Vera Bradley (VRA)
NASDAQ:VRA
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Vera Bradley
(NASDAQ:VRA)
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Rating:55Neutral
Price Target:
$3.00
▲(4.17% Upside)
Action:ReiteratedDate:03/14/26
The score is held back primarily by weak financial performance (shrinking revenue, losses, and reduced equity) despite some recent cash-flow improvement. Technicals are a notable positive with the stock trading above major moving averages and positive momentum, while valuation remains challenged due to a negative P/E. The earnings call supports a cautious improvement narrative, but guidance still points to ongoing losses and execution risk.
Positive Factors
Healthy Gross Margins
Sustained product-level margins near ~47–48% indicate the brand retains pricing power and product profitability despite top-line pressure. This margin cushion helps absorb SG&A reduction efforts and supports path to operating leverage as revenue stabilizes over the next 2–6 months.
Negative Factors
Multi-Year Revenue Decline
A near-50% decline in revenue over a few years signals structural demand erosion or lost distribution scale. Restoring top-line requires sustained DTC stabilization and wholesale rebuild; if revenue recovery lags, fixed-cost absorption and long-term profitability remain challenged.
Read all positive and negative factors
Positive Factors
Negative Factors
Healthy Gross Margins
Sustained product-level margins near ~47–48% indicate the brand retains pricing power and product profitability despite top-line pressure. This margin cushion helps absorb SG&A reduction efforts and supports path to operating leverage as revenue stabilizes over the next 2–6 months.
Read all positive factors
Vera Bradley (VRA) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$108.51M
Dividend YieldN/A
Average Volume (3M)445.81K
Price to Earnings (P/E)―
Beta (1Y)1.19
Revenue Growth-29.74%
EPS Growth-405.24%
CountryUS
Employees1,725
SectorConsumer Cyclical
Sector Strength84
IndustryApparel - Footwear & Accessories
Share Statistics
EPS (TTM)0.09
Shares Outstanding27,965,338
10 Day Avg. Volume314,512
30 Day Avg. Volume445,813
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 Cap1.48
Enterprise Value/Revenue0.60
Enterprise Value/Gross Profit1.28
Enterprise Value/Ebitda-42.33
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.05
Revenue Forecast (FY)$268.75M
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 Indirec...
How the Company Makes Money
Vera Bradley makes money primarily by selling branded accessories and related merchandise through two main revenue channels: direct-to-consumer (DTC) and wholesale. (1) Direct-to-consumer revenue is generated through sales on the company’s e-comme...
Vera Bradley Key Performance Indicators (KPIs)
Vera Bradley Earnings Call Summary
Earnings Call Date:Mar 12, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Jun 10, 2026
Earnings Call Sentiment Positive
The call conveyed a constructive and optimistic tone: management highlighted meaningful operational progress (Q4 profitability, gross margin expansion, $17M operating cash flow, substantial SG&A reductions, inventory declines and product/marketing momentum) while acknowledging remaining challenges such as modest year-over-year revenue declines, inventory overhang from prior initiatives, low inventory turns and a still-negative full-year cash flow. Management provided FY'27 revenue guidance and targets for improved rates and operating loss reduction, but emphasized that transformation work and execution risk remain over the next 6–12 months.Positive Updates
Return to Quarterly Profitability
Q4 net income of $2.5 million and EPS of $0.09, a positive year-over-year swing of $0.28 from a prior-year loss of $0.19 per share; Q4 operating income of $3.6 million (4.2% of net revenues) versus an operating loss of $7.3 million in the prior-year quarter.
Negative Updates
Modest Revenue Decline and Direct Channel Pressure
Consolidated revenues fell 1.7% year-over-year to $84.9 million in Q4; Direct channel revenue declined 2.6% year-over-year and comparable sales declined 0.7% (management noted comps were essentially flat after adjusting for a late January winter storm impact).
Read all updates
Q4-2026 Updates
Positive
Negative
Return to Quarterly Profitability
Q4 net income of $2.5 million and EPS of $0.09, a positive year-over-year swing of $0.28 from a prior-year loss of $0.19 per share; Q4 operating income of $3.6 million (4.2% of net revenues) versus an operating loss of $7.3 million in the prior-year quarter.
Read all positive updates
Company Guidance
Management guided fiscal 2027 sales of $255–$270 million and said it expects year‑over‑year rate improvement in both gross profit and SG&A, targeting an operating loss improvement of 40%+ versus an adjusted FY2026 operating loss of $21.7 million (implying an operating loss of roughly $13 million or better); they also noted they will forgo the Q1 annual Outlook sale to prioritize inventory and the customer experience, will continue stabilizing the Direct business and rebuilding Wholesale, and will place less emphasis on liquidation channels. For context underpinning the guidance, management cited Q4 consolidated revenue of $84.9 million, Q4 net income of $2.5 million (EPS $0.09), Q4 operating cash flow of $17 million, year‑end cash of $18.5 million, FY26 full‑year cash flow improved to negative $11.9 million (from negative $46.9M), inventory down ~17% to $76.0 million (~22% decline ex‑tariffs) and inventory turns of 1.6 (up from 1.5).Vera Bradley Financial Statement Overview
Summary
Income Statement
24
Negative
Balance Sheet
46
Neutral
Cash Flow
42
Neutral
| Breakdown | Jan 2026 | Jan 2025 | Jan 2024 | Jan 2023 | Jan 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 269.65M | 371.97M | 470.79M | 499.96M | 540.45M |
| Gross Profit | 125.04M | 186.84M | 256.41M | 238.94M | 287.94M |
| EBITDA | 646.00K | -3.22M | 47.78M | 9.48M | 59.82M |
| Net Income | -47.84M | -62.19M | 7.84M | -59.73M | 17.84M |
Balance Sheet | |||||
| Total Assets | 234.00M | 306.69M | 380.79M | 404.50M | 517.55M |
| Cash, Cash Equivalents and Short-Term Investments | 18.51M | 30.37M | 77.30M | 46.59M | 88.44M |
| Total Debt | 70.53M | 89.64M | 81.00M | 94.38M | 99.56M |
| Total Liabilities | 102.37M | 127.73M | 120.86M | 142.41M | 159.13M |
| Stockholders Equity | 131.64M | 178.96M | 259.93M | 251.38M | 327.44M |
Cash Flow | |||||
| Free Cash Flow | 10.07M | -24.48M | 44.22M | -21.66M | 34.37M |
| Operating Cash Flow | 13.37M | -14.10M | 47.99M | -13.42M | 39.86M |
| Investing Cash Flow | -1.54M | -10.37M | -13.77M | -8.24M | -4.15M |
| Financing Cash Flow | -23.57M | -22.52M | -3.55M | -20.11M | -11.41M |
Vera Bradley Technical Analysis
Positive
2.88
Price Trends
2.98
Positive
2.75
Positive
2.46
Positive
Market Momentum
0.21
Negative
67.03
Neutral
85.19
Negative
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 below the 20-day moving average (MA) of 3.45, below the 50-day MA of 2.98, and above the 200-day MA of 2.46, indicating a bullish trend. The MACD of 0.21 indicates Negative momentum. The RSI at 67.03 is Neutral, neither overbought nor oversold. The STOCH value of 85.19 is Negative, 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 39 risk factors in its most recent earnings report. Vera Bradley reported the most risks in the "Ability to Sell" 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 |
|---|---|---|---|---|---|---|---|
74 Outperform | $330.08M | 12.56 | 9.35% | 9.66% | -3.64% | -16.12% | |
69 Neutral | $324.90M | 9.84 | 9.15% | 2.08% | 4.13% | 53.56% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
61 Neutral | $1.40B | 15.53 | 26.62% | 2.28% | 3.61% | ― | |
56 Neutral | $2.77B | 66.08 | 5.21% | 1.97% | 6.26% | -66.51% | |
55 Neutral | $108.51M | -1.40 | -35.03% | ― | -29.74% | -405.24% |
* Consumer Cyclical Sector Average
VRA
Vera Bradley
3.88
1.78
84.76%
RCKY
Rocky Brands
43.11
30.35
237.72%
SHOO
Steven Madden
37.96
17.69
87.31%
WEYS
Weyco Group
34.63
7.57
27.97%
WWW
Wolverine World Wide
16.99
6.17
57.01%
Vera Bradley Corporate Events
Business Operations and StrategyExecutive/Board Changes
Vera Bradley Names Ian Bickley CEO and Chairman
Positive
Mar 13, 2026
On March 12, 2026, Vera Bradley, Inc. named Ian Bickley as Chief Executive Officer and Chairman of the Board, formalizing his transition from Executive Chair and Interim CEO, roles he has held since June 2025. Bickley, a veteran retail executive w...
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.