we usage of to year, obviously, more as cash repurchases. our increasing an both the in year, associated on on half cash half in all the utilization we well but contingent year currently of those share back grow kind everything's as inventory perspective, the as and cash with of that's I money looking cash from end first the of We'd uses say be expect to conservative like we the on contingent our year. we spent forecast, of of performance. by cash. balance our half of of about would in back some the at And

Oliver Chen

trend Okay, guidance companies but down a the positives, bifurcation early. Rob still out. then of just you has even certainly this And on the power. call plenty volatility have We retail the you spending with are consumer? have What the negatives you? seeing of concern Does continued and consumer, now consumer taking lot and

Rob Wallstrom

Yes, a I points. couple think of

is think spending we're biggest factory out go not total much seeing behavior, generate impact. story the even gas just traffic to honest, that for factory just ability there one, the perfectly us of stores, the be seeing from the we're will a the that on so to spending, prices discretionary channel, impact the I but what

concern. biggest our that's So

we're is So number themselves impact one in prices the seeing. of gas

little bit, the see relative to revenue we stores So gas it's we to beginning on to started and moderate prices line. been come began good And as trend. saw to that a rebound factory through traffic

be it could situation about August, we're know And of about consumer. haven't happening gas been been continues it's that's rebounding back of are the us think be happening So But to further we interesting to that July I of piece and the an all kind the as thinking I price what's and that moderate watching seen hoping Overall, overall moderating. gas and consumer. that going half deterioration. and a with price lot been is what's in we think helpful.

where any seeing hopeful robust we not back through be It's similar not today, further So, the move as half. consumer we to by in see we're is year, the which we'll we're that But what we means. the deterioration, see good.

Oliver Chen

love And a both be key the on talk you priorities. Vida if initiatives, we Vera that about Pura could Okay. focused just just few and should product briefly I'd

is lot a innovative Vida and done the Pura brand focused. You've mission of partnerships definitely

Rob Wallstrom

about a I Well, there's the I think assortment, look of think couple you product if at we different think, innovation. the product things, a one, ways couple

licensing that's very both not been across that's a driving from acquisition. successful been and some revenue standpoint, in in but So brands, customer impactful, only very really excitement,

So those the are to really efficiency in, important new makes and marketing programs bring customers stronger. it

that just continue So see for there. stay announcements exciting new And partnerships we look more we'll we those move for to to exciting forward. keep them continue and as tuned

lot in get product you innovation. of specifics Bradley, terms If to a Vera do categories across they into brands, two of at continue the

innovation also We have but only not seen a things, that our through, newness. core coming we've

us is like that. very, us. looking consumer at they've very which still engaged going launch a young, a has to in the then So up, seeing of if at. Vera really old well customer pop higher has helped year of both launch point, is is which rebounded, positive response we're kind We're quality to business reengage kind kind of Bradley you're the the deeper of the footwear watch we're that Vida, teenage as initial there this been old to has see. this and as to as same customer, XX At core to historically One, and for beta magic collection, two which a price bracelet the time, a things be there's just higher part And take business, going is launched been an particularly customer. year XX into encouraging that the Pura as fall kind and demi-fine of that travels important that XX back to very XX

be I the say So watching. areas that important the those to are most are would

John Enwright

seeing the to apparel thing the they touch the that, much you stores, consumer and them apparel online. if the quality Rob, than of business, we're more think when only product to broadly would gets add engage the with Vida, feel do the about I they're the Pura that business, when opportunity Yes, in

So there'll opportunity an as we that category. open up for be more stores,

Rob Wallstrom

Yes.

Oliver Chen

Thanks. biggest $XX.X market a $X.X million valuation just the Vida valuation that on about million [indiscernible], charge. one of to million impairment the was provide And charges, from was perspective? store the that or more what you a the $X.X little What Okay. could underlying And governing impairment? details that Pura related then store

Rob Wallstrom

Sure.

if annual cash look you name goodwill majority purchase. Vida Pura associated on impairment, and that trade of basis, at flows. So we that about after impairment is do really a we impairment test with we the a future an or the think And made

it's brand to we Given the the flows kind brand asset flows, to expected the those individual of -- the trade that cash those current current cash performance same cash expected on of to goodwill the to really store at near-term needed those performance thing. the of In compared and at looked We write-down flows and name. based assets. just some expected we the future that on regards looked write-off stores impairments, the we the based value of stores of and for had

Oliver Chen

incremental And are perspective, has Rob, do the as factors regulation key concerned this and we regulation monitoring? accounting the done that true back, review think risk Should a what process about I that statement. you're you you to mean, I be is write-offs? get said be

Rob Wallstrom

question, goodwill I'll the yes, have review answer So right? So balance. just we first the to regularly

basis. quarterly we'll a do that So on

an review, which second on do a we As test an quarter. in annual basis, done actual the is

then think on we what think So talk Oliver, of I question, the put the are second expectations do I'll opportunities, forward because we'll we both part say would write-down. that Based and shouldn't your risks we important. is see perform I to business, if another we've continue to what the review expectations for and And and about really our it.

year, number taking go backed a as one $X in If [indiscernible] say standpoint, of So the risk we $X, the risk at point $X, gas is a we're $X, gas. I'd back factor gallon suppress this from by half factory the rebounds it channel. the that brand, will Bradley, at Vera

would say we've risk. think was business, far same impact, the it's ability a this big to its get and platform is So asset of marketing digital recovery, what just got Vida, the the the manage the matter largest how by and I to digital was I marketing marketing for gas reset. having At Pura

getting about So because on impacts risk at think the Vida that up, is impacted you that reset there's what's biggest Pura think I important it's three talk But opportunity, think business. going and that macro in to about it's you if us. the back the company, I big

one to that logistics flowing peak what from So cost, is our seeing, the probably inbound to the logistics what to logistics beginning moderate. now, consider the costs international particularly we're are right would cost, shipping, P&L see we we're begin or

be help tailwind us. move that hopefully will And we and can a as so forward

able that's as year, the we actually that through contracts we're to see. capitalized particularly, through redo as be are the balance as positive improvement to a that's as see encouraging. a is So move year that sheet I of will think you'll encouraging year, the costs we next able into on next definitely end get the that to we logistics move working which the profit

of So and is macros will better. duty the one get that logistics

news. good that's So

third more moderate, have Vida. we is one this so that as gas real stores really second to hoping been that will as marketing just that in we this with we're see And impact which big prices factory then be The the us. think been will help Pura one performance price a lift. has And gas

gas get that think media shift and that -- are the all we that investing this digital we our overall big big But data things rebuilding of industry. of business, in organization, lift. terms that now I the the As that's another work three the we're exposed that and marketing in the of just I were affected platform, ones performance macro think logistics, terms we're in

I So year. move we're working them, them, better as get next through will we're but into and think it working through we

Oliver Chen

last Okay, and question.

inventory performance. composition? you sounds the a inventory as highlighting the issue of the with marketing regarding the of do Which that Thanks are on terms Was parts And highlights proactive. digital Vera there? an and it brand of did the that Bradley one, So -- second, lot. in you cancellation,

Rob Wallstrom

John, of [indiscernible]? can the do to take you I inventory want the speakers] so about [multiple talk some additional

John Enwright

could just hear question repeat Yes, actually if Oliver. you your specific the inventory? didn't on question, I

Oliver Chen

parts of We did the [indiscernible]. the terms inventory John, need, inventory cancelled? of be which to calculations, ones needed which in you

John Enwright

So we orders made honestly. quite all that in future at categories, looked

at we expected forward year and into And a kind we in of to expected next we looked looked So was there fit the where of we on offset liability to felt sales that -- the at inventory new -- basis were obviously, could come inventory. in opportunities year-over-year. where kind expectations. we And some we we with the on based sales growing where of

orders, a it really. specific wasn't So cancel some specific to particular category. was It to opportunistic to ability

Rob Wallstrom

you happening channel, if prices thing about Yes, as would been just businesses up, gone in our think to add factory Oliver, what's I right think I the that, gas only slowed.

cancellation. So back drivers probably of line in getting inventory one is primary of that that the

is moderate into went it's it inventory about gave next demand. it we as, really, just not the that's to So working, don't an And opportunity kind that as of items category think not a oh not just overall well, us year. risk working,

Rob Wallstrom

channel So versus A think It's specific think yes, I way it's more about.. categories. good to

second -- Vera what digital I Bradley Oliver, think about your marketing. and question, was

so there's different And two aspects. think I

learn not base. over mitigate the base. they've acquisition. few great And difference beginning more against our a third-party last some We're years by Bradley Bradley performance But from. of experienced the analytical effective we dependent so known communicate one They is the our at the learnings of first very total that impactful they've Vera customer with for in Pura refocusing, bit implemented is to party at they customers, as more say? but not to rebalancing, And and Pura lot do to in marketing for able tools out business then it same leverage couple marketing have doing them marketing been toolbox, what it's at been already back to it's the all, to the the shall we're been have strong of use directly. Bradley, they has in Vera Vida biggest able challenges, upon as we've assets to building more highly First a what taking detailed are of team -- those cost Vera a the here finding little not the control as a workarounds, marketing. third-party haven't is at We we some We that our of we -- Vida.

Oliver Chen

Okay. regards. Thanks for answering all my questions. Best

Rob Wallstrom

Thank you, Oliver.

Operator

from ahead. take Gomes we'll Noble next, Please Capital. questions with Joe Up right. All go

Joe Gomes

morning. Good

Rob Wallstrom

Good morning, Joe.

Joe Gomes

talking So Pura what about you the additional new September, plan of a stores, you the basis kind of game go-forward openings open, positive of Vida? think, in Phoenix got us on we Pura store you in see opening the you’re Can I to impact in of one mentioned. give one Vida

Rob Wallstrom

that can jump I Joe, Yes, into one.

So first in of store that's opening. all, San the new have we Tan do

We anniversary our are in now store San Diego. in UTC

start the there's It'll going brand evaluate, this new going stand our but stores performance say And estate fall, really that obviously all So the would opportunity we how we're watching kind once significant strategy, inform comp are to real of for Pura believe I Vida stores standpoint. in do forward. from performing. a -- I comp go-forward

Joe Gomes

second which what previously. then the to is higher initiatives, $XX the of Wondering, I Because did some expect you impact reduction did in talked you cost how get first second of call talked And you of think the at of in flow high-end quarter? how about And Okay. you much see end? to million through in kind the did about the that quarter. you quarter mentioned, two, the that

Rob Wallstrom

see the with a saw second through And the because the into finalized will we quarter areas plans kind million. associated the on quarter. in year. built bit -- basis, a together was really weren't regardless we to and next obviously, with so of savings ended look guidance But we the given performance, that opportunities current opportunity really the performance little looked call we is we in could the of the back part the work we second we'd make it in felt middle based see at to our high-end down. if benefit, all we at Yes, which we some flow teams quarterly $XX on slim at on year, How that all business where into just up be of really the and where we of expect half

was a and amongst so to corporate collective really effort with team come brands the both up And it that value.

Joe Gomes

just to the we one M&A of the had given growth existing the of here. take growth growth going And forward the in I part of backseat Okay. kind kind getting that see of been the the strategy, things talked M&A Do still brands? a on past, about of that you transition or and guess, is is working to as plan two and going part the strategy, being

Rob Wallstrom

question, Joe. great It's

getting focused turned on The The around. team's say overall, get Pura that highly first is, activity. marketing board's Vera brand the is two in core very focusing, one [indiscernible] improve to accomplished good the is and we things number really we what think we need Bradley, on focus that a macro think getting environment before pretty I the But M&A we need strong. brands those to Vida, two there. performance shall see get place. the working really

going version CEO I and the on I focus But any play we think new XX we get Board is M&A next a over of through will primary role the does open I move as And be the that transition, always activity we're think kind M&A what that think months. align the the to shareholder of as forward. don't to return.

Joe Gomes

questions. in get the I'll taking for queue. Thanks great. back Okay,

a ask question. else someone Let

Rob Wallstrom

Joe. Thanks,

Operator

All right. with ahead. SCC come Eric And Beder Please from our go next question Research. will

Eric Beder

morning. Good

Rob Wallstrom

morning. Good

John Enwright

morning. Good

Eric Beder

I follow-up savings. next How be that year? What in of? know can in thinking should about the you And thinking million to is do some in incremental about going that? on is how much much flow this I the simply to terms back of Actually of want we of Yes, the half? that be $XX be a mentioned,

Rob Wallstrom

of next that. much year? your might associated be versus think I Yes, too this kind XX% there's of opportunity, so timing we the looking it kind probably at you with And think call year, if about of the an There year run this is, rate question how to the opportunity are total. achieve but full more we're cheap, going

Eric Beder

Okay.

-- look how How terms there going as you Harry fresh pricings, gone Potter of forward? X time you've of what years in So if almost the through keep be? come you a had some taken up. do long I It's they its that? And piece. collaborations from them Are at should how have away

Rob Wallstrom

converting success couple Vera of encouraging are bringing a collaborations brand, them Pura great across brand. is, into a first and and in been There Bradley our things way Vida. customers which bring in the that learned they the we've new customers into very from has We've of all, to had both are

that an it So definitely plays we important think role.

that important for to pipeline and of ways it to is and licensing fresh new things. seen doing that find the keep have We right continue opportunities, look

quite licensing, whenever one more often we and launch, are the the first then other largest ones is the So a new follow-up. introduce

Christmas, we in follow-up to for seen a I So I think that to and fresh to Like And impactful. both highly be Vida. Vera of do new Pura brands, type look collab And that same opportunities. the last think right? you're have you've when continue we the and Bradley, plays at But role. thing that fresh, peanuts new seeing continue us did was the

we keep move think to pipeline forward. that I we have as fresh So

John Enwright

the it, execution add think to of product. think I I just it's on

time in So I at in the And the and second the just and how … seeing kind release. in release that really first success of evolves think over release, a Pura saw Potter, we're Vida, to product success than to we second probably of better we're bit Harry speaks good little the

Rob Wallstrom

product did out. put execution that [Indiscernible] they Harry end because video marketing some encouraging for was what is Potter,

of I and it's product both so marketing. combination a think the And

Eric Beder

Bradley. [Indiscernible] Okay.

-- are -- you and be have have about So gone about decline? so should oil want these you about XX these how continued got what those prices term off, to thinking know thinking that? or What would [indiscernible] where to I the these price of XX for be full or be we chain? that's longer you the so, pieces

Rob Wallstrom

what we'll number just some a full the the that a factory opportunity we've price fair think year we doors, for be channel years the up Bradley all think But looking in how little But that. but we -- if the opportunities, don't would and close how opportunities for there's see close down. for opened Ultimately, typically and price what stores. think after know our will because year for to number can there's continue continue organization to can still value, increase that six I from that's teams next Yes, in that Vera to come year, I And be we we're other looking at we'll past through opportunity full few and opening but are we bit I to the what at still better. next working still going into if some years, think we'll and we perspective, to a we're not speak where that. still consumer

Eric Beder

outside tried did keep Okay. the guess And for some Because you -- And the the that? forward? of expand outlet something quarter, last know going the website. was sales flash outlets. you What online online guys in that to to going I to to continue response on sales is the that's the I

John Enwright

kind previously. had it and call had It's been years up for to we've and we and -- expect So we we we through sale has about have percentage had inventory, I up month. that flash factory as a it's higher of it our It continue years, year. And call more that it. inventory on product your outlet we work I online doing what this -- question historically values basis, that's outlet a a have we more, of X monthly work through had every or have been X we the think product to would factory product maybe as

Rob Wallstrom

is that the no, focus. what Yes, definitely I think everything John said

you have does, for a online the as had what outlet we've us said, it John is mind it's in keep now helped and I to that, really liquidate. years few think

So more building, factory a If factory were in what in is we we're adjust inventory would there. different seeing because prolonged, situation more we is that we're putting it. were

liquidation we'll as as primary used have point, primary very efficient But for a we at it's to liquidation channel, executed growth a a just us. continue channel. don't we So do channel we this not that -- we've that. -- And

Eric Beder

All right, Okay. the back Good luck of the guys. for half year.

Rob Wallstrom

Eric. Thanks,

John Enwright

Eric. Thanks,

Operator

have questions time. we And End this turn of for remarks. to right. I'll Rob Q&A no additional All closing Wallstrom call the back at

Rob Wallstrom

wanted the Before brief we close, CEO to search. give update on a you I

expected XXXX. remain and committee a search are is beginning I the of national know, plans my my in you by Board recently role As plan the until formed has announced is retirement, to CEO is search my which The successor but a underway. named

focus the sustainable CEO sheet Board iconic Board they brands in having The a over we'll and talented the CEO long-term. searches position the two team. and responsibility find its loyal very desirable a seriously balance leadership a next basis, the continue As for consistent with growth to and customer takes of solid our are building on right dedicated the

will for a as enterprise this take year. further know we decisive brands into actions remainder preparing the our next whole. time the remain are environment year it taking We of that We and challenging and will are through macro to strengthen but both core

you But company brands, to a been confident cultures. return loyalty I'm headwinds two we have earnings third Thank economic driven our quarter foundation have we begin you the in resend. and today the challenges unique that with will to look the to as macro customer speaking pressures growth our and December solid us strong forward on environment. largely X call. Our cost joining for by with amazing on

Operator

you call. today's concludes again this And We for participation. your thank

now may disconnect. You

Vera Bradley (VRA) 31 Aug 222023 Q2 Earnings call transcript