Vera Bradley, Inc. (NASDAQ:VRA) Q2 2020 Earnings Conference Call - Final Transcript

Sep 04, 2019 • 09:30 am ET

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Vera Bradley, Inc. (NASDAQ:VRA) Q2 2020 Earnings Conference Call - Final Transcript

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Q & A
Executive
Robert Wallstrom

activity? How do we take the targeted approach, whether it's by category or customer geography store? So we're becoming much more micro focused in our promotional activity which we think will help us move through this period of promotional activity.

Analyst
Oliver Chen

On Pura Vida, there is a huge opportunity to really leverage their digital expertise as well as your young customer base. What should we monitor in terms of how you'll embrace that across your organization at large?

Executive
Robert Wallstrom

Yeah. No, Oliver, you're definitely pointing to one of the areas where we think that there is real synergy. So our teams are working together to really learn from what Pura Vida has done. I'm really focusing on how do we improve the effectiveness, particularly with our younger customer and so a lot of what Pura Vida has done is really done a great job of engaging that youth customer which has always been such an important part of our brand. So if you think about what is the focus? I would say, there is really three key areas. One is on social media. They've done a great job this year of basically doubling their Instagram following and we think that there's a lot to learn from them on the social media side.

The second is moving our marketing into much more of a user-generated content/influencer generated content experience. So you're going to see more authenticity coming through our media over the next 12 months. And then, I think lastly and also importantly is, just looking at website and the different capabilities, with different tools they're using that they're being more forward and being on the Shopify platform, that they're taken advantage of a lot more of the innovation that's happening in the e-commerce world. And we're expecting to leverage a lot of those learnings, particularly as we move through our technology program and join them on the Shopify plus platform.

Analyst
Oliver Chen

Thank you. And lastly, regarding products, you made some great updates to some of your classic silhouettes. How is the customer response then? And what are your thoughts on balancing changes to your core versus layering in newness and managing risk as well as innovation?

Executive
Robert Wallstrom

Great question, Oliver. So a couple things. I think, one, we are continuing to see strength in our core and our really our hero products in terms of things like our campus backpacks and duffels and things that were traditionally known for. In one way that we're driving innovation through just those core items is using fabrication, so that we can keep those products even feeling fresh. But you're right that there definitely is this balance between bringing newness to the market as well as keeping our heritage going. And as we look at newness, we are trying new silhouettes, a great example of a big success was we brought in our sling backpack during the second quarter, which we had -- never had a sling in our line. It far exceeded our expectations and that really