Vera Bradley (VRA) AI Stock Analysis

• Market Cap: $72.40M
• Dividend Yield: N/A
• Average Volume (3M): 182.38K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.23
• 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: 160,560
• 30 Day Avg. Volume: 182,380
• 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: 2.05
• Enterprise Value/Revenue: 0.52
• Enterprise Value/Gross Profit: 1.14
• Enterprise Value/Ebitda: -7.37
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 0.05
• Revenue Forecast (FY): $267.57M

• Rating: 50 Neutral
• Price Target: $2.50 ▼(-13.19% Downside)
• Action: Reiterated Date: 02/21/26
• Date: Action: Reiterated 02/21/26

The score is held down primarily by poor financial performance (large losses, negative free cash flow, and weakening balance-sheet trends). Technicals are supportive with the stock trading above key moving averages, while the earnings call points to incremental stabilization and better inventory control but still highlights ongoing losses and channel weakness; valuation provides limited support given negative earnings and no stated dividend.

Positive Factors

Inventory Management

A 24.3% reduction in inventory materially lowers markdown and carrying-cost risk and improves working-capital dynamics. Over the next several months, leaner inventory supports margin recovery, reduces cash tied up in stock, and provides flexibility to right-size assortment under Project Sunshine.

Direct-Channel Recovery

Sequential improvement in the direct channel and positive comparable channel sales indicate the DTC model and product-led initiatives are beginning to stabilize demand. A stronger direct channel preserves higher margin sales, improves customer data capture, and supports durable revenue base as product momentum continues.

Underlying Gross Margin

A mid-40% gross margin signals sustained brand pricing power and favorable product economics. If operating expenses are disciplined, this structural margin provides a credible path to profitability once revenue trends stabilize and supports recovery without relying solely on heavy promotional activity.

Negative Factors

Profitability Deterioration

A roughly -34% net margin reflects persistent operating losses that erode capital and limit reinvestment. Continued negative profitability threatens shareholder value and makes execution of strategic initiatives more difficult, increasing the risk that turnaround plans will need external funding.

Negative Cash Generation

Negative operating and free cash flow mean the business is consuming cash, reducing financial flexibility. Over a multi-month horizon, this increases dependency on external financing or asset actions, which can constrain marketing, inventory investment, or outlet expansion needed to execute the transformation.

Worsening Leverage & Equity

Rising leverage and a shrinking equity base reduce the company's ability to absorb shocks and raise the cost of capital. Deteriorating balance-sheet metrics limit strategic optionality, increase refinancing risk, and may force management to prioritize liquidity over growth initiatives during the turnaround.

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

Financial fundamentals are weak: TTM shows deeply negative profitability (net margin about -34%) with contracting revenue, and both operating cash flow and free cash flow are negative. Balance sheet leverage is still moderate with positive equity, but rising debt-to-equity and a shrinking equity base signal deteriorating financial flexibility.

Income Statement

TTM (Trailing-Twelve-Months) results show a sharp deterioration in profitability, with the company posting a large net loss (net margin about -34%) and negative operating profit. Revenue has also continued to contract (down ~3% TTM), extending a multi-year pattern of declining sales versus the 2022 peak. While gross margin remains relatively solid in the mid-40% range TTM, it has compressed from prior years and is not currently sufficient to cover operating costs, keeping earnings deeply negative.

Balance Sheet

Leverage is moderate, with debt at roughly 0.67x equity in TTM (up from ~0.31x in 2024), reflecting a weaker equity base. Total equity has fallen meaningfully from 2024 to TTM, and return on equity is deeply negative in TTM, signaling that recent losses are eroding shareholder value. Offsetting this, the company still maintains positive equity and a debt load that is not extreme for the category, but the direction of fundamentals is weakening.

Cash Flow

Cash generation is a key weakness: TTM operating cash flow and free cash flow are both negative, and free cash flow has worsened materially versus the prior annual period. While free cash flow is higher than net income in TTM (helped by non-cash charges/working-capital moves), the business is still consuming cash rather than producing it, reducing financial flexibility if losses persist.

Breakdown	TTM	Jan 2025	Jan 2024	Jan 2023	Jan 2022	Jan 2021
Income Statement
Total Revenue	284.73M	371.97M	470.79M	499.96M	540.45M	468.27M
Gross Profit	129.41M	186.84M	256.41M	238.94M	287.94M	265.52M
EBITDA	-20.08M	-3.22M	47.78M	9.48M	59.82M	56.69M
Net Income	-97.47M	-62.19M	7.84M	-59.73M	17.84M	8.68M
Balance Sheet
Total Assets	243.68M	306.69M	380.79M	404.50M	517.55M	513.79M
Cash, Cash Equivalents and Short-Term Investments	10.73M	30.37M	77.30M	46.59M	88.44M	65.47M
Total Debt	86.41M	89.64M	81.00M	94.38M	99.56M	113.86M
Total Liabilities	115.62M	127.73M	120.86M	142.41M	159.13M	169.07M
Stockholders Equity	128.06M	178.96M	259.93M	251.38M	327.44M	314.91M
Cash Flow
Free Cash Flow	-13.03M	-24.48M	44.22M	-21.66M	34.37M	14.96M
Operating Cash Flow	-5.65M	-14.10M	47.99M	-13.42M	39.86M	20.70M
Investing Cash Flow	-6.35M	-10.37M	-13.77M	-8.24M	-4.15M	17.68M
Financing Cash Flow	9.14M	-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 2.69, above the 50-day MA of 2.65, and above the 200-day MA of 2.32, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 50.16 is Neutral, neither overbought nor oversold. The STOCH value of 46.12 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	$326.35M	9.84	8.67%	2.08%	4.13%	53.56%
WEYS	74 Outperform	$305.07M	12.56	9.57%	9.66%	-3.64%	-16.12%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
WWW	61 Neutral	$1.36B	11.34	26.62%	2.28%	3.61%	―
SHOO	56 Neutral	$2.45B	66.08	5.21%	1.97%	6.26%	-66.51%
VRA	50 Neutral	$72.40M	-1.33	-65.69%	―	-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.