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

Sep 04, 2019 • 09:30 am ET

Previous

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

Share
Close

Loading Event

Loading Transcript

Q & A
Executive
Robert Wallstrom

reinforced our belief that our customers becoming more and more, what I call, silhouette focused and functional focused as opposed to just pattern focus. So I think that becomes really critical.

The other thing that you're seeing us do is, as we talked about November with our duffel franchise, bringing in the lay flat technology, it's a great way of really updating something that is so iconic for us. But I will tell you that this new lay flat design is great. I think our customers are absolutely going to be -- that I personally am a big fan and using it all the time. And the other one that we talked about is Performance Twill. And what's interesting with our Performance Twill launch, we put it out of market in August and then with the launch this week, we're focusing even more on the website, not only is it a great new fabrication, but we are really trying to balance both heritage items, which you're going to see, as well as new design. So, for example, in our Performance Twill, not only was our campus backpack, one of our best sellers, but the other thing was we designed to do work tote that we really listened and built some innovation in that the customer was asking for and that's been another surprise winner. So our customer wants us to balance both heritage and innovation.

Analyst
Oliver Chen

Thank you. Best regards.

Executive
Robert Wallstrom

Thanks, Oliver.

Operator
Operator

[Operator Instructions] Next, we will move to Steve Marotta with CL King & Associates.

Analyst
Steve Marotta

Good morning, Rob and John, as far as Pura Vida, Can you talk a little bit about...

Executive
Robert Wallstrom

Steve, we can't really hear you. Can you speak up more?

Analyst
Steve Marotta

Is it a little bit better?

Executive
Robert Wallstrom

That's little bit better.

Analyst
Steve Marotta

Maybe, this is better?

Executive
Robert Wallstrom

Much better, yes.

Analyst
Steve Marotta

All right. Can you talk a little bit about Pura Vida's accretion from an earnings standpoint in any sort of seasonality that's associated with that acquisition? In other words, it is adding $0.20 this year. Is there a first half loss that might be incorporated as we think about our next year numbers?

Executive
John Enwright

Steve, this is John. So did you say is there a first year with loss that we should think about? I just want to make sure I heard the question.

Analyst
Steve Marotta

First half.

Executive
John Enwright

So the answer to that question is no. Ultimately, they have some seasonality in their business. It's fairly similar to our seasonality where they do have a nice summer business close to kind of our back-to-school business, as well as a holiday season business. So as you pointed out, we expect accretion close to about $0.20 in the back half of this year, and as you kind of model it out for next year and we'll obviously more guidance in a few months in regards to what we expect for next year. But I wouldn't anticipate any kind of reduction in the first half the year from EPS obviously, which is going to be --