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Vera Bradley
(NASDAQ:VRA)
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Rating:55Neutral
Price Target:
$4.00
▲(8.40% Upside)
Action:Reiterated
Date:07/25/26
The score is held back primarily by weak and inconsistent profitability (negative TTM earnings and margins) despite improving cash generation and manageable leverage. Technicals are broadly neutral with modestly constructive longer-term trend positioning, while valuation is constrained by a negative P/E. The latest earnings call added support via raised operating-loss improvement targets and tangible margin/cost progress, but execution and sustainability (including wholesale volatility and uneven quarterly results) remain key risks.
Positive Factors
Cash generation
Sustained positive operating and free cash flow over the trailing twelve months provides durable liquidity to fund inventory resets, outlet rollouts and working-capital needs without immediate capital raises. Strong cash conversion reduces refinancing risk and supports execution of multi-quarter turnaround initiatives.
Negative Factors
Ongoing unprofitability
Despite operational gains, the company remains loss-making on a TTM basis, eroding returns and limiting reinvestment capacity. Persistent negative margins strain equity returns and require continued margin improvement and consistent top-line growth over multiple quarters to meaningfully restore profitability and ROE.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation
Sustained positive operating and free cash flow over the trailing twelve months provides durable liquidity to fund inventory resets, outlet rollouts and working-capital needs without immediate capital raises. Strong cash conversion reduces refinancing risk and supports execution of multi-quarter turnaround initiatives.
Read all positive factors
Vera Bradley Key Performance Indicators (KPIs)
Any
Operating Income by Segment
Shows profit or loss from core operations for each business segment, such as company stores, e-commerce, wholesale, and licensing. Reveals which channels generate healthy margins versus those that require heavy investment, helping you judge whether revenue growth is translating into sustainable earnings or being absorbed by costs.
Shows profit or loss from core operations for each business segment, such as company stores, e-commerce, wholesale, and licensing. Reveals which channels generate healthy margins versus those that require heavy investment, helping you judge whether revenue growth is translating into sustainable earnings or being absorbed by costs.
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The Fly
The FlyVera Bradley (VRA) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$94.98M
Dividend YieldN/A
Average Volume (3M)245.36K
Price to Earnings (P/E)―
Beta (1Y)1.23
Revenue Growth-20.21%
EPS Growth73.73%
CountryUS
Employees1,360
SectorConsumer Cyclical
Sector Strength84
IndustryApparel - Footwear & Accessories
Share Statistics
EPS (TTM)-0.69
Shares Outstanding28,438,251
10 Day Avg. Volume100,885
30 Day Avg. Volume245,356
Financial Highlights & Ratios
PEG Ratio0.07
Price to Book (P/B)0.51
Price to Sales (P/S)0.25
P/FCF Ratio6.66
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)-0.34
Revenue Forecast (FY)$263.32M
Vera Bradley Business Overview & Revenue Model
Company Description
Vera Bradley, Inc., including its affiliated companies, specializes in the design, manufacturing, and sale of a diverse range of women's products, such as handbags, travel gear, various fashion and home accessories, and gifts. The company's operat...
How the Company Makes Money
Vera Bradley makes money primarily by selling branded accessories and related lifestyle products through two main routes: (1) direct-to-consumer (DTC) sales and (2) wholesale sales. In DTC, the company generates revenue by selling products directl...
Vera Bradley Earnings Call Summary
Earnings Call Date:Jun 11, 2026
(Q1-2027)
| % Change Since: |
Next Earnings Date:Sep 02, 2026
Earnings Call Sentiment Positive
The call communicated clear and measurable operational progress across revenue, gross margin (up 430 bps), SG&A reduction ($5.6M) and inventory management (down 26%), plus product and marketing momentum and digital/wholesale initiatives. However, the company remains unprofitable this quarter, with negative cash flow and exposure to macro headwinds and some one-off wholesale collaboration effects. On balance, the improvements are substantive and recurring levers (margin expansion, cost discipline, inventory control, product-market fit) appear to be driving a sustainable recovery trajectory.Positive Updates
Return to Revenue Growth
Consolidated revenues rose 7.8% year-over-year to $55.7M from $51.7M, marking the company's first quarter of overall revenue growth since Q4 FY2022.
Negative Updates
Continued Negative Profitability
Despite meaningful improvement, the company remains unprofitable for the quarter with a non-GAAP operating loss of $3.3M and a net loss of $2.5M; quarter-to-quarter improvement is expected to be uneven.
Read all updates
Q1-2027 Updates
Positive
Negative
Return to Revenue Growth
Consolidated revenues rose 7.8% year-over-year to $55.7M from $51.7M, marking the company's first quarter of overall revenue growth since Q4 FY2022.
Read all positive updates
Company Guidance
The company guided fiscal 2027 net sales of $255 million–$270 million and now expects at least a 50% year‑over‑year improvement in non‑GAAP operating loss (raised from a prior ~40% target), driven by anticipated full‑year gross‑margin gains and continued cost discipline, while cautioning quarter‑to‑quarter improvement will be uneven; management also targets inventory in the ~$60M–$75M range, plans to open four new outlet stores, move to 100% assortment influence for back‑to‑school and beyond, de‑emphasize liquidation channels, and expects Section 301 tariff pressure to ease toward roughly 10%–12.5%.Vera Bradley Financial Statement Overview
Summary
Income Statement
28
Negative
Balance Sheet
52
Neutral
Cash Flow
63
Positive
| Breakdown | TTM | Jan 2026 | Jan 2025 | Jan 2024 | Jan 2023 | Jan 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 273.70M | 269.65M | 371.97M | 470.79M | 499.96M | 540.45M |
| Gross Profit | 131.10M | 125.04M | 186.84M | 256.41M | 238.94M | 287.94M |
| EBITDA | 8.97M | 646.00K | -3.22M | 47.78M | 9.48M | 59.82M |
| Net Income | -19.20M | -47.84M | -62.19M | 7.84M | -59.73M | 17.84M |
Balance Sheet | ||||||
| Total Assets | 219.24M | 234.00M | 306.69M | 380.79M | 404.50M | 517.55M |
| Cash, Cash Equivalents and Short-Term Investments | 12.51M | 18.51M | 28.63M | 77.30M | 46.59M | 88.44M |
| Total Debt | 65.27M | 70.53M | 85.33M | 81.00M | 94.38M | 99.56M |
| Total Liabilities | 92.19M | 102.37M | 127.73M | 120.86M | 142.41M | 159.13M |
| Stockholders Equity | 127.05M | 131.64M | 178.96M | 259.93M | 251.38M | 327.44M |
Cash Flow | ||||||
| Free Cash Flow | 24.27M | 10.07M | -24.48M | 44.22M | -21.66M | 34.37M |
| Operating Cash Flow | 26.02M | 13.37M | -14.10M | 47.99M | -13.42M | 39.86M |
| Investing Cash Flow | -901.00K | -1.54M | -10.37M | -13.77M | -8.24M | -4.15M |
| Financing Cash Flow | -23.81M | -23.57M | -22.52M | -3.55M | -20.11M | -11.41M |
Vera Bradley Technical Analysis
Negative
3.69
Price Trends
3.65
Negative
3.66
Negative
3.13
Positive
Market Momentum
-0.10
Positive
41.41
Neutral
18.92
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 3.69 is above the 20-day moving average (MA) of 3.58, above the 50-day MA of 3.65, and above the 200-day MA of 3.13, indicating a neutral trend. The MACD of -0.10 indicates Positive momentum. The RSI at 41.41 is Neutral, neither overbought nor oversold. The STOCH value of 18.92 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 43 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $1.49B | 14.45 | 26.91% | 2.10% | 8.31% | 39.91% | |
64 Neutral | $3.53B | 23.61 | 16.05% | 1.96% | 18.33% | 56.39% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
55 Neutral | $94.98M | -4.96 | -14.57% | ― | -20.21% | 73.73% | |
49 Neutral | $1.77B | 12.38 | 88.57% | ― | -17.40% | ― | |
48 Neutral | $309.69M | -4.10 | -52.99% | ― | -11.35% | 36.29% | |
47 Neutral | $321.42M | 29.14 | 3.57% | 3.66% | -1.61% | ― |
* Consumer Cyclical Sector Average
VRA
Vera Bradley
3.40
1.41
70.85%
DBI
Designer Brands
6.12
2.93
91.73%
FOSL
Fossil Group
5.27
3.46
191.16%
CPRI
Capri Holdings
15.55
-6.48
-29.41%
SHOO
Steven Madden
47.70
20.97
78.48%
WWW
Wolverine World Wide
18.06
-9.91
-35.42%
Vera Bradley Corporate Events
Business Operations and StrategyExecutive/Board Changes
Vera Bradley Enhances Executive Severance and Retention Protections
Positive
Jul 24, 2026
On July 24, 2026, Vera Bradley entered into Executive Severance Plan Agreements with Chief Operating and Financial Officer Martin Layding and Chief Brand Officer Melinda Paraie, setting detailed benefits if either is terminated without cause or re...
Executive/Board ChangesShareholder Meetings
Vera Bradley Shareholders Approve Directors and Equity Plan
Neutral
Jun 9, 2026
At Vera Bradley’s 2026 Annual Meeting of Shareholders held on June 4, 2026, investors elected Ian Bickley, Ivan Brockman, Kristina Cashman, Robert J. Hall, Andrew Meslow, and Jessica Rodriguez to the board for one-year terms and ratified Del...
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.