Presented by Yale School of Management

July 11, 2024

Good morning, Broadsheet readers! Rep. Nancy Pelosi (D-Calif.) hints that the Biden ticket is still up in the air, ECB President Christine Lagarde is under fire for worker burnout, and Vera Bradley hopes to be the next rebrand success story.

– In the bag. Readers of a certain age will remember Vera Bradley, the brand of quilted, patterned bags that was everywhere in the 2000s, especially popular with tween and teen girls and college-age women. In recent years, the company behind the brand has struggled and is almost two years into an effort to turn around the business.

That effort has led to a rebrand, launched today, that aims to bring Vera Bradley into the 2020s with more options than just busy patterned, quilted bags. CEO Jackie Ardrey (head of Indiana-based Vera Bradley Inc., parent to both the namesake brand and the jewelry brand Pura Vida) is leading the effort. She joined in 2022 after stints at Grandin Road and Harry and David.

Despite its fall from the cultural zeitgeist, Vera Bradley remains a $470 million business, though that’s down from $500 million in fiscal year 2023. Its quilted purses, backpacks, and travel duffles are priced affordably, often under $100. Ardrey named her turnaround “Project Restoration,” tackling the four pillars of consumer, brand, product, and channel.

Actress Zooey Deschanel is the new spokesperson for quilted bag brand Vera Bradley as it attempts a comeback. Courtesy of Vera Bradley While the current business has suffered, some Gen Zers have gravitated toward “vintage” Vera Bradley on resale sites. Yet the company isn’t targeting them with this rebrand. Gen Z’s interest may be a fleeting trend, Ardrey says. Plus, young shoppers don’t buy very often, she argues. Nor is Vera Bradley’s new launch a nostalgia play to bring back its die-hard fans of the 2000s. Instead it’s going after the 35- to 55-year-old shopper. “When the brand was healthy, we had a lot more customers in this age range,” Ardrey explains. That buyer is an influential customer whose purchases extend across generations to her daughter and mother, the CEO argues.

Vera Bradley’s new products embrace bright color but leave some of its trademark patterns behind (or relegate them to the bag’s interior lining.) Actress Zooey Deschanel of New Girl fame, who’s famous for her 2010s style, is the brand’s new spokesperson.

Ardrey has been watching other successful rebrands, most notably CEO Fran Horowitz’s work at Abercrombie, but also rebrands at Coach and Banana Republic. “Rebrands that are successful—they’re not numerous,” Ardrey says. Her hope is that shoppers will embrace a new Vera Bradley too.

Emma Hinchliffe
emma.hinchliffe@fortune.com

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ALSO IN THE HEADLINES

- On second thought. Rep. Nancy Pelosi (D-Calif.) hinted that President Joe Biden could reconsider his decision to stay in the 2024 presidential race on MSNBC’s Morning Joe on Wednesday. Pelosi also stated that she would support the president no matter his decision. Wall Street Journal

- Chipping away. Advanced Micro Devices, the chip company run by CEO Lisa Su, announced that it will acquire AI startup Silo AI for $665 million. The move will help AMD build better AI models and better compete with chip rival Nvidia. Reuters

- Bank burnout. European Central Bank President Christine Lagarde is catching heat after an internal survey of ECB workers revealed a significant uptick in suicidal thoughts and symptoms of burnout. Nearly every respondent lamented “power games” at the bank while about 90% reported favoritism among its ranks. A spokesperson says the bank “take[s] the health and well-being of our staff very seriously” and is “reviewing and improving our internal reporting, investigating and disciplinary framework.” Fortune

- Counter culture. New York Times interviews with former employees, executives, and others associated with private equity firm Carlyle and cosmetics company Beautycounter detail how the latter's multi-level marketing formula, led by CEO Gregg Renfrew, contributed to its collapse following a $600 million investment from Carlyle three years ago.

- Vying for Venezuela. The Venezuelan political establishment is scrambling to suppress support for María Corina Machado, an opposition leader who is drawing massive support from struggling citizens. Machado is banned from holding political office until 2030. Bloomberg

MOVERS AND SHAKERS: The Trevor Project named Jaymes Blake as CEO, effective July 15; Blake will be its first nonbinary CEO. Signet Jewelers appointed Helen McCluskey as chair.

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