WEBVTT - Jackie Ardrey Talks Retail, Fashion and Handbags

0:00:02.440 --> 0:00:06.760
<v Speaker 1>Bloomberg Audio Studios, podcasts, radio news.

0:00:07.120 --> 0:00:10.600
<v Speaker 2>Jacqueline Ardrey. She is very broadly president and CEO with

0:00:10.640 --> 0:00:12.160
<v Speaker 2>me in person. It's great to see you.

0:00:12.480 --> 0:00:13.960
<v Speaker 1>Yeah, thanks Katie, great for having me.

0:00:14.200 --> 0:00:16.400
<v Speaker 2>So let's look ahead to the future. Tell us about

0:00:16.440 --> 0:00:21.240
<v Speaker 2>Project Restoration. It's built as this full three sixty brand transformation.

0:00:21.680 --> 0:00:23.320
<v Speaker 2>What does that look like in practice?

0:00:24.079 --> 0:00:27.360
<v Speaker 1>It's such an exciting transition for us as a brand.

0:00:28.320 --> 0:00:32.440
<v Speaker 1>We really eighteen months ago when I joined, we started

0:00:32.440 --> 0:00:36.000
<v Speaker 1>this really comprehensive analysis of the business and looking at

0:00:36.040 --> 0:00:40.800
<v Speaker 1>everything from our store experience, our website experience, our products,

0:00:41.640 --> 0:00:44.839
<v Speaker 1>everything that we could affect, and came up with this

0:00:44.880 --> 0:00:47.560
<v Speaker 1>plan that is really a four pillar plan. I've talked

0:00:47.560 --> 0:00:50.280
<v Speaker 1>about this a lot. That's what Project Restoration is. It's

0:00:50.720 --> 0:00:55.639
<v Speaker 1>it's addressing the consumer, it's addressing product, it's addressing our

0:00:55.840 --> 0:00:58.960
<v Speaker 1>channels of distribution, and then it's also addressing the brand.

0:00:59.040 --> 0:01:01.160
<v Speaker 1>So this is a real again, as you said, three

0:01:01.200 --> 0:01:05.560
<v Speaker 1>hundred and sixty degree transformation, and it is so important

0:01:05.640 --> 0:01:09.040
<v Speaker 1>I think for a brand transformation to look at the

0:01:09.120 --> 0:01:11.000
<v Speaker 1>kind of size and what we need to deliver to

0:01:11.080 --> 0:01:13.840
<v Speaker 1>change our results is you have to look at everything.

0:01:13.920 --> 0:01:17.960
<v Speaker 1>So we went back we a lot of sales data.

0:01:18.000 --> 0:01:22.200
<v Speaker 1>We looked at our history, but also looked at current competitors.

0:01:22.280 --> 0:01:24.120
<v Speaker 1>We looked at the market and said, you know, what

0:01:24.760 --> 0:01:27.119
<v Speaker 1>is the customer looking for? What does she need now?

0:01:27.560 --> 0:01:32.039
<v Speaker 1>And a big trend in accessories is around customization and personalization.

0:01:32.280 --> 0:01:36.200
<v Speaker 1>So we really set out to do something brand new

0:01:36.280 --> 0:01:40.320
<v Speaker 1>in the accessory space, keeping our colorful heritage, which is

0:01:40.360 --> 0:01:43.560
<v Speaker 1>you know, many people, as we talked just earlier, know

0:01:43.680 --> 0:01:46.160
<v Speaker 1>this brand and love this brand. We have a lot

0:01:46.280 --> 0:01:49.480
<v Speaker 1>of brand recognition for the size of our company, and

0:01:49.920 --> 0:01:53.400
<v Speaker 1>we just wanted to make it fresh and relevant and modern.

0:01:53.480 --> 0:01:56.480
<v Speaker 1>So I am so excited with what the team has

0:01:56.520 --> 0:02:01.080
<v Speaker 1>delivered here. Everything from all of our product really transformed.

0:02:01.080 --> 0:02:04.040
<v Speaker 1>It's all new, but you'll recognize it as Vera Bradley,

0:02:04.120 --> 0:02:06.120
<v Speaker 1>like when you when you walk into the room and

0:02:06.160 --> 0:02:08.760
<v Speaker 1>you see everything, and you walk into a retail store

0:02:08.840 --> 0:02:13.120
<v Speaker 1>experience our our new updated website. It feels like Vera Bradley,

0:02:13.240 --> 0:02:16.280
<v Speaker 1>but it's very modern and it's it's still colorful. It's

0:02:16.280 --> 0:02:19.840
<v Speaker 1>a nod to the heritage that the brand started with,

0:02:19.919 --> 0:02:23.760
<v Speaker 1>but it's it's just all I can say is that

0:02:23.800 --> 0:02:25.120
<v Speaker 1>it's it's all new and exciting.

0:02:25.400 --> 0:02:27.360
<v Speaker 2>Well, let's talk a little bit more in detail about

0:02:27.360 --> 0:02:29.640
<v Speaker 2>what to expect, because of course, I think very Bradley.

0:02:29.680 --> 0:02:33.359
<v Speaker 2>I think those Paisley wristlets and wallets that everyone in high.

0:02:33.200 --> 0:02:34.280
<v Speaker 1>School and college had.

0:02:34.639 --> 0:02:36.560
<v Speaker 2>So it sounds like you're still going to be colorful,

0:02:36.639 --> 0:02:42.080
<v Speaker 2>but more solids. For example, are you introducing new items actually,

0:02:42.080 --> 0:02:44.519
<v Speaker 2>such as items of clothing? Are you sticking to bags here?

0:02:44.840 --> 0:02:48.680
<v Speaker 1>We really are focusing more on our key heritage, which

0:02:48.840 --> 0:02:52.840
<v Speaker 1>is travel and handbags. And we still will have clothing,

0:02:52.880 --> 0:02:54.280
<v Speaker 1>you know, some of the some of the things. We're

0:02:54.320 --> 0:02:56.960
<v Speaker 1>deemphasizing that a little bit to really return to our

0:02:57.040 --> 0:03:01.240
<v Speaker 1>core and it's it's colorful Bill Paisley's in the line.

0:03:01.280 --> 0:03:03.400
<v Speaker 1>There's still things, but again it's just a it's a

0:03:03.440 --> 0:03:05.880
<v Speaker 1>modern and fresh take because if you really look at

0:03:05.919 --> 0:03:08.919
<v Speaker 1>the retailers who are doing well now, you've got to,

0:03:09.320 --> 0:03:11.680
<v Speaker 1>you know, two segments. You've got the value segment and

0:03:11.760 --> 0:03:15.720
<v Speaker 1>you've got brands who are transformed or being are really innovative,

0:03:15.840 --> 0:03:18.320
<v Speaker 1>and that's really what we're going for. We're really going

0:03:18.320 --> 0:03:21.480
<v Speaker 1>for this innovative solution. And when you look at how

0:03:21.800 --> 0:03:25.280
<v Speaker 1>the line all works together, we believe, you know, a

0:03:25.400 --> 0:03:29.240
<v Speaker 1>trend right now and accessories is around again. Customization like this.

0:03:29.440 --> 0:03:31.680
<v Speaker 1>You know, the modern woman is, she's doing so much.

0:03:31.960 --> 0:03:34.440
<v Speaker 1>There's this whole phenomenon around a bag within a bag,

0:03:34.560 --> 0:03:36.280
<v Speaker 1>so you have a tote bag and then you have

0:03:36.360 --> 0:03:38.600
<v Speaker 1>your wristlet or you have you know, other small things

0:03:38.640 --> 0:03:41.720
<v Speaker 1>that you want to tuck in there. We've provided these

0:03:41.840 --> 0:03:45.000
<v Speaker 1>really thoughtful solutions for her, which is is a hallmark

0:03:45.000 --> 0:03:45.720
<v Speaker 1>of the brand as well.

0:03:45.840 --> 0:03:48.280
<v Speaker 2>Let's talk about who she is because reading through your

0:03:48.320 --> 0:03:50.760
<v Speaker 2>most recent earnings release, your earnings call, it seems like

0:03:50.760 --> 0:03:53.720
<v Speaker 2>you're targeting that thirty five to fifty five year old woman,

0:03:53.840 --> 0:03:56.800
<v Speaker 2>so not exactly high schoolers. And I mean thinking about that,

0:03:56.880 --> 0:03:59.040
<v Speaker 2>it reminds me a bit of what Abercrombie and Fitch

0:03:59.120 --> 0:04:02.200
<v Speaker 2>is doing, that reimagination that they've had their brand and

0:04:02.240 --> 0:04:06.080
<v Speaker 2>focusing on a slightly older client. What was the thought

0:04:06.080 --> 0:04:08.360
<v Speaker 2>process and the decision tree that led you to that

0:04:08.400 --> 0:04:09.400
<v Speaker 2>specific age group.

0:04:09.560 --> 0:04:13.400
<v Speaker 1>Yeah, great question. We're very fortunate in that we have

0:04:13.520 --> 0:04:17.480
<v Speaker 1>a multi generational customer. So if you look at where

0:04:17.800 --> 0:04:21.120
<v Speaker 1>you know, in our different age ranges where we have

0:04:21.800 --> 0:04:24.800
<v Speaker 1>customers and where we've always had customers, we're very fortunate

0:04:24.880 --> 0:04:27.760
<v Speaker 1>and that we're anywhere from eighteen to sixty five. So

0:04:28.520 --> 0:04:31.000
<v Speaker 1>that's we want to keep that. The reason for the

0:04:31.040 --> 0:04:33.200
<v Speaker 1>focus on that thirty five to fifty four year old

0:04:33.320 --> 0:04:37.120
<v Speaker 1>is really that's you know, when the brand was really successful,

0:04:37.400 --> 0:04:41.159
<v Speaker 1>that's really where we had many more customers than we

0:04:41.200 --> 0:04:44.640
<v Speaker 1>do today. So that was one reason. The second reason

0:04:44.720 --> 0:04:50.080
<v Speaker 1>is that that generation influences both her kids and her mom,

0:04:50.320 --> 0:04:53.280
<v Speaker 1>and that is really what is so special about this

0:04:53.360 --> 0:04:56.480
<v Speaker 1>brand is that the stories that I hear from customers

0:04:56.640 --> 0:05:01.560
<v Speaker 1>about their first Vera Bradley bag, it's almost always connected

0:05:01.560 --> 0:05:03.839
<v Speaker 1>to somebody else in their household, which is really special.

0:05:04.640 --> 0:05:06.400
<v Speaker 1>But you know, the thirty five to fifty four year

0:05:06.400 --> 0:05:09.640
<v Speaker 1>olds also they have more money to spend as well,

0:05:09.720 --> 0:05:13.360
<v Speaker 1>So that was another more practical reason. So for all

0:05:13.400 --> 0:05:15.080
<v Speaker 1>those reasons, that's why we refocused there.

0:05:15.200 --> 0:05:17.520
<v Speaker 2>Well, let's talk about when this could start to bear fruit.

0:05:17.560 --> 0:05:20.800
<v Speaker 2>Of course, you're expecting a stronger back half of the year,

0:05:20.880 --> 0:05:23.839
<v Speaker 2>but is that enough time for that turnaround to really

0:05:23.880 --> 0:05:26.200
<v Speaker 2>take root? What gives you the confidence that this is

0:05:26.240 --> 0:05:28.600
<v Speaker 2>that the second half of twenty twenty four is when

0:05:28.600 --> 0:05:29.720
<v Speaker 2>we'll start seeing this pick up.

0:05:29.880 --> 0:05:32.640
<v Speaker 1>Yeah. I mean, the one thing that we did that

0:05:32.680 --> 0:05:36.640
<v Speaker 1>I think we did really well last year was reposition

0:05:36.720 --> 0:05:41.119
<v Speaker 1>our cost structure so that we could afford to invest

0:05:41.160 --> 0:05:44.520
<v Speaker 1>in the marketing that we needed to actually launch this transformation,

0:05:44.680 --> 0:05:47.320
<v Speaker 1>and that is really what you'll see. You'll see a

0:05:47.360 --> 0:05:51.680
<v Speaker 1>lot of a lot of marketing from the minute we

0:05:51.760 --> 0:05:54.960
<v Speaker 1>launched this in a couple of weeks through the rest

0:05:54.960 --> 0:05:57.839
<v Speaker 1>of the year, so we were able to really reinvest

0:05:57.920 --> 0:06:00.000
<v Speaker 1>in marketing to kind of get the word out there

0:06:00.120 --> 0:06:03.880
<v Speaker 1>for both For our existing customers are extremely loyal and

0:06:04.760 --> 0:06:06.800
<v Speaker 1>we think that they're going to be delighted by some

0:06:06.839 --> 0:06:09.520
<v Speaker 1>of the changes that we've made, but we also need

0:06:09.520 --> 0:06:12.359
<v Speaker 1>new customers and new people to interact with the brand.

0:06:12.440 --> 0:06:15.360
<v Speaker 1>So that's where our marketing, our new marketing plans come in.

0:06:15.520 --> 0:06:17.000
<v Speaker 2>Well, you only have about a minute left with you,

0:06:17.080 --> 0:06:21.040
<v Speaker 2>but we're within that marketing trajectory. Are you investing Are

0:06:21.040 --> 0:06:23.440
<v Speaker 2>we talking you know, bottom of the funnel sort of

0:06:23.720 --> 0:06:26.520
<v Speaker 2>social media sort of type initiatives or what are you

0:06:26.560 --> 0:06:27.480
<v Speaker 2>actually investing in?

0:06:27.839 --> 0:06:32.080
<v Speaker 1>It's really all through the funnel, so you'll see a

0:06:32.120 --> 0:06:34.840
<v Speaker 1>lot more top of funnel than we've done. We have

0:06:35.480 --> 0:06:39.520
<v Speaker 1>a celebrity partner who will be introducing in a short

0:06:39.560 --> 0:06:43.600
<v Speaker 1>time here, which is we're really excited about, and just

0:06:44.040 --> 0:06:48.599
<v Speaker 1>all through the funnel. We'll be spending our marketing investments.

0:06:48.760 --> 0:06:51.520
<v Speaker 2>Well, really excited to see this turnaround get off the

0:06:51.520 --> 0:06:54.560
<v Speaker 2>ground of course, coming in mid July, Jacqueline Audrey, it's

0:06:54.560 --> 0:06:55.159
<v Speaker 2>great to see you.

0:06:55.160 --> 0:06:56.640
<v Speaker 1>Thank you so much. Thank you Katie,