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Vera Bradley (VRA)
NASDAQ:VRA

Vera Bradley (VRA) AI Stock Analysis

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Vera Bradley

(NASDAQ:VRA)

Rating:44Neutral
Price Target:
$2.00
▼(-16.32%Downside)
Vera Bradley's stock score is primarily impacted by its poor financial performance, as demonstrated by declining revenues, profitability, and cash flows. Technical analysis shows a bearish trend, and the company's valuation is unattractive due to negative earnings. Despite some strategic initiatives, the recent earnings call highlighted significant challenges, including revenue declines and leadership uncertainties.

Vera Bradley (VRA) vs. SPDR S&P 500 ETF (SPY)

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 makes money through a multi-channel revenue model that includes sales from its retail stores, e-commerce website, and wholesale distribution. The company's primary revenue streams are derived from the sale of its signature products, including handbags, travel items, and accessories, which are characterized by unique patterns and designs. Additionally, Vera Bradley generates income through licensing agreements and collaborations with other brands, which help extend its product offerings and market reach. The company's ability to maintain strong brand loyalty and engage with consumers through strategic marketing initiatives and seasonal collections also contributes significantly to its earnings.

Vera Bradley Earnings Call Summary

Earnings Call Date:Jun 11, 2025
(Q1-2026)
|
% Change Since: 1.70%|
Next Earnings Date:Aug 27, 2025
Earnings Call Sentiment Negative
The earnings call highlighted strategic initiatives and positive shifts in customer demographics, but was overshadowed by significant revenue declines, increased net losses, and uncertainties leading to the suspension of forward guidance.
Q1-2026 Updates
Positive Updates
Strategic Transformation Initiatives
Vera Bradley's strategic initiative to transform its business model and brand positioning is improving, with successful diversification of wholesale accounts and new partnerships with Costco, Urban Outfitters, Target, and Anthropologie.
Customer File Shift
Recently acquired new customers now comprise 45% of the active 12-month file, compared to 30% last year, indicating a positive shift in customer demographics.
Positive Performance on Target Marketplace
The performance on Target marketplace was a standout, leading to further discussions on maximizing the partnership.
Successful Product Launches
Introduction of new product lines such as new baby bag collection and luggage program, alongside relaunches of past favorites like the Glenna Satchel bag, showed positive customer reception.
Negative Updates
Decline in Revenues
Consolidated revenues fell to $51.7 million from $67.9 million in the previous year, marking a significant decline.
Direct and Indirect Segment Performance
The Vera Bradley Direct segment revenues decreased by 23.6%, and the Indirect segment revenues declined by 25.6% from the previous year.
Increased Net Loss
Net loss from continuing operations increased to $10 million or $0.36 per diluted share, from $6.6 million or $0.22 per diluted share last year.
Gross Margin Decline
Non-GAAP first quarter gross margin fell to 47.5% of net revenues, down from 51.3% in the prior year, primarily due to channel shifts and increased outbound freight costs.
Suspension of Forward Guidance
Due to executive and board leadership changes and uncertainties in the consumer environment, the company suspended its prior year guidance and is not providing any forward-looking statements.
Company Guidance
During the Vera Bradley First Quarter Fiscal 2026 Earnings Conference Call, several key metrics and strategic initiatives were discussed. The company's first quarter revenues totaled $51.7 million, a decrease from $67.9 million in the previous year, with the Direct segment revenues at $43.1 million and Indirect segment revenues at $8.6 million. The company reported a non-GAAP net loss of $10 million or $0.36 per diluted share, compared to a loss of $6.6 million or $0.22 per share last year. Gross margin was 47.5% of net revenues, down from 51.3% the prior year, due to channel shifts and increased outbound freight costs. SG&A expenses were $38.3 million or 74.2% of net revenues. The company highlighted its focus on operational transformation and strategic partnerships, including new relationships with Costco and Urban Outfitters Marketplace, and a successful partnership with Target Marketplace. Despite challenges, the company is not providing forward guidance due to executive changes and uncertainties in the consumer environment.

Vera Bradley Financial Statement Overview

Summary
Vera Bradley is facing financial challenges with declining revenues, profitability, and cash flows. The balance sheet remains stable but is impacted by recent losses, leading to reduced equity returns. Operational inefficiencies and cash flow management need improvement to stabilize financial health.
Income Statement
45
Neutral
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
50
Neutral
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
40
Negative
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 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income StatementTotal Revenue
371.97M470.79M499.96M540.45M468.27M
Gross Profit
186.84M256.41M238.94M287.94M265.52M
EBIT
-42.36M15.53M-25.61M26.91M13.06M
EBITDA
-10.94M47.78M1.49M59.82M56.69M
Net Income Common Stockholders
-62.19M7.84M-79.38M17.84M8.68M
Balance SheetCash, Cash Equivalents and Short-Term Investments
30.37M77.30M46.59M88.44M65.47M
Total Assets
306.69M380.79M404.50M521.86M513.79M
Total Debt
89.64M81.00M94.38M99.56M113.86M
Net Debt
59.28M3.70M47.78M11.12M49.68M
Total Liabilities
127.73M120.86M142.41M163.44M169.07M
Stockholders Equity
178.96M259.93M251.38M327.44M314.91M
Cash FlowFree Cash Flow
-24.48M44.22M-21.66M34.37M14.96M
Operating Cash Flow
-14.10M47.99M-13.42M39.86M20.70M
Investing Cash Flow
-10.37M-13.77M-8.24M-4.15M17.68M
Financing Cash Flow
-22.52M-3.55M-20.11M-11.41M-24.15M

Vera Bradley Technical Analysis

Technical Analysis Sentiment
Positive
Last Price2.39
Price Trends
50DMA
2.03
Positive
100DMA
2.53
Negative
200DMA
3.72
Negative
Market Momentum
MACD
0.01
Positive
RSI
56.84
Neutral
STOCH
25.32
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 2.39 is above the 20-day moving average (MA) of 2.11, above the 50-day MA of 2.03, and below the 200-day MA of 3.72, indicating a neutral trend. The MACD of 0.01 indicates Positive momentum. The RSI at 56.84 is Neutral, neither overbought nor oversold. The STOCH value of 25.32 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
62
Neutral
$6.82B11.052.80%4.32%2.67%-24.92%
47
Neutral
$19.32M-179.00%-11.33%-183.48%
VRVRA
44
Neutral
$49.72M-36.91%-24.95%-2349.32%
44
Neutral
$34.67M-47.54%-8.79%-15.17%
42
Neutral
$68.77M-27.53%-4.21%-292.04%
42
Neutral
$71.33M-51.93%-16.31%32.30%
40
Underperform
$88.23M-521.67%-12.15%75.86%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
VRA
Vera Bradley
2.39
-3.61
-60.17%
FOSL
Fossil Group
1.36
-0.08
-5.56%
PLCE
Children's Place
4.00
-3.47
-46.45%
TLYS
Tilly's
1.22
-4.09
-77.02%
DLTH
Duluth Holdings
1.86
-1.99
-51.69%
LVLU
Lulu's Fashion Lounge Holdings
0.45
-1.35
-75.00%

Vera Bradley Corporate Events

Executive/Board ChangesBusiness Operations and Strategy
Vera Bradley Announces Leadership Changes Amid Transformation
Neutral
Jun 11, 2025

On June 11, 2025, Vera Bradley announced significant leadership changes, with CEO Jackie Ardrey stepping down and Ian Bickley assuming the role of Executive Chairman and interim CEO. The company also appointed Martin Layding as the new CFO, succeeding Michael Schwindle. These changes are part of Vera Bradley’s ongoing transformation strategy, which includes the establishment of a new Strategy and Transformation Committee to guide future growth initiatives.

Executive/Board ChangesShareholder Meetings
Vera Bradley Elects Directors at Annual Meeting
Neutral
Jun 10, 2025

Vera Bradley held its 2025 Annual Meeting of Shareholders on June 5, 2025, where shareholders elected seven directors to the Board for a one-year term, ratified Deloitte & Touche LLP as the independent accounting firm for the fiscal year ending January 31, 2026, and approved the compensation of the company’s executive officers on an advisory basis. These decisions reflect the company’s ongoing governance and operational strategies, impacting its leadership structure and financial oversight, which are crucial for maintaining stakeholder confidence.

Executive/Board ChangesShareholder Meetings
Vera Bradley Board Member Frances Philip Steps Down
Neutral
Apr 18, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.