Tag: Consumer Cyclical

Vera Bradley (VRA) – Streamlined Leadership

Posted on by cpereira@noblefcm.com


Friday, January 27, 2023

Joe Gomes, Managing Director – Generalist Analyst, Noble Capital Markets, Inc.

Joshua Zoepfel, Research Associate, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Streamlined Leadership. We had an opportunity to speak with Vera Bradley management about the recently announced streamlined corporate structure designed to drive cost savings, add more focus on marketing and merchandising, and position the Company to deliver steady top- and bottom-line growth. Ultimately, the new structure should produce annualized savings of over $2 million, on top of the $25 million of cost reductions previously identified.

Specifics. As part of the new structure, the Company eliminated the positions of Vera Bradley Brand President, Chief Creative Officer, and Chief Revenue Officer. The Company will add a position of Senior Vice President of Merchandising and Design for Vera Bradley. In addition, Alison Hiatt has joined the Company as Chief Marketing Officer to oversee digital marketing, customer data, and ecommerce. Ms. Hiatt is an accomplished consumer and marketing leader with a versatile and deep track record of success for several industry-leading brands.


Get the Full Report

Equity Research is available at no cost to Registered users of Channelchek. Not a Member? Click ‘Join’ to join the Channelchek Community. There is no cost to register, and we never collect credit card information.

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision. 

Bassett Furniture (BSET) – Solid 4Q22 but What About 2023?

Posted on by cpereira@noblefcm.com


Thursday, January 26, 2023

Bassett Furniture Industries, Incorporated manufactures, markets, and retails home furnishings in the United States. The company operates in three segments: Wholesale, Retail, and Logistical Services. It is involved in the design, manufacture, sourcing, sale, and distribution of furniture products to a network of company-owned and licensee-owned Bassett Home Furnishings (BHF) retail stores, as well as independent furniture retailers; and wood and upholstery operations. As of September 16, 2017, the company operated a network of 91 company-and licensee-owned stores. It also provides shipping, delivery, and warehousing services to customers in the furniture industry. In addition, the company owns and leases retail store properties. It also distributes its products through other multi-line furniture stores, Bassett galleries or design centers, specialty stores, and mass merchants. Bassett Furniture Industries was founded in 1902 and is based in Bassett, Virginia.

Joe Gomes, Managing Director – Generalist Analyst, Noble Capital Markets, Inc.

Joshua Zoepfel, Research Associate, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

4Q22 Results. Basset reported revenue of $121 million for the fiscal fourth quarter, up 5.8% y-o-y, and above our $113 million estimate. Wholesale revenue declined 1.6% to $74.6 million, while Retail revenue rose 14.9% to $76.3 million. Operating income was $6.7 million, flat with the $6.6 million in 4Q21. Bassett reported net income of $5.0 million, or $0.55 per share, and $0.61 per share from continuing operations, compared to net income of $5.0 million, or $0.52 per share, and $0.49 per share from continuing operations, in the prior year. We had forecast EPS from continuing operations of $0.47.

Once Again, Retail the Star Performer. Continuing a trend, Bassett’s retail network was the quarter’s star performer, generating the fourth record quarter for the year, with fourth quarter deliveries of $76.3 million and $5.8 million of operating profit, more profitable than any previous comparable period on record.


Get the Full Report

Equity Research is available at no cost to Registered users of Channelchek. Not a Member? Click ‘Join’ to join the Channelchek Community. There is no cost to register, and we never collect credit card information.

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision. 

Kandi Technologies Group, Inc. (KNDI) – Kandi gets major order for crossover golf carts

Posted on by cpereira@noblefcm.com


Tuesday, December 20, 2022

Kandi Technologies Group, Inc. (KNDI), headquartered in Jinhua Economic Development Zone, Zhejiang Province, is engaged in the research, development, manufacturing, and sales of various vehicular products. Kandi conducts its primary business operations through its wholly-owned subsidiary, Zhejiang Kandi Technologies Group Co., Ltd. (“Zhejiang Kandi Technologies”), formerly, Zhejiang Kandi Vehicles Co., Ltd.) and its subsidiaries including Zhejiang Kandi Smart Battery Swap Technology Co., Ltd, and SC Autosports, LLC (d/b/a Kandi America), the wholly-owned subsidiary of Kandi in the United States, and its wholly-owned subsidiary, Kandi America Investment, LLC. Zhejiang Kandi Technologies has established itself as one of China’s leading manufacturers of pure electric vehicle parts and off-road vehicles.

Michael Heim, CFA, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Kandi received a letter of intent from Coleman Powersports to purchase 4,800 electric golf carts for a value of $27.6 million. Coleman Powersports, a division of Newell Brands (a distributor of various camping and outdoor living gear) began purchasing the Kandi golf carts in April for sales through Lowes stores and has increased the order volume steadily up to a rate of 1,000 in September. The sales to Coleman are expected to occur in the 2023 first quarter and thus represent an 60% increase in orders for Coleman over September sales.

What does this mean for Kandi? The Off-road vehicle segment is the fastest growing division of  Kandi growing more than 400% year over year in the September quarter. What’s more, it is the most profitable division for the company with operating margins in excess of 25%. The company has shifted attention away from electric cars and towards off-road vehicles and the shift has clearly paid off. The fact that the sales are going to established brand names such as Coleman and Lowes is significant and lends credence of future sales growth.


Get the Full Report

Equity Research is available at no cost to Registered users of Channelchek. Not a Member? Click ‘Join’ to join the Channelchek Community. There is no cost to register, and we never collect credit card information.

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision. 

Commercial Vehicle Group, Inc. (CVGI) – A Business Transformation

Posted on by cpereira@noblefcm.com


Thursday, December 01, 2022

Joe Gomes, Senior Research Analyst, Noble Capital Markets, Inc.

Patrick McCann, Research Associate, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Initiation. We are initiating research coverage of Commercial Vehicle Group, Inc. (CVG) with an outperform rating and a $10.00 price target. CVG is in the midst of a business transformation to drive top line revenue and overall margin improvements, with a goal of doubling revenue and increasing adjusted operating margin by 300 basis points by the 2025-2027 time frame.

Attractive End Markets. Long-term prospects for CVG’s key end markets are attractive. Demand for class 8 trucks exceeds supply and, with an aging fleet, is likely to continue. The ongoing switch to electric vehicles is opening a massive opportunity for CVG. And while the warehouse automation vertical is currently challenging, longer term we expect to see significant growth. 


Get the Full Report

Equity Research is available at no cost to Registered users of Channelchek. Not a Member? Click ‘Join’ to join the Channelchek Community. There is no cost to register, and we never collect credit card information.

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.