Vera Bradley (VRA) AI Stock Analysis

• Market Cap: $76.88M
• Dividend Yield: N/A
• Average Volume (3M): 336.31K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.26
• Revenue Growth: -29.74%
• EPS Growth: -405.24%
• Country: US
• Employees: 1,725
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Footwear & Accessories
• EPS (TTM): -0.30
• Shares Outstanding: 27,955,023
• 10 Day Avg. Volume: 274,062
• 30 Day Avg. Volume: 336,312
• 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: 1.98
• Enterprise Value/Revenue: 0.52
• Enterprise Value/Gross Profit: 1.08
• Enterprise Value/Ebitda: -10.18
• 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: 46 Neutral
• Price Target: $3.00 ▲(4.17% Upside)

The score is held down primarily by deteriorating financial performance—declining revenue and margins alongside weak/negative cash flow. Technicals are moderately supportive with the stock above key moving averages, but momentum is mixed. The earnings call and recent leadership appointments add some turnaround optimism, yet losses, write-downs, and segment weakness keep the overall outlook restrained.

Positive Factors

Inventory reduction (working capital improvement)

A 24.3% YoY inventory reduction to $82.9M materially lowers working capital needs and markdown risk. Sustained lower inventory supports margin recovery and cash conversion over months, improving liquidity and giving management flexibility to reinvest in higher-return product initiatives.

Product innovation driving younger cohort penetration

Strong sell-through and >2x Gen Z penetration signal product-market fit with younger cohorts, a durable repositioning benefit. Winning younger customers can raise lifetime value, support channel diversification, and help revitalize brand relevance over 2–6 months and beyond if new assortments sustain demand.

Credit agreement amendments improve strategic flexibility

The credit amendments expand ability to monetize real estate, pursue sale-leaseback transactions and dispose of assets, and accept IP liens. This structural financing flexibility enhances liquidity options during transformation and reduces need for emergency capital, supporting execution of strategic turnaround plans.

Negative Factors

Declining revenue and margins

Ongoing revenue declines and negative operating margins weaken the company's earnings power and limit reinvestment capacity. Persistent margin erosion reduces buffer for pricing pressure or promotional activity, making sustained recovery reliant on meaningful structural improvements to product mix and distribution.

Weak cash generation and negative free cash flow

Negative operating cash flow and absent free cash flow constrain capital allocation, debt servicing, and inventory investment. Over a multi-month horizon this raises dependence on external financing or asset sales, reducing resilience to demand shocks and limiting the company’s ability to fund a sustained turnaround.

Material inventory write-downs indicating merchandising risk

A $5.9M write-down reflects prior assortment or forecasting failures and increases operating losses while eroding equity. Repeated write-downs signal structural merchandising and demand-planning deficiencies that can depress margins and cash flow over several quarters unless inventory and product strategies are materially improved.

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 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

Weak fundamentals overall: revenue and profitability are declining with negative EBIT/EBITDA margins, and cash generation is a major concern given negative operating cash flow dynamics and recently negative free cash flow. The balance sheet is somewhat steadier with manageable leverage, but equity and assets have been trending down.

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	292.96M	371.97M	470.79M	499.96M	540.45M	468.27M
Gross Profit	141.64M	186.84M	256.41M	238.94M	287.94M	265.52M
EBITDA	-14.99M	-3.22M	47.78M	9.48M	59.82M	56.69M
Net Income	-97.91M	-62.19M	7.84M	-59.73M	17.84M	8.68M
Balance Sheet
Total Assets	266.18M	306.69M	380.79M	404.50M	517.55M	513.79M
Cash, Cash Equivalents and Short-Term Investments	15.18M	30.37M	77.30M	46.59M	88.44M	65.47M
Total Debt	85.73M	89.64M	81.00M	94.38M	99.56M	113.86M
Total Liabilities	125.69M	127.73M	120.86M	142.41M	159.13M	169.07M
Stockholders Equity	140.49M	178.96M	259.93M	251.38M	327.44M	314.91M
Cash Flow
Free Cash Flow	-33.59M	-24.48M	44.22M	-21.66M	34.37M	14.96M
Operating Cash Flow	-24.25M	-14.10M	47.99M	-13.42M	39.86M	20.70M
Investing Cash Flow	-8.30M	-10.37M	-13.77M	-8.24M	-4.15M	17.68M
Financing Cash Flow	3.64M	-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: Positive
• 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 2.72, above the 50-day MA of 2.52, and above the 200-day MA of 2.24, indicating a bullish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 57.20 is Neutral, neither overbought nor oversold. The STOCH value of 73.84 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	$249.31M	12.08	8.67%	2.08%	4.13%	53.56%
WEYS	70 Outperform	$315.10M	12.59	9.57%	9.66%	-3.64%	-16.12%
SHOO	64 Neutral	$2.82B	53.62	6.68%	1.97%	6.26%	-66.51%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
WWW	58 Neutral	$1.49B	16.77	25.57%	2.28%	3.61%	―
VRA	46 Neutral	$76.88M	-0.93	-46.60%	―	-29.74%	-405.24%

Vera Bradley Corporate Events

Vera Bradley Increases Executive Chairman’s Compensation Package

On December 10, 2025, Vera Bradley, Inc. announced that its Board of Directors approved an increase in the compensation of Ian Bickley, the Executive Chairman, to $60,000 per month starting in December. Additionally, the Board approved a one-time bonus of $30,000 and a restricted stock unit grant valued at $900,000, which will vest over three years, contingent on Mr. Bickley’s continued membership on the Board.

The most recent analyst rating on (VRA) stock is a Hold with a $1.50 price target. To see the full list of analyst forecasts on Vera Bradley stock, see the VRA Stock Forecast page.

Vera Bradley Appoints Ivan Brockman to Board

On November 21, 2025, Vera Bradley announced the appointment of Ivan Brockman to its Board of Directors, effective November 17, 2025. Mr. Brockman, a seasoned investment banker with extensive experience in strategic advisory roles, is expected to bring valuable insights to the company during its strategic transformation. His appointment reflects Vera Bradley’s commitment to strengthening its leadership team and enhancing its strategic decision-making capabilities.

The most recent analyst rating on (VRA) stock is a Hold with a $3.00 price target. To see the full list of analyst forecasts on Vera Bradley stock, see the VRA Stock Forecast page.