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Vera Bradley (VRA)
NASDAQ:VRA
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Vera Bradley
(NASDAQ:VRA)
42Neutral
Vera Bradley (VRA) vs. S&P 500 (SPY)
Market Cap
$62.33M
Dividend YieldN/A
Average Volume (3M)266.24K
Price to Earnings (P/E)―
Beta (1Y)1.09
Revenue Growth-20.99%
EPS Growth-976.24%
CountryUS
Employees1,725
SectorConsumer Cyclical
Sector Strength52
IndustryApparel - Footwear & Accessories
Share Statistics
EPS (TTM)-2.22
Shares Outstanding27,700,900
10 Day Avg. Volume207,410
30 Day Avg. Volume266,244
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.16
Price to Cash Flow (P/CF)-0.70
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Vera Bradley Business Overview & Revenue Model
Company DescriptionVera Bradley, Inc., together with its subsidiaries, designs, manufactures, and sells women's handbags, luggage and travel items, fashion and home accessories, and gifts. It operates through three segments: Vera Bradley Direct, Vera Bradley Indirect, and Pura Vida. The company offers bag products, such as totes, crossbodies, satchels, clutches, backpacks, baby bags, and lunch bags; accessories, including wallets, wristlets, eyeglass cases, scarves, and various technology accessories; bracelets, rings, and necklaces under Pura Vida brand name; and travel products consisting of rolling luggage, cosmetics, and travel and packing accessories, as well as travel bags comprising duffel and weekend bags. It also provides home products that include throw blankets, beach towels, and comforters, as well as items, such as mugs and tumblers; apparel/footwear comprising sleepwear, footwear, cotton face masks, outerwear, socks, and scarves; and stationery and merchandising products, as well as freight, licensing, and gift card breakage services. The company sells its Vera Bradley branded products through its full-line and factory outlet stores in the United States; and verabradley.com, an online outlet site, as well as its annual outlet sale in Fort Wayne, Indiana. As of January 29, 2022, it operated 70 full-line and 75 factory outlet stores. The company sells its Pura Vida branded products through wholesale retailers, as well as through Pura Vida websites, including www.puravidabracelets.com, www.puravidabracelets.eu, and www.puravidabracelets.ca. It also sells its Vera Bradley branded products to approximately 1,800 specialty retail locations, department stores, national accounts, third party e-commerce sites, and third-party inventory liquidators, as well as through licensing agreements. Vera Bradley, Inc. was incorporated in 1982 and is headquartered in Roanoke, Indiana.
How the Company Makes MoneyVera Bradley generates revenue primarily through the sale of its fashion and lifestyle products, which include handbags, luggage, accessories, and home goods. The company's revenue model is centered around both direct-to-consumer sales via its network of retail stores and e-commerce platform, as well as wholesale distribution to department stores and specialty retailers. Key revenue streams include the sales of its signature patterned bags, which are particularly popular. Additionally, Vera Bradley engages in strategic partnerships and licensing agreements to expand its product offerings and brand reach, contributing to its overall earnings.
Vera Bradley Financial Statement Overview
Summary
Vera Bradley faces significant financial challenges, evidenced by declining revenues, profitability, and cash flows. The balance sheet is relatively stable but impacted by recent losses, reducing equity returns. The company needs to address operational inefficiencies and improve cash flow management to stabilize its financial health.Income Statement
Vera Bradley has experienced a decline in revenue and profitability over the years. The gross profit margin is relatively healthy, but net income has turned negative, affecting the net profit margin adversely. The EBIT and EBITDA margins have also deteriorated, indicating operational challenges. Revenue growth has been negative, showing a downward trend in sales performance.45
Neutral
Balance Sheet
The company maintains a moderate debt-to-equity ratio, suggesting a balanced leverage position. However, the return on equity has turned negative due to recent net losses. The equity ratio is stable, indicating a decent proportion of assets funded by equity. Liquidity might be a concern with declining cash reserves.50
Neutral
Cash Flow
The cash flow situation is concerning, with negative operating and free cash flows in recent periods. Free cash flow growth has been negative, signaling potential liquidity issues. The operating cash flow to net income ratio is negative due to ongoing losses. Cash flow management needs significant improvement to support operational needs.40
Negative
| Breakdown | |||||
| TTM | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 405.27M | 371.97M | 470.79M | 499.96M | 540.45M | 468.27M | Gross Profit |
| 210.06M | 186.84M | 256.41M | 238.94M | 287.94M | 265.52M | EBIT |
| -18.38M | -42.36M | 15.53M | -25.61M | 26.91M | 13.06M | EBITDA |
| 2.36M | -42.36M | 47.78M | 1.49M | 59.82M | 56.69M | Net Income Common Stockholders |
| -17.07M | -62.19M | 7.84M | -79.38M | 17.84M | 8.68M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 5.87M | 30.37M | 77.30M | 46.59M | 88.44M | 65.47M | Total Assets |
| 176.90M | 306.69M | 380.79M | 404.50M | 521.86M | 513.79M | Total Debt |
| 77.06M | 89.64M | 81.00M | 94.38M | 99.56M | 113.86M | Net Debt |
| 71.19M | 59.28M | 3.70M | 47.78M | 11.12M | 49.68M | Total Liabilities |
| 126.90M | 127.73M | 120.86M | 142.41M | 163.44M | 169.07M | Stockholders Equity |
| 50.00M | 178.96M | 259.93M | 251.38M | 327.44M | 314.91M |
| Cash Flow | Free Cash Flow | ||||
| -16.10M | -24.48M | 44.22M | -21.66M | 34.37M | 14.96M | Operating Cash Flow |
| -8.82M | -14.10M | 47.99M | -13.42M | 39.86M | 20.70M | Investing Cash Flow |
| -7.27M | -10.37M | -13.77M | -8.24M | -4.15M | 17.68M | Financing Cash Flow |
| -22.55M | -22.52M | -3.55M | -20.11M | -11.41M | -24.15M |
Vera Bradley Technical Analysis
Negative
2.25
Price Trends
3.09
Negative
3.85
Negative
4.80
Negative
Market Momentum
-0.25
Negative
34.61
Neutral
10.10
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VRA, the sentiment is Negative. The current price of 2.25 is below the 20-day moving average (MA) of 2.55, below the 50-day MA of 3.09, and below the 200-day MA of 4.80, indicating a bearish trend. The MACD of -0.25 indicates Negative momentum. The RSI at 34.61 is Neutral, neither overbought nor oversold. The STOCH value of 10.10 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for VRA.
Vera Bradley Risk Analysis
Vera Bradley disclosed 41 risk factors in its most recent earnings report. Vera Bradley reported the most risks in the “Production” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Vera Bradley Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
59 Neutral | $12.17B | 11.04 | -1.10% | 3.77% | 1.26% | -19.70% | |
48 Neutral | $66.33M | ― | -37.63% | ― | -5.59% | -287.73% | |
46 Neutral | $61.25M | ― | -50.98% | ― | -18.93% | 35.38% | |
45 Neutral | $61.14M | ― | -22.43% | ― | -3.10% | -381.92% | |
42 Neutral | $62.33M | ― | -28.34% | ― | -20.99% | -976.24% | |
42 Neutral | $17.09M | ― | -148.78% | ― | -11.06% | -175.45% | |
33 Underperform | $111.74M | ― | -521.67% | ― | -10.65% | -129.52% |
* Consumer Cyclical Sector Average
Performance Comparison
VRA
Vera Bradley
2.30
-4.28
-65.05%
FOSL
Fossil Group
1.26
0.30
31.25%
PLCE
Children's Place
8.59
-1.64
-16.03%
TLYS
Tilly's
2.19
-4.35
-66.51%
DLTH
Duluth Holdings
1.82
-2.98
-62.08%
LVLU
Lulu's Fashion Lounge Holdings
0.45
-1.11
-71.15%
Vera Bradley Earnings Call Summary
Earnings Call Date: Mar 12, 2025 | % Change Since: -17.28% | Next Earnings Date: Jun 4, 2025
Earnings Call Sentiment Neutral
The earnings call reflected a mixed outlook for Vera Bradley. While there were notable achievements in high-income customer growth and successful marketplace performance, significant challenges were evident in declining revenues and profitability. The emphasis on strategic transformation and cost savings provides a positive outlook but is tempered by the current financial performance and economic headwinds.Highlights
Strong Pipeline of New Business Development
Vera Bradley has a strong pipeline of new business development in the indirect channel expected to bear fruit later this year.
10% Growth in High-Income Customer Segment
Achieved approximately 10% growth among customers aged 18 to 34 with household incomes above $100,000, highlighting future opportunities.
Successful Target Marketplace Performance
The Target Marketplace delivered exceptional results, demonstrating the importance of engaging customers in their preferred shopping environments.
Urban Outfitters Collaboration Success
The Urban Outfitters collaboration was a standout performer in Q4, aligning well with Vera Bradley's target demographic.
Inventory Optimization Success
Year-end inventory was 7% below prior year levels with a further 10% reduction targeted for fiscal 2026.
Cost Savings and Financial Position
The company expects to deliver cost savings of at least $20 million in fiscal 2026, with a strong financial position of no debt and $30 million in cash.
Lowlights
Decline in Fourth Quarter Revenues
Fourth quarter revenues were $100 million, down from $133.3 million in the prior year fourth quarter.
Challenges in Outlet Stores
Branded outlet stores experienced declines in both traffic and conversion due to macroeconomic pressures.
Decrease in Gross Margin
Q4 gross margin was 45.7%, down from 52.3% last year, reflecting a mix shift across store and online channels.
Significant Decrease in Pura Vida Segment Revenues
Pura Vida segment revenues for the fourth quarter totaled $13.6 million, a 44% decrease from $24.2 million in the prior year fourth quarter.
Net Loss for the Fourth Quarter
The net loss for the fourth quarter totaled $8.3 million, compared to net income of $3.5 million last year.
Company Guidance
In the fourth quarter of fiscal 2025, Vera Bradley reported revenues of $100 million, a significant decrease from $133.3 million the previous year, with a net loss of $8.3 million compared to a net income of $3.5 million last year. The company experienced challenges in its direct channel, with a 17.8% revenue decline, compounded by an unexpected shift from outlet store sales to e-commerce. Despite these challenges, Vera Bradley achieved approximately 10% growth among customers aged 18 to 34 with household incomes above $100,000, and saw promising results from its Target Marketplace initiative. The gross margin fell to 45.7% from 52.3%, attributed to a strategic shift in promotional and pricing strategies. For fiscal 2026, the company aims for revenues of approximately $280 million, targeting a gross margin of 52.5% and a significant SG&A expense reduction to $155 million. The sale of the Pura Vida business is expected to close by the end of the first quarter, marking a strategic pivot. Vera Bradley plans a 10% inventory reduction and anticipates a year-end cash balance of $40 million, positioning itself for a year of stabilization and strategic growth.Vera Bradley Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
Vera Bradley Appoints Andrew Meslow to Board of Directors
Neutral
Feb 10, 2025
On February 10, 2025, Vera Bradley announced the appointment of Andrew Meslow, former CEO of L Brands and Bath & Body Works, to its Board of Directors. Meslow’s extensive experience in retail operations and leadership is expected to strengthen Vera Bradley’s strategic initiatives, particularly in Project Restoration. Concurrently, Mary Lou Kelley, who served as a Board member since 2015, announced her retirement effective February 7, 2025. Her departure is amicable and not due to any disagreements, marking the end of her impactful tenure that provided valuable retail and E-commerce insights.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.