Vera Bradley (VRA) AI Stock Analysis

• Market Cap: $54.44M
• Dividend Yield: N/A
• Average Volume (3M): 228.89K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.93
• Revenue Growth: -20.99%
• EPS Growth: -976.24%
• Country: US
• Employees: 1,725
• Sector: Consumer Cyclical
• Sector Strength: 63
• Industry: Apparel - Footwear & Accessories
• EPS (TTM): -2.22
• Shares Outstanding: 27,918,140
• 10 Day Avg. Volume: 246,074
• 30 Day Avg. Volume: 228,889
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 2.99
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 0.87
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Vera Bradley's overall stock score is primarily impacted by its weak financial performance and technical analysis indicators, both suggesting significant challenges. The valuation is concerning with a negative P/E ratio and no dividend. Although the earnings call highlighted some strategic initiatives and growth in key segments, these are overshadowed by current financial struggles and market conditions, resulting in a low overall score.

Vera Bradley Business Overview & Revenue Model

Company Description

Vera 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 Money

Vera 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.

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.

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.

Breakdown
Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
371.97M	470.79M	499.96M	540.45M	468.27M
	Gross Profit
186.84M	256.41M	238.94M	287.94M	265.52M
	EBIT
-42.36M	15.53M	-25.61M	26.91M	13.06M
	EBITDA
-3.22M	47.78M	1.49M	59.82M	56.69M
	Net Income Common Stockholders
-62.19M	7.84M	-79.38M	17.84M	8.68M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
30.37M	77.30M	46.59M	88.44M	65.47M
	Total Assets
306.69M	380.79M	404.50M	521.86M	513.79M
	Total Debt
89.64M	81.00M	94.38M	99.56M	113.86M
	Net Debt
59.28M	3.70M	47.78M	11.12M	49.68M
	Total Liabilities
127.73M	120.86M	142.41M	163.44M	169.07M
	Stockholders Equity
178.96M	259.93M	251.38M	327.44M	314.91M
Cash Flow		Free Cash Flow
-24.48M	44.22M	-21.66M	34.37M	14.96M
	Operating Cash Flow
-14.10M	47.99M	-13.42M	39.86M	20.70M
	Investing Cash Flow
-10.37M	-13.77M	-8.24M	-4.15M	17.68M
	Financing Cash Flow
-22.52M	-3.55M	-20.11M	-11.41M	-24.15M

Vera Bradley Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.90
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 1.9 is below the 20-day moving average (MA) of 1.99, below the 50-day MA of 2.43, and below the 200-day MA of 4.37, indicating a bearish trend. The MACD of -0.14 indicates Negative momentum. The RSI at 39.76 is Neutral, neither overbought nor oversold. The STOCH value of 54.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for VRA.

Vera Bradley Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$6.55B	11.72	3.07%	4.01%	2.66%	-21.27%
FOSL	46 Neutral	$56.83M	―	-50.98%	―	-18.93%	35.38%
DLTH	46 Neutral	$63.35M	―	-22.43%	―	-3.10%	-381.92%
LVLU	44 Neutral	$18.04M	―	-148.78%	―	-11.06%	-175.45%
TLYS	43 Neutral	$45.23M	―	-37.62%	―	-8.61%	-33.30%
VRA	41 Neutral	$54.44M	―	-28.34%	―	-20.99%	-976.24%
PLCE	40 Underperform	$86.68M	―	-521.67%	―	-13.49%	63.10%

Vera Bradley Corporate Events

Vera Bradley Board Member Frances Philip Steps Down

On April 18, 2025, Vera Bradley announced that Frances P. Philip, a long-time board member since 2011, will not stand for re-election at the upcoming 2025 Shareholder Meeting. Her decision is not due to any disagreements with the company. Philip has been a significant contributor to the board, serving as Lead Independent Director since 2022 and providing valuable insights from her extensive experience in product development and marketing. The company acknowledges her influential role and expresses gratitude for her dedicated service.

Spark’s Take on VRA Stock

According to Spark, TipRanks’ AI Analyst, VRA is a Neutral.

Vera Bradley’s overall stock score reflects its current financial and operational challenges. Declines in revenue and profitability, coupled with negative cash flow, weigh heavily on the score. The technical analysis suggests bearish momentum, further contributing to a lower score. Valuation metrics are unfavorable, with a negative P/E ratio and no dividend yield. The earnings call provides some optimism with strategic initiatives aimed at stabilization; however, these efforts are overshadowed by immediate financial pressures.

To see Spark’s full report on VRA stock, click here.

Vera Bradley Appoints Andrew Meslow to Board of Directors

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.