Vera Bradley (VRA) AI Stock Analysis

• Market Cap: $80.46M
• Dividend Yield: N/A
• Average Volume (3M): 1.23M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.24
• Revenue Growth: -31.07%
• EPS Growth: -8386.91%
• Country: US
• Employees: 1,725
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Footwear & Accessories
• EPS (TTM): -0.02
• Shares Outstanding: 27,936,522
• 10 Day Avg. Volume: 3,128,259
• 30 Day Avg. Volume: 1,225,631
• PEG Ratio: <0.01
• Price to Book (P/B): 0.60
• Price to Sales (P/S): 0.29
• P/FCF Ratio: -4.42
• Enterprise Value/Market Cap: 1.55
• Enterprise Value/Revenue: 0.36
• Enterprise Value/Gross Profit: 0.74
• Enterprise Value/Ebitda: -7.18
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 49 Neutral
• Price Target: $2.50 ▼(-13.19% Downside)

Vera Bradley's overall stock score is primarily impacted by its weak financial performance and concerning valuation. While there are some positive technical indicators and strategic initiatives, the significant revenue decline and financial losses weigh heavily on the score. The mixed sentiment from the earnings call reflects both challenges and potential areas for growth.

Positive Factors

Strategic Initiatives

The company's focus on brand sharpening, omnichannel strategy, and operational improvements indicates a long-term commitment to revitalizing its market position and enhancing efficiency.

New Customer Acquisition

The increase in new customers suggests effective marketing strategies and potential for future revenue growth as the company expands its customer base.

Board Appointment

The addition of Ivan Brockman to the board brings valuable expertise and guidance, potentially strengthening corporate governance and strategic decision-making.

Negative Factors

Revenue Decline

A significant revenue decline highlights ongoing challenges in maintaining sales momentum, which may affect long-term financial stability and market competitiveness.

Profitability Issues

Sustained net losses indicate difficulties in achieving profitability, which could hinder reinvestment in growth initiatives and affect shareholder value.

Decline in Indirect Segment

A sharp decline in indirect segment revenues suggests weakening demand in key distribution channels, posing risks to revenue diversification and overall sales.

Vera Bradley Business Overview & Revenue Model

Company Description

Vera Bradley, Inc. is a designer and retailer of stylish and functional accessories, primarily known for its signature quilted cotton bags and travel items. Founded in 1982, the company operates in the consumer goods sector, focusing on handbags, luggage, and various accessories, often featuring vibrant patterns and colors. Vera Bradley products are sold through a combination of branded retail stores, e-commerce platforms, and select third-party retailers, catering to a diverse customer base seeking both practicality and fashion in their everyday items.

How the Company Makes Money

Vera Bradley generates revenue through multiple key streams, primarily from the sale of its handbags, luggage, and accessories. The company operates a direct-to-consumer model through its own retail stores and its e-commerce website, which allows it to capture higher profit margins. Wholesale distribution to department stores and specialty retailers also contributes to its revenue. Additionally, Vera Bradley engages in seasonal promotions and collaborates with other brands for limited-edition collections, enhancing brand visibility and driving sales. The company also leverages its strong brand identity and loyal customer base to introduce new product lines and expand its market reach, ensuring a steady flow of income.

Vera Bradley Financial Statement Overview

Summary

Vera Bradley's financial performance is challenged by declining revenues, profitability, and cash flows. The income statement shows negative growth and deteriorating margins. The balance sheet indicates manageable leverage but declining equity and assets. Cash flow issues are significant, with negative operating cash flow and free cash flow, raising liquidity concerns.

Income Statement

Vera Bradley's income statement shows a declining trend in revenue and profitability. The TTM revenue has decreased compared to the previous year, with revenue growth rate being negative. Gross and net profit margins have deteriorated, reflecting operational challenges. The negative EBIT and EBITDA margins highlight ongoing profitability issues.

Balance Sheet

The balance sheet indicates a moderate financial position with some concerns. The debt-to-equity ratio is reasonable, showing manageable leverage. However, the declining stockholders' equity and total assets over time suggest reduced financial stability. The equity ratio remains adequate but has been decreasing, indicating potential risk if trends continue.

Cash Flow

Cash flow analysis reveals significant challenges. The operating cash flow to net income ratio is negative, implying operational cash flow issues. Free cash flow has declined, and the company has been unable to generate positive free cash flow recently, raising concerns about liquidity and financial flexibility.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	343.02M	371.97M	470.79M	499.96M	540.45M	468.27M
Gross Profit	167.70M	186.84M	256.41M	238.94M	287.94M	265.52M
EBITDA	-17.37M	-3.22M	47.78M	8.09M	59.82M	56.69M
Net Income	-87.53M	-62.19M	7.84M	-79.38M	17.84M	8.68M
Balance Sheet
Total Assets	267.94M	306.69M	380.79M	404.50M	521.86M	513.79M
Cash, Cash Equivalents and Short-Term Investments	11.28M	30.37M	77.30M	46.59M	88.44M	65.47M
Total Debt	80.91M	89.64M	81.00M	94.38M	99.56M	113.86M
Total Liabilities	121.91M	127.73M	120.86M	142.41M	163.44M	169.07M
Stockholders Equity	146.03M	178.96M	259.93M	251.38M	327.44M	314.91M
Cash Flow
Free Cash Flow	-28.84M	-24.48M	44.22M	-21.66M	34.37M	14.96M
Operating Cash Flow	-17.45M	-14.10M	47.99M	-13.42M	39.86M	20.70M
Investing Cash Flow	-10.48M	-10.37M	-13.77M	-8.24M	-4.15M	17.68M
Financing Cash Flow	-15.98M	-22.52M	-3.55M	-20.11M	-11.41M	-24.15M

Vera Bradley Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.88
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VRA, the sentiment is Positive. The current price of 2.88 is above the 20-day moving average (MA) of 2.55, above the 50-day MA of 2.30, and above the 200-day MA of 2.27, indicating a bullish trend. The MACD of 0.14 indicates Negative momentum. The RSI at 59.65 is Neutral, neither overbought nor oversold. The STOCH value of 40.29 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for VRA.

Vera Bradley Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RCKY	76 Outperform	$230.06M	11.21	8.67%	2.12%	4.13%	53.56%
SHOO	69 Neutral	$3.04B	53.19	6.68%	2.25%	6.26%	-66.51%
WEYS	68 Neutral	$289.41M	11.96	9.57%	10.25%	-3.64%	-16.12%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
WWW	59 Neutral	$1.33B	15.46	25.57%	1.72%	3.61%	―
VRA	49 Neutral	$80.46M	―	-43.20%	―	-31.07%	-8386.91%
FORD	41 Neutral	―	―	-235.29%	―	-30.05%	-5.28%

Vera Bradley Corporate Events

Vera Bradley Appoints Melinda Paraie as Chief Brand Officer

On October 29, 2025, Vera Bradley announced the appointment of Melinda Paraie as Chief Brand Officer, effective November 1, 2025. Paraie, who has a robust background in merchandising and brand management from her previous roles at Cath Kidston and Tapestry, Inc., is expected to play a crucial role in revitalizing Vera Bradley’s market position. Her appointment is seen as a strategic move to enhance product innovation and expand the brand’s market reach, leveraging her expertise to strengthen consumer engagement and drive growth.

The most recent analyst rating on (VRA) stock is a Hold with a $2.50 price target. To see the full list of analyst forecasts on Vera Bradley stock, see the VRA Stock Forecast page.

Vera Bradley Amends Credit Agreement with JP Morgan

On October 21, 2025, Vera Bradley, Inc. and its subsidiaries entered into a Fifth Amendment to their Credit Agreement and a Second Amendment to their Pledge and Security Agreement with JP Morgan Chase Bank. The amendments allow the sale of certain real property assets without repayment obligations, remove restrictions on sale and leaseback transactions, and increase the asset disposal limit outside the ordinary course of business. Additionally, they grant security interests in intellectual property to JP Morgan Chase, enhancing the company’s financial flexibility and potentially impacting its operational strategies.

The most recent analyst rating on (VRA) stock is a Hold with a $2.50 price target. To see the full list of analyst forecasts on Vera Bradley stock, see the VRA Stock Forecast page.

Vera Bradley Extends Shareholder Rights Plan to 2026

On October 10, 2025, Vera Bradley announced an extension of its shareholder rights plan, originally set to expire on October 11, 2025, now extended to October 11, 2026. This move, approved unanimously by the Board of Directors, aims to protect shareholders’ interests and prevent hostile takeovers, ensuring the company can make informed decisions for long-term value.

The most recent analyst rating on (VRA) stock is a Hold with a $2.00 price target. To see the full list of analyst forecasts on Vera Bradley stock, see the VRA Stock Forecast page.

Vera Bradley Announces CMO Departure Effective October 9

On October 1, 2025, Vera Bradley announced the departure of its Chief Marketing Officer, Alison Hiatt, effective October 9, 2025. The company has entered into a Release and Waiver Agreement with Ms. Hiatt, which outlines her severance package, including salary continuation, benefits, and potential bonus payments. This leadership change may impact the company’s marketing strategies and stakeholder relations as it adjusts to the transition.

The most recent analyst rating on (VRA) stock is a Hold with a $2.00 price target. To see the full list of analyst forecasts on Vera Bradley stock, see the VRA Stock Forecast page.

Vera Bradley Reports Q2 2026 Financial Results

Vera Bradley, Inc., based in Fort Wayne, Indiana, is a prominent designer of women’s handbags, luggage, fashion accessories, and unique gifts, known for its innovative designs and iconic patterns. In its latest earnings report for the second quarter of fiscal year 2026, the company revealed a decline in net revenues and a net loss from continuing operations, reflecting ongoing challenges in the retail sector. The company reported consolidated net revenues of $70.9 million, a decrease from $94.0 million in the same quarter last year, and a net loss of $4.7 million compared to a net income of $7.5 million in the prior year. The decrease in revenues was attributed to a decline in comparable sales and key account orders, as well as the closure of underperforming stores. Despite these setbacks, Vera Bradley is making strategic adjustments to its product design and assortment, aiming to revitalize its market position by leveraging its brand’s emotional connection with consumers. The company is focused on product innovation, targeted marketing, and expanding its reach to new market segments, with the goal of driving sustainable growth and restoring its competitive advantage.

Vera Bradley’s Earnings Call: Transformation Amid Challenges

Vera Bradley’s recent earnings call paints a mixed picture of the company’s current state. While there are promising signs of strategic initiatives and successful marketing campaigns, the overall sentiment is tempered by significant revenue declines and financial losses. The company is evidently in a phase of transformation, striving to stabilize and grow amidst ongoing challenges.