The following video is from Wednesday's MarketFoolery podcast, in which host Chris Hill, along with analysts Austin Smith and Bryan Hinmon, discuss the top business and investing stories.
Vera Bradley (NASDAQ: VRA ) stock rose when the company raised guidance for the holiday quarter. For some reason, however, Vera Bradley makes less money off direct sales than it does with indirect sales. In this segment, the guys give credit to Vera Bradley for getting the business to this point, but they also lay out the challenges ahead. While Coach (NYSE: COH ) has demonstrated it can stretch its brand, Vera Bradley has yet to prove it can.
The retail space is in the midst of the biggest paradigm shift since mail order took off at the turn of last century, and companies such as Vera Bradley and Coach are being forced to innovate to adapt. Only the most forward-looking and capable companies will survive, and they'll handsomely reward investors who understand the landscape. You can read about the 3 Companies Ready to Rule Retail in our special report. Uncovering these top picks is free today; just click here to read more.
The relevant video segment can be found between 10:31 and 15:30.