Vera Bradley (VRA) 1 Sep 212022 Q2 Earnings call transcript

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

welcome like morning for you us to for and Good Bradley’s earnings thank joining Vera call. everyone. We’d

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

second of to the joining me call. nearly us quarter of second nearly Thank back you fiscal today. was Vida revenue year-over-year X% quarter today’s XXXX for over consolidated comp also revenue everyone, fiscal XXXX. was Mark. XX%. basis posted Pura quarter on you morning Enwright, On a thank Bradley We pre-pandemic our up essentially Vera Good John and CFO joins level second and increase it’s

the sales revenues anniversarying fully products stores strong to mass of Vera improve product and quarter brand year. Bradley operational exceptionally related rebounded prior responded customers were despite from to Second as sales continued innovation, travel

two However, our negatively experienced factors major that impacted results. we

due Instagram update the Facebook Vida our platforms impact Apple XX.X as the sales, and First, drive engaged Pura had a it Instagram. on has iOS and to ranking primarily the category of The market-leading maintained negatively Pura on position, vehicles brand Instagram Facebook and advertising. have been number-one Vida to marketing primary the the revenues, consistently in affected jewelry effectiveness

to working is of to team build sales our platforms, diversify other volume DTC second quarter Vida balance diligently portion into the throughout of to momentum Our the began beginning the marketing of a see quickly and and consequently, third. resources Pura we the

Pura expect to a We Vida second half of year. revenues growth will XX% the in the return XX% to rate

in and of margin much pressure like put expenses on continued Vera increased gross freight supply tariff chain significantly quarter. Bradley Second, to meaningful experience the industry that challenges and the

lifestyle We ahead but beyond of the year, continue will a ahead our expect to well were we XXXX opportunities we expenses, we We term face balance year their pre-pandemic. SG&A for growth sheet both earnings we continue and brands term, categories. our With our last fiscal of moderate also of core and first XXXX manage fiscal continue strong. with headwinds that where were and know in the pressures well certain long to have to and year-to-date is the balance start uncertainties significant realize flow these product remain able diligently cash performance solid off to for quarter strong to our

multi a to high purpose company. are on vision lifestyle driven, our track be and We to remain brand growth committed

let the me call turn Now discuss over to financials. the John to

good Rob morning. and Thanks,

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

year were the in to temporary year affected prior quarter, second Consolidated non-GAAP numbers year store $XXX.X by net current detail numbers quarter. revenues well revenues an of press Prior release. related as of non-GAAP million as million store over GAAP reference adversely COVID-XX. excluded hours a increase the reconciliation XX.X% $XXX closings from second complete items totaled of for to the For today's and reduced the for please

were Although benefited mask substantially also they by sales.

revenues primarily flat, from $XX.X million in related X.X% current million, year fiscal share second quarter, in quarter in million sales, million in in second diluted mass the sales a of $XX.X comparable Current for indirect totaled for For totaled a and $XX.X product year. down to orders prior Since increase categories Vera reflecting were COVID-XX temporarily the year increase partially $XX.X million basis Bradley revenues pertinent. impacted $X.XX second million year’s prior Vera decrease stores Bradley X.X% in were second the nearly income net year. prior in net Bradley year is segment a of quarter, calculation just On $X.XX in sales or XX.X% offset consolidated specially totaled of year’s Vida’s $XX.X account segment per Vera second $XX.X rebound apples-to-apples XXXX. store quarter quarter. company an not a reduction the Pura to key direct by the segment million $XX.X totaled that Incorporated second closed year’s portion a or million share. over the orders by $X.X quarter prior prior diluted were negatively income the other revenues prior in X.X% comparable compared over the per the

we by year. margin this and negatively inbound net prior compared net costs profit gross to year current gross million or by impacted mind higher expense. consolidated in cotton $XX.X in replicated XX.X% expanded year. of XX.X% freight of or for the The not revenues was rate approximately masks, totaled $XX.X the our in revenues quarter million prior Keep of the sales was which outbound year-over-year points basis to year, Second that XXX

at In the the duty expired free reflects status beginning whose previously year. tarriffs status, countries addition, the duty source higher where products margin of rate free lower from duty GSP we

or will Consolidated of impacting compared per expense the status revenues this totaled net SG&A duty $XX.X retroactively quarter. current prior believe million been numerous tariffs for approximately the XX.X% times second As assessed has in is revenues past, net have average, to On of year. far happened us this in reinstated the $XX so the is we Congress this million XX.X% X million year. quarter, or year of negatively

expenses As reductions than the last expected, year year. to our to current prior were expense SG&A COVID-XX primarily higher year, due related

to income year. or totaled million quarter the X.X% million of revenues $XX.X Our of $XX.X net net XX% compared revenues second prior in consolidated operating or

me to difficult and performance is future talk forward uncertain, financial continues The environment retail Let predict. be about our outlook. to

based estimates business current for our consideration trends balance and could second quarter the macro XXXX economic year. gross industry company's on performance the that of our a We sales are updating margin performance, and impact and for certain of fiscal conditions

We see operating to our traffic expenses. control are volume increases and over continuing to year expect prior and levels

we looking However, times that manufacturing non-GAAP. in and supply headwinds, chain numbers guidance expense extended like including increases. substantial are retailers and all Keep inbound projected many delays, facing mind are forward transit outbound freight

not we quarterly directional While let quarter. commentary providing third are guidance, on me some the give

the high XX% We and expect single increase Pura by for Vera digits brand, Bradley revenues Vida. year-over-year over for to by

GSP and continued margin pressure supply incremental expect issue. a related gross well challenges as also freight chain ongoing expense as We to

GSP margin savings Congress. P&L third under flow forecasting will pressure fourth to until renewed through the be is but to We GSP continue the the in are by quarter quarter, the

XXXX, $XX expense expected increase XX.X% updated of supply in reinstatement expectation to challenges mass this $XX our net year, of $XX Bradley $XXX being compared shares weighted freight new average $XXX of totaled XXXX. to year, rate million follows: $X.XX compared we to investments million, compensation compared $XXX a to compared million XXXX. Consolidated to is in fiscal to $XX million $XX million of The million, diluted with $XXX and to factory fiscal $X enhancement. primarily XXXX, year. an in million gross year, higher to $X.XX opened margin Consolidated million the million to related to rate $X.X fiscal technology and logistic in substantial percentage of estimate. capital with the is current of to For abatement fiscal fiscal an revenues compared income associated XX.X% The penetration between Free prior sales annual to increase on $XX.X $XXX.X approximately tax for associated Cares year effective to costs. relates $XX in Consolidated million general The Consolidated million cash increases Diluted XXXX. in SG&A Consolidated XX%. have outstanding million Net decline with million and XXXX. profit and XX% million, Vera spending in $XX of $XXX as GSP of net based reflecting and included coupled locations ongoing million totaled last revenues gross fiscal EPS in approximately year. $X.XX and the chain expectations. million expected non-comparable to Act flow operating savings diluted in last retroactive stores of full variable EPS SG&A

Quarter fiscal and last balance at million We at end. Vida end the me prior million, totaled and $XX.X end. our no due cash at Cash, $XXX $XX equivalents end compared last let had the than inventory. investments to second and end Now of to million facility incremental million at primarily million Pura higher turn Total was on ABL of to year end $XXX.X the quarter quarter $XX.X quarter year. quarter, million $XX.X last a credit was to sheet. compared year’s inventory the inventory borrowings second quarter

approximately of Rob? should be inventory year-over-year expect We down end the fiscal by XXXX. X% by

Thanks John.

company our community by refining an addressing driving loyalty, wallet distribution movement only and the enhancing customers distribution our products collaborations and enhances fiscal marketplace. XXXX, brand existing category and deepens serve and but four, by brand extensions our customers our strategy focusing and our reminder in utilizing future product to customers. that our experiences new a digital through attract and Three, increase the building for changing four and share the positive As marketing one, growth evolving channels key lives opportunities impactful drivers our further digital Two, are: to of not our growth of retail with for first the consumer pipeline, digital innovation, evolving on customers. creating environment by

with begin Let's Bradley. Vera

indicated XXXX business last recovery robust, have Americans and that quarters sales products Research continuing looking at our been mentioned quarter, campus of plan the of and I second nearly forward of to the this alone we are were to the three indeed our of summer exceeding As end levels. quarter. segments of in travel travel travel

quarter. saw elements On although the return school accessory strong, at the been to for the to chain sales overall and Like throughout Vera levels.. faced in not disruptions campus levels. XXXX we over Bradley, exceed non the caused in did back not sales supply many pre Similarly pandemic did back growth we business delivery our other that XXXX, hand, has but market industry, delay

We assortment average have XX we launches. Unfortunately, improve each experienced the in of this full on in to for expect of goods delays product fall do not situation available a so before season. daysor our was

working expense increases We freight diligently the are shipping expect to continue near best situation but and future. to as we the delays mitigate can for

the not of only increase remain look coat, new gray red forward to innovation about this front, galaxy fabric offering solid will excited existing new new to launch of new to fall. development We solid Bradley. be are our On new we collection the and and recycled our very customers attract share seasonally, and with our product to offerings, continue which wallet customers, pipeline optimistic but the important cotton color purple Vera about to

our summer. We styles spring the will offer expand we black and will Navy in next

with bring launch customer to diverse the and of partnership a younger Cotton the help collection during brand. more the Lana Our Condor Reimagined

in to We're our to alternate exciting had XXX% continue more of options and other momentum twill ultralight our to and another and for exclusive bring collection. are We our more performance fabrics researching eco committed our by like we on innovating to quarter sustainable alternatives customers fabrications factory product We build the XXXX. friendly updating constantly collaborations.

outdoor and rugs June. covers, launched pillows, umbrellas Our lounge classic and accent in collection of seating covers furniture accessories

online the collection can In Depot. on select addition always this Lowe’s be then the purchased capture customer Bradley marketing being popular and through and continue Disney Wayfair, launched investments reflected In are mini made and classicaccessories.com marketing have the during as also in Amazon, efforts in off and data quarter. the our results. data science, analytics and substantial we available leading Vera we retailers such and to verabradley.com in the And past, Harry to data business area, pay stores, Home Potter collections

As expected, count to grow. customer our continue

stores. customers Our across the customer personalized and journey in level labs engaging centered and meaningfully messaging our activations new line customer are factory of full aiding reactivation customers in

driving influencer are continue we and storytelling, selling. and on investor user are social media, generated enhance expanded to have engagement social more have and We our employing social our programs, more content, specifically, grown specifically

We Gen grow Reimagined fueled to back-to-school are acquisition. collaborations. year-over-year drive continued our quality placements with over campaign expanding travel customer These continuing along and to XXX% awareness strengthen our Lana Z Condor, Tiktok with summer platform this engagement essentials with media media up by our to tactics our collections Cotton impressions brand

that our reflective of audience. diverse our proud are commitment a to inclusive are We increasingly marketing and efforts more

foundation of customers We school are organization. XXX,XXX support our go hungry. research otherwise of the for a the third the of the partnership contributed consecutive our over in across amplify the fundraising of events In date Center its Foundation University we donated nonprofit's cancer foundation mission. have begins Foundation breast To at who honored series Indiana over the elementary to for Bradley research. being to of to August, Backpack to this at support millions research groundbreaking million Vera Center Cares the School breast with to has Today, help the for providing cancer continually breast VB Vera we to might cancer in mission with And America food year Blessings Medicine children XX Indianapolis. the entered annual of Bradley conducted month

has our the average times omni higher Digital over over channel and business customer single want strategy. customer. retail than three Many channel shopping have in many revenue a presence, experiences. support missed are seeking customers typically omni Our in the have portion the we have become to digital spends to stores of experience. and continue markets customer where We time, are larger interactions more seamless our our a sales and person channel this shared

our in gained focus We that buy pick digital the full in stores online reinventing continue on have popularity and customer and enhancing curbside and during remained popular, shopping pickup. up experience pandemic selling certain to line the appointment perks like store

We to optimizing stores, the are focusing rationalizing existing potential fleet of and our portfolio on localizing closures. select profitability improve through by highest continuing full our and our servants our line

two would We full the to this total to XXXX. close line and up have stores more far expect closings which XX fiscal our since beginning year, three full closed bring this fiscal to so line year of

year to more and four end open stores so new of factory the opened far We have this two expect by October.

to fully across we in Vera During channels, for installments the all transaction pay units quarter, customers their gaining purchases Bradley implemented sales. allowing per afterpay higher and increased

also target year. thredUP is are now our on to excited exposure as have to great so Vera We And earlier of does continue this partnership which traction, which resale and marketplace, gain a Bradley our with sustainability plus for distribution brand. launched

the we have marketing revenue opening. XX% we into slowed switch due wholesale growth, iOS growth place second and a store to XX% let's new in our to driven quarter and Even year, initiatives put generate Now of launches we the business Pura second Vida. product temporarily the new the our though to for Pura Vida’s by the believe half positioned adjustments update, to are

One continues completed of Project Novus technology customer unified our platform at continues, service, Pura we our growth. enhancement company Pura ERP integration CRM, other positioned quarter the wide, future the accounting to our allowing enhanced Innovation Vida, Pura initiatives of This for has key for to Vida areas. during critical capabilities and was strategically sourcing in which among Vida growth. infrastructure data critical analytics be

to designs jewelry elements to new continually In addition collections. our and adding

also beyond jewelry. have We well diversified

of great lifestyle example of and a building of the our brand. the of Vida launch apparel April tees truly was extension Pura April hoodies. collection the are our lifestyle of A We

tight Vida graphics. Pura surf logos, been eyes and have styles top the far So

Pura July, is ranges, only backpacks broadening and our date. significant hack revenue jewelry and brand. fall. and tuned. Now that and Vida hats introduced the logos. during opportunity very will work popular we last going fans May brand. profile Disney accessories Disney have generated this Pura [Indiscernible] strong to but exciting equally We in licensing our not size the demographic. that hair styles of brought to influencers are we partnerships a a the pleased product lifestyle launch launch We Stay believe backpacks appeal theme age apparel We fun And the which this Vida with a In and forward. response Items with new our launch volume and quarter With like collaborations style few a and collection. launched affordable been we to broader to month love. are appeal fun new Disney our to on high other customers, to This collaborated collection customers existing we an driving with enthusiasts pack

last bank collection to we more Bailey star and appealing month without which introduced Just our is customer. Madison jewelry diverse influencer a

e-commerce Facebook the historically reach Pura since to our Vida mentioned we Apple recent and As drive various impacted to on relied update have earlier, sales. like revenues platforms potential customers Instagram

other Our diligently a and team and customer Tiktok, deeper our diversify portion marketing into YouTube. to of platforms has like resources worked to dive analytics podcasts

loyalty ways customers on focused engage lifestyle. looking result, we balance inception, Vida We're new its Pura sales and continually DTC generate throughout demonstrated a devotees second new and quarter and Pura customers third more to beginning see the engaging efficiency marketing our advertising. As and the the volume for our has new Vida building design began Since builds of Pura into to into the of Vida brand, paid creatively customers, more quarter. expertise and the to introducing drive inclusive

is store On product in the UTC a the in brand's influencer store plants. our Diego's From feedback start Pura The social know Vida with showcase to off distribution mall Pura love San Vida alone, mid count products is. receive innovations, is we allowing existing and and array great Westfield us August media events. invaluable to Vida a front, of our the opened full follower customer lifestyle and initial first new surpassing Pura how host

Pura another brand's the saw of Pura Vida’s power community to lines three expand our hours person beyond Vida there up opportunities concept The the for to feedback most of as enthusiasts, store. believe the have at lifestyle opening in of saw we locations. level We store are certainly by sales been the Pura expectations. to We experienced However, they response the from day. overwhelming other the and Vida

XX of Vida in has Pura shop rolled and full also thrilled bracelet all rolled Pura locations. the featuring items and jewelry Vera Bradley factory that assortment Vida out are charity line We a shops full locations line we Bradley in in full out been have program Vera

have been We very with results pleased thus the far.

partners. expectations Our wholesale over strong, Pura far be and continue this accounts as we remains wholesale XXX new which add as our new will distributor. dillards We've has department growth joining Nordstrom to Vida a exceeded added now so year, store

presentations, We and wholesalers. our with with growth experiencing categories existing continue we and product to expand store larger significantly are presence our in solid in retailers core

Our accounts and average continue digital first current frequent experienced to many strategy. have we as fiscal on our a larger in XXXX, orders strong drive wholesale than summary, In traffic. more have resurgence in placed

We engage and have focused made technology strategic shifts effectively digitally evolving enabled experience. digital allows customer shopping data with company into us seamless our investments to a customers to driven pivot enterprise us which to centric offer first a a and

driven our generated Second our over are half over excluding by over And from consolidated sales. quarter our are sales one fiscal total e-commerce factory stores sales grew now e-commerce. Over revenues of third XXXX. XX% e-commerce of

expanding other Reimagined introduction continuing to our commitment alternative alternate as our Cotton pipeline enhance Pura countless product in innovation accessories. at and well apparel, Bradley and as are extensions Vera Pura collaborations sustainability, launch into such jewelry of Vida and Vida’s and newness our categories of We the collaborations collections as category the fabrics, collection, by evidenced continual lifestyle the backpacks new to the and as excitement product

Vida and questions. through introducing engaging efforts. reach marketing. We demonstrated Pura up Vida customers, store. through devotees Vera our from shopping the base its and Pure distribution to expertise loyalty verabradley.com of has experience Instagram. thredUP media we customers we the and website Podcast. continually and new our TikTok building are first ever building analytics, will Cares lifestyle on and continues and partnering evolving redesign reinvent to our engage our now new channels, Vida call community Bradley for the Operator, And its grow open VB social into are with via to looking Pura ways to In customer to the to our opening

first Thank Instructions]. go you. [Operator Mark to we'll Altschwager And Baird. with

Thank you. taking and my Good Great. thanks for morning question.

apologize us I But XXXX? can QX if growth rates in Just the versus give sales it. to start Vera just out, color the missed Bradley you some John, e-commerce on I

Just top because the I remember, a second, my of off don't head.

for So, to if go you. get you question I'll to that next want information the

Okay.

detail season Sounds talk great. August. for We've about just back-to-school progressed on potential other season more to any With this the brands respect an year. how heard through elongated

if you're of indications And recovery categories? the the trajectory indications affecting any that Just wondering separately, that? of variant then delta seeing travel any is your in

I mark, take Yes, could that.

haven't the to back-to-school, last non-tech to first we've also terms of the just up elongated in seeing seems got expect of what categories. over we of which we're back-to-school rest growth the be in in kind these levels, from categories. in accessories be market the seen XXXX there'll think of that back a sure we And back-to-school for season. I year all But more again,

moved has throughout August. quarter. mean continuing we When improve that to delta interesting through got mid-July, what month-after-month kind And been of variant, Regarding stabilized you saw the quarter, as is traffic slow. to we've improvement we saw it's the I

softening there's we But consumer's So been still a think upward the trajectory. still the of overall, strong.

the still travel travel seeing a there. lot category, we're of out of happening terms In

travel a seen suppression major in haven't we yet. the category So

to solid we continue through we're that So travel move the category this be as we're year. watching hopeful closely. But it at point the still will

approximately about went there you in a last XX%. mass year, to XXXX e-commerce year channel. results it's down was that compare when forget compared about in to And question up swelling second it quarter, through to Mark, that your regarding its regards significant But And XX%. the last don't

Right.

the can you're years you that opportunities I see share of on increases some took a inflation think detail pressures price and couple AUR seeing. impacted to any you effectively company of ago And offset today offset Then Wondering some trends price raise the tariffs. AUC? these freight and in then you. general if Thank Okay. to

up. to regards are seeing AUR AUR we trends, In Yes. go

to So of having we are through take what some price internally definitely some kind with what categories increase we increases in price associated kind are talk chain. conversations price and regards those the seeing can should and we're increases to In pass to seeing internally benefit some we that. about product of we take if of the challenges supply

Yes.

we increases. want surgical doing price approach We just how So it. to make we that and we're anticipate sure

So, more information in following will come that the on quarters.

Thanks detail. I'll hop Make the back in Okay. for queue. sense. all the

Mark. Thanks,

with SCC go Beder We'll to next Eric Research

guys. morning, Good Sure.

Good morning.

Could you store what term, about base? thinking talk Vera longer Bradley let's terms we about should And in be the of first. that talk about

Yes.

growth channel. perspective, we opportunity some the store-based still doors think, to in have believe to still a we factory underperforming. that see from continue we And So, reduce opportunity of full-line are the

we're for Now, opportunities while definitely resizing opportunities we're the looking open new going at it, to looking think to we while doors up Vera Bradley. to reduce full-line -- at look

will doors, some doors kind be to for open ultimately we discrete locations. current some in shedding So, full-line up but opportunities of looking

of are know buybacks, you lot have that terms right utilization thoughts What of your I acquisitions, And the capital? in now. cash of a

Yes.

meetings some we're now, right too, activity and around Rob we're certain commented we've in on having having conversations conversations and and certainly regard that. focused taking M&A have to As I, --

repurchase we regards utilize a of our we open the capital. there share to But that's there's think possible. opportunity have cash as kind program And way would certainly primary with from where do we in best we talk So perspective. in an to the our board an use focus

thing still this right way if opportunity repurchases the spend remainder if that's million use about So -- our we have of the the determine to cash. for right to cash we share $XX in we in do that's think to year

the Good guys. Okay, luck in backup.

Eric. you, Thank

to Chen with Cowen. next Oliver go We'll

Thank Hi. Hi, John. hi you. Rob,

Hi, Oliver.

are terms risk changes you expected? forward they of will reasons are worse And challenge? platforms? think be issue. in worse other thoughts been an also not and there second industry too? unless were the little the Thank Regarding you. may not surprised expected, of you in that what risk it -- why happen but may a the was than industry-wide next surprised factors iOS, going that how do on its your in facing pursuit than or terms in on tariffs, IDFA I'm And fright Also of definitely I'm what you some what

not been on couple movement. the the the agreement. of D.C. I'll renewal, At handle and had Yes. freight initially within Rob beginning well we the year the Washington much to update second part that there of expected happen going in we regards the first half were I year hasn't to in the has the we the regards as question part of And just a There's had senate to There's of first we and In GSP than it worse why the that's the House in bills first as half with question. that happen tariffs will the kind the been to of think year had everything anticipated. have. ultimately expected

that by happened retroactive. believe get now. GSP will we passed and would have it we But So it see will be we ultimately thought

end we're going haven't And of I So going think assuming to going kind there's to get just some We at summer the ultimately by of a going a seen. nearing the be summer it lot were peak. here kind there. were through regards was challenge months relief everything we to just will into -- was happen hearing to we lot and of the different fourth issue freight -- thought of the expense, the In the beginning we quarter. challenges

of down. some our COVID seen in we've spikes So, which closed factories have

lead and the time Some longer in seen up LA challenge February. just challenges warehouses on we're deliveries there's And kind then Beach getting some challenging, getting moving outside our in delivery to dwell product ultimately Long means have port in then that the U.S. was factories And through actually we of of it other just in then port rail. is of closures times which to Asia which here time makes We've back where

expectation full compounded. of think be going challenge I abating going of at next see the now year -- into the the And the and all some challenges be could beginning that beginning that year. we And And think this So was at some our it it's second even year don't the year to it's some part at was so. quarter the the of all next of have a and to we year bait.

one standpoint, moved expense been an so higher of air expensive some product AUR alternative. is air product the very it to challenges moving and we've is from size it's think I And and of the via difficult, lower a and Oliver, our our volume have, with we

through we point. we're at why So a to How of We trying manage using do do boat. through did of the that anticipated. But really air. have not I What higher flow as that's to process. predominantly on through that work we do move been leave that expense this we we what anticipate we think as air complexity there's

what's Apple terms On in of going on there. piece the

Instagram. into Facebook. migrating platforms. is thing been TikTok. were one we're now first, always They they've They with dominant Vida their strong think marketing that the on seeing force on I They're became moving Pura good at

lean continue So migrating into to a continuing job starting They're diversify. evolve. nice and to other Youtube, they're doing to podcasts of areas to

we begin their steps able analytics, digital kind addition platform. pay begin SMS, Bradley some that some some momentum we base. digital stronger The in broader Google third we're do channels that early a to of SEO of to into marketing traditional help seeing think data over the as broader been it leverage is quarter. business want to the those that, start there's to email, for maximization, have leveraging we've Search, second And as opportunities channels even have is at a through to do move of And just quarter them to them, have advertising, the second and some off recovering as thing look forward learnings and we get to the marketing Vera

the open Pura stores, marketing, only you we'll as thing But add we open have more can we one that first party would continue we'll opportunity only more have the I information And from store to for as about have customer. we because Vida. to stores,

really That's Okay. helpful.

the could versus that on inventory those trends and you. you Bradley feeling are back-to-school inventory at Thank Vera a So brands, if the Pura seeing, holiday? both and And you us related Vida? positions, period to you're with brief how

Yes.

So, remember for Pura we're than last inventory perspective, from high-end ultimately, getting Vida If over And probably working production we had the be? probably we year, you through on is a would like is to inventory. of challenges actually some that, index it some in. higher that and we

Pura say, holiday. regards up have concerns Vida inventory don't for suffice holiday. set would Vera of where In able enough bit Bradley. well there. So it little And actually a kind growth have any is was for Not any is down sales to Vera to inventory They flattish I'd to I being Bradley's there. last from year.

different broken are places. in a few We

with at here And launches So airfreight. continue getting indicated, through airfreight we on need that we're as associated looking to be work as for we're, time. here Rob to product holiday,

that launches as to think amount here. to of have So time a be defined about holiday

overall, have the that certain sales. Bradley time But probably to ensure product to have ensure we here holiday the time. -- that of kind from on There's overall is on So, a here trying right from get okay. in we inventory we're just categories Vera inventory to order we perspective hit

versus about continue the levels And about it it more And Does be volatile? square thinking store foot generally? XXXX? sales traffic are longer per productivity term you indoor to how versus traffic Okay. what

Yes.

of aggregate. became ramping. both traffic fairly So, the variant seen a you August, kind we've saw think business. end consistent little bit perspective, near In quarters go it's it where been to we delta the as from in down factory in down line to full a July of more a the kind They about both kind slowing that. the two if slowed it prior and But first was of back over

where the been -- to for So, think at kind full be the from the the it hopefully down year, for I and think it at consistent this QX of I call yet of year. QX end would of same of generally as it's we speaking, from traffic part see levels fairly was be kind

get about to move kind of If the into square per people get back of that a kind hope would from that vaccination up evolve We at sales a the factory be as would a that square sales we hope and selling continue of of we a kind lines we're foot, per product to rates normalized as start, to more as we able XXXX. hope more level perspective as kind continues you to line comfortable. kind we be perspective, sales well. feel the same year next can generate think back of evolve what we as in to a And as And and back from that the will would we full of kind get of the foot. were productivity we level

you. full Thank that also expect of you What might the different on it than as price merchandise now and selling? margins a you seeing Thank And averaging retail in how you. lastly, are little trends, promotional And proceed terms holiday can environment. be environment? the that

were promotional So, brands. consistent intention from perspective, fairly last both year. in That from fairly we to stay are a where consistent is we our

So, margin your second maintain we I it we if were where be remember expect Oliver? kind last of think about part don't consistent of And with the you to question, fairly year. would

period and The you promotional environment as holiday well? might for plan how the

Yes.

adjustment I don't a So our from perspective brands. holiday any current plans significant from in either see

Pura from well-positioned Vida as perspective. I an said we're think our I inventory from

inventory to as we product. we how to new on about kind of sits. as of at less in to in new Bradley, of think As where Vera If we depending bring category we promotional bring look launches, kind need be

regards. much. you Okay. Thank very Best

Oliver. Thanks,

Thanks, Oliver.

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

effectively to workarounds? Instagram it Good long if take? back get would to Rob, Vida with on for morning, Rob so, John. and Facebook is that And possible how and Pura

clarity, for effective changes just once important. continuing as of Well, be Steve, all was. that It's as very not they're customers both. with platforms. continue targeting they just individual an as advertise the it on both to They're to They

the type of conversion on the of not return reach. kind same getting you're So advertising dollars, so the overall

and just the to it to refine marketing strong and stronger. with I we it's better that get Continuing to at have other But Instagram able we models. portfolio. with important think diversification Facebook the critically getting that marketing -- continue be And advertising the work we'll it. time, forms, the better So that. do teams on supplement to in It's so believe more

I see. And John, can you quantify airfreight in the half? the first half and second

I a versus we're of see work But the From in more the P&L get of year. the the the first through to year half half won't going perspective, that. dollar significant Yes. second dollars ultimately,

Thank everything Thank you. I'll offline. Fair enough. you. take else Okay.

Steve. Thanks,

Telsey go We'll next Telsey to Dana with Group.

Hi. Good morning, everyone.

think just to change Or you to platform something expected that looking show just its you As what about else markers iOS the improving? back levels with to are and that to to the transition have it you're never Apple for shift, the that get had do been?

there's couple of things, I think Dana.

we seeing we that it on What spent. we're all, not kind more platforms. of is of reach? cost those, on customer watching. important are what that What from is improvement I First heights we really And do When the the marketing the anticipate believe we're that. two those mean, metric some watching? becomes return that is watching of acquisition diversify the conversion of we're a ad kind the combination our of is back do spent, what What the advertising? we and to getting in

to But forward. have as to more move So diversification expect dominant it source will of marketing be the we continue Vida. for Pura we

and be optimal to that And Got with do you expect And a when want it. you're what you do diversification as achieve do it the to it? looking you percentage? for, see --

Right what far reduction be on by -- spent the so now, I of over already seen would been in still that's Facebook spent optimal quarter. Instagram our we've total in in what But working XX% a on reduction expect number. we think amount advertising we're the and

continue expect that how to the to the and watch platforms probably just And going with into other of quarter. And algorithms fourth it in new we how Instagram. as then, Facebook terms have effective We will move become we're effective are. would on

an we -- our XX% mean, don't have time target we as year so, probably Instagram would with I Facebook. yet. would we of And expect exact into under spent be get and with next But

the What are mentioned you Would lastly, Vera? learning then on just Vida you Pura it And it. that Shop&Shop, that? you're Is testing a bringing Vera in the Bradley go forward? customers different from Got that test. you and

in they're which when our charity the a stores necessarily doing Right current but has seeing well customer, our also our what program. stores Bradley up. in bracelet, we stores, even full bracelet -- the back doing our what that been combination now, sale. charity And engaging is an and in factory our up Vera most our the our incremental for picking is engaging in bracelet not What finding what as of we're as with coming did that stores of customers priced that product they're customers has is which we it, very in They're in. factory program, adding liquidation we're some we coming just In just successful did worked.

acquisition think customer say again, current it is So stores, good Bradley which a I a sign. a in much opportunity is wouldn't we new our just Vera that as builder wallet

it. you. Got Thank

Dana. Thanks

with we'll Cowen. go Chen And next Oliver

chain. another I Hi, about had supply again. question

you impression factories So the that those you're think or should closures, what as supplies you that look not you regions which chain does your supply on seeing Thanks. your longer do? now term, factory percentage terms effecting from that to what you an your And of most? in do regions? details change gives of on And

factories in right. to think what So, the regards of, we're and

So what Asia. our to are for opportunity country origin southeast think about looking we at is of other opportunities versus

looking into that. definitely we're So

warehouses, And on looked to different think change challenged significant take the to some if see don't some our get move were we'll but up. it the up and ports the if of it I and is and the will I a now. that. the as are yards well from still a at ports product our clean rail around We've delivery happening of here opportunities to in just Some and ability the of challenges, likely ports All move speed of right with even southeast wouldn't. see and that just would really we majority kind so come to from time products to here. vast freight associated kind the of Asia, still as what's

assessing a not really can material But lead. of some of if up see long for are origin we changes going country we to perspective. opportunities from That's in a that So fixed speed a the be factories. to kind

at have we'll perspective. to something look year strategic from a Next more

Some closed of Vietnam, were Indonesia. countries were the that

where Vietnam so, mid-teens And is we get a significant of portion of from a call kind you kind of our it product. perspective factory fairly

made in more being to was Indonesia. a facilities. production And has bigger our weeks. two closed it part closed our of kind just delivery five of challenging becoming for it And weeks to hit that couple a that's So dates. for up to

into Myanmar, As lot And for our weeks. Indonesia. that over will close one And to a of that countries a us. be out production again few is moving it the of we've was moved larger time probably of only

So more of the one was Vietnam. kind critical

flexible a at And that Vida I been Bradley thing Pura one think beginning while for to a across we've chain. is Vera do and able just to do have supply

we of shops for the the continue we're more continue significant out ahead That's flexible. adjustments into reason have be John the when over chain just think moving we had we be which that as So And as example, hit, moved says, we and there'll still years why we countries we to to that Indonesia. into other work. Myanmar, in production part supply

air details. those expensive which general Rob, freight, that what for suitable is Very as be for helpful. mode products about more why? would you framework your for think And Thanks and

Yes.

that the super those is of products all, First number time one factor sensitive. are

giving example has pattern product that holiday news or hate like view. late be of point The pattern. most of weeks our a good holiday the for selling give six could really is and holiday seasonless an season. a So be of something a We would to that more four condense

the little that's that And we're things seasonal, accelerating. hyper so But not some standpoint. are are of the take cases air a looking or sensitive important a launch have look products of that obviously initiative. we're in areas in something to more bring time towards up marketing those we if If really larger We if those it's But a even a might from some less cubic those space. at. via those that there's things there's fabrication

much. very great. Okay, Thank you

Oliver. Thanks,

questions no to I'd Rob there conference And any closing the over queue. time, back Wallstrom to for At further remarks. Mr. are the this in turn like

Thank you.

a We purpose-driven clear a high and outstanding loyal growth culture customers have be to multi-lifestyle vision team, an extraordinary and brand company.

and in Our strong seek powerful double-digit prior purpose-driven generate to revenue continue position, to brands growth and This time. cash free affordable Post $XX over we flow over capacity invest to comfortable year, two and fiscal and two sheet growth brands the generate over deliver million. balance flow income other years expect over debt-free free healthy to our prudent cash will both XXXX cash of us allow XXXX. out operating acquisitions of

resourcefulness, Vera like the have this We work and Pura we us I an all December and ahead interest navigate and you for for quarter the call you Vida while teams tenacity exciting Vera to future thank for and Inc. on time of challenging in our Xth. for Thank environment. as believe can Bradley join third your through so our We the stakeholders. extraordinary accomplish hope corporate create to opportunity value we would we have Bradley, continuing much to

conclude you today's Thank for that participation. conference. And your

now may disconnect. You