Vera Bradley, Inc. · NASDAQ:VRA
Vera Bradley — 13th Annual ICR Xchange Conference (January 2011)
24 slides from Vera Bradley's conference presentation, Jan 12, 2011
Slide 1: [GRAPHIC]
[GRAPHIC]
Slide 2: Legal Disclosures
LEGAL DISCLOSURES This presentation contains forward-looking statements. These statements include statements about the plans, strategies and prospects of Vera Bradley, Inc. (the “Company”) and involve known and unknown risks that are difficult to predict. Therefore, the Company’s actual results, per
Slide 3: Commercial video clip
[COMMERCIAL VIDEO CLIP]
Slide 4: Key investment highlights
Key investment highlights Iconic, authentic LIFESTYLE BRAND TYL founded in 1982 Dynamic, MULTI-CHANNEL distribution model Exceptionally loyal, DIVERSE CONSUMER FOLLOWING High quality PORTFOLIO OF PRODUCTS that are distinctly Vera Bradley Multiple GR OWTH OPPORTUNITIES PROVEN TRACK RECORD of performa
Slide 5: Lifestyle brand: authentic lifestyle
LIFESTYLE BRAND authentic lifestyle Founded by Two Visionary Women Our Guiding Principle Build relationships by exceeding expectations through colorful designs and meaningful experiences
Slide 6: Lifestyle brand: foundation for growth
LIFESTYLE BRAND Foundation for growth Vera Bradley Foundation for Breast Cancer created 2006 2010 Launched e-commerce business Opened design office & showroom in NYC Company founded in Fort Wayne, IN Visual Merchandising program introduced Expanded product offering Opened new warehouse & distributio
Slide 7: Dynamic multi-channel distribution model
MUILTI-CHANNEL Dynamic Multi-Channel Distribution model Provides access to broad range of consumers Allows for differentiated merchandising Multiple opportunities to shop Brand enhancing Indirect: 3,300 accounts Passionate independent partners Well-established and healthy Retail: 39 stores today Str
Slide 8: Diverse consumer following
DIVERSE CONSUMER FOLLOWING Universal Appeal Multi-generational appeal Different life stages Multiple occasions
Slide 9: Portfolio of products: our strength in design
PORTFOLIO OF PRODUCTS our strength in design Legacy Depth of expertise Portfolio design approach Collaborative/research based
Slide 10: Portfolio of products: frequency of release
PORTFOLIO OF PRODUCTS frequency of RELEASE Continual stream of new product releases Portfolio approach Consistently leverage Signature platform RELEASE JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC Signature Collection Special Collections Paper & Gift
Slide 11: Portfolio of products: breadth and accessibility
PORTFOLIO OF PRODUCTS product Breadth & accessibility VIBRANT, STYLISH PRODUCTS Accessories $15 to $35 (32% of FY10 net revenues) Handbags $25 to $125 (52% of FY10 net revenues) Travel & Leisure $15 to $130 (11% of FY10 net revenues) Excludes merchandising, freight, promotional products and licensin
Slide 12: Growth opportunities
Growth opportunities Expand product offerings Expand in underpenetrated markets Grow Indirect channel Grow Direct channel Open new retail stores
Slide 13: Expand and enhance our product offering
Growth opportunities Expand and enhance Our Product offering Potential for Brand and Line Extensions over the next 3-5 years Enhances product portfolio other brand extensions Rolling Luggage Paper Core Products Microfiber & Nylon Canvas other line extensions Future Product Line/Category BRAND EXTENS
Slide 14: Expand in underpenetrated markets
GROWTH OPPORTUNITIES EXPAND IN UNDERPENETRATED MARKETS Vera Bradley Retail Store FY10 Consolidated Sales in Retail $ $15M+ $5M – $15M <$5M
Slide 15: Growing the indirect channel
GROWTH OPPORTUNITIES Growing the Indirect channel Geographic expansion Development of new channels Development of independent retailer productivity Leverage field team Educational and collaborative opportunities
Slide 16: Growing the direct channel
Growth opportunities Growing the Direct channel Continue to grow established retail model Leverage strong unit economics Expand our e-commerce platform
Slide 17: Retail strategy and capabilities
GROWTH OPPORTUNITIES Retail strategy & Capabilities Designed with a high standard of visual merchandising Knowledgeable and passionate associates Unique store look and shopping experience Holistic, multi-channel approach Balance of brand execution and economic priorities
Slide 18: Target store economics
GROWTH OPPORTUNITIES Target Store economics Key Metrics Average First Year Sales* $1,100 – $1,300 Estimated Gross Square Feet 1,800 Average Sales/Gross Square Foot $610 – $720 4 Wall Contribution 20% – 25% Initial Investment** $360 Cash-on-Cash Return 75% Payback Period <1.5 years *in thousands **le
Slide 19: Consolidated net revenue growth
PROVEN TRACK RECORD Consolidated Net Revenue Growth ($ in millions) $350 $300 $250 $200 $150 $100 $50 $0 $288.9 $281.1 $256.7 $238.6 $203.8 $189.1 CY06 CY07 FY09 FY10 9 mo 9 mo FY10 FY11 Direct Indirect
Slide 20: Consolidated operating income performance
PROVEN TRACK RECORD Consolidated Operating income Performance ($ in millions) $60 $40 $20 $0 $54.3 $45.3 $45.7 $48.7 $27.2 $27.7 CY0 6CY07 FY09 FY10 9 mo 9 mo FY10 FY11* Margin 24.0% 19.3% 11.4% 15.8% 13.6% 19.0% *On a GAAP basis, operating income for the first nine months of FY11 was $26.8 million,
Slide 21: Long term performance targets
PROVEN TRACK RECORD Long Term performance targets Metric Target Total Revenue Growth Mid-High Teens Annual Store Growth (Unit Growth) 14-20 units/year Annual Comparable Store Sales Growth Mid-High Single Digits Operating Income Margin Expansion ~30 bps/year Annual Net Income Growth High Teens
Slide 22: Key investment highlights
Key investment highlights Iconic, authentic LIFESTYLE BRAND founded in 1982 Dynamic, MULTI -CHANNEL distribution model Exceptionally loyal, DIVERSE CONSUMER FOLLOWING High quality PORTFOLIO OF PRODUCTS that are distinctly Vera Bradley Multiple GROWTH OPPORTUNITIES PROVEN TRACK RECORD of performance
Slide 23: Our culture
our culture People Passion Creativity
Slide 24: [GRAPHIC]
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