Vera Bradley, Inc. (NASDAQ:VRA) Q2 2020 Earnings Conference Call - Final Transcript
Sep 04, 2019 • 09:30 am ET
Thank you. [Operator Instructions] And our first question, we'll hear from Mark Altschwager with Baird.
Great. Good morning. Thanks for taking my question. Rob, these collaborations have been really interesting. I'm curious, if you could talk a little bit more about what you've been learning so far. Specifically, is there anything particularly surprising with respect to the profile of the customer that you're attracting to the brand? And does she look like you're the core customer or do you think you're expanding the tent a bit?
Good morning, Mark. Thanks for the question. No, we are absolutely very excited by these collaborations. I think one thing that has been probably extra exciting is the fact that all of these collaborations, the results that we've seen across the various channel, whether it's Starbucks, whether it's through Gillette, Venus and Target, whether it's through Crocs, the consumer response has just been kind of overwhelming both in those channels as well as in our own channel. So we're -- it really, I think, just points to the vibrancy of the brand and how strong the brand is. We are also seeing as we look at the customer file, we are attracting a new customer to the brand. And you're really seeing it show up in our brand awareness, right? Our brand awareness -- our aided brand awareness scores keep going up year-after-year. And so we're really excited about what this means for the brand as we go forward.
Thank you. And then, a lot of these product and marketing initiatives have really been focused on the full-price business and you're clearly seeing some nice success there. Curious how the strategies are touching the factory business and what's giving you the confidence in the sustainability and growth in the factory channel?
Yeah, Mark. We definitely are focusing the collaborations on our full-price business, part of our strategy and Vision 20/20 was really to get strong growth for our full-price channel and kind of move from the strong clearance focus. So our collaborations are definitely focused on full price. But I do believe that as brand awareness goes up, the brand becomes stronger that, that also plays to demand in factory channel as customers are out shopping the factory channel. And we've been very pleased with how our factory stores have been performing in the first half of the year. We've taken a very focused approach in that channel, 95% of the product is made exclusively for it. Very focused on key items, key fabrications and really making sure that we're managing the promotional environment very tightly and that strategy is paying off for us right now in factory. And you're seeing us, as we're continuing to expand our top stores that we believe we still have more growth opportunity in factory.
Great. Thanks. And then switching gears for a moment to Pura Vida. It looks like the new outlook incorporates about $60 million to $65 million in revenue for the back half. I mean, that's