Vera Bradley (VRA) AI Stock Analysis

• Market Cap: $93.09M
• Dividend Yield: N/A
• Average Volume (3M): 382.42K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.08
• 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): 0.09
• Shares Outstanding: 27,955,023
• 10 Day Avg. Volume: 855,569
• 30 Day Avg. Volume: 382,416
• PEG Ratio: 0.07
• Price to Book (P/B): 0.51
• Price to Sales (P/S): 0.25
• P/FCF Ratio: 6.66
• Enterprise Value/Market Cap: 1.56
• Enterprise Value/Revenue: 0.54
• Enterprise Value/Gross Profit: 1.16
• Enterprise Value/Ebitda: -28.39
• 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): $268.75M

• Rating: 55 Neutral
• Price Target: $3.50 ▲(21.53% Upside)
• Action: Reiterated Date: 03/14/26
• Date: Action: Reiterated 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

Gross margin resilience

Sustained product-level profitability indicates Vera Bradley retains pricing power and healthy unit economics despite top-line pressure. A mid-40s gross margin gives room to cover fixed costs and supports operating leverage as volumes stabilize, improving the chance of durable margin recovery.

Improving cash generation and reduced leverage

Recent positive quarterly OCF and ABL payoff materially improve near-term liquidity and financial flexibility. A return to positive TTM free cash flow and manageable debt-to-equity (~0.54) reduce refinancing risk and give management runway to execute transformation initiatives over the next 6–12 months.

Experienced retail leadership appointed

A permanent CEO with deep retail and brand turnaround experience strengthens execution capability for a multi‑year recovery. Leadership continuity and vested incentives align management to long-term product, wholesale and DTC strategy execution and can accelerate inventory and margin fixes.

Negative Factors

Sustained multi-year revenue decline

A >40% decline in revenue over a multi-year period signals structural demand erosion or lost distribution, increasing fixed-cost burden per unit. Reversing such declines requires durable improvements in assortment, marketing ROI and wholesale relationships, which are execution-intensive and time-consuming.

Eroding equity and recurring losses

Material shrinkage in equity and repeated net losses weaken the firm’s capital buffer and constrain strategic optionality. Continued losses could limit investments in product and distribution, raise cost of capital, and make the company more vulnerable to adverse shocks over the medium term.

Low inventory turns and execution risk

Low inventory turnover and legacy product overhang depress cash conversion and require clearance actions that can compress margins. Management’s transformation and Outlet 2.0 pilots add execution risk: benefits depend on scaled, sustained improvements in assortment and responsiveness across channels.

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 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-commerce sites and in its owned retail locations (e.g., full-line stores and outlet stores), where the company captures the full retail selling price and manages merchandising, promotions, and customer engagement directly. (2) Wholesale revenue is generated by selling products to third-party retailers who then sell to end consumers; in this model Vera Bradley recognizes revenue at the wholesale selling price and relies on partners’ retail reach for distribution. Across both channels, revenue is driven by unit volume and product mix (e.g., handbags versus travel or small accessories), pricing, and promotional activity. Seasonal collections, new pattern introductions, and inventory management can materially affect sales and profitability. Information on specific material partnerships beyond wholesale customers is null.

Vera Bradley Financial Statement Overview

Summary

Financial quality is weak due to multi-year revenue contraction and recent net losses with negative operating margins. Offsetting this somewhat: gross margin remains relatively solid (~46% TTM), leverage appears manageable (debt-to-equity ~0.54), and TTM cash flow is back to positive (OCF ~$13.4M; FCF ~$10.1M), though consistency is volatile and equity has materially declined.

Income Statement

Results have deteriorated meaningfully: revenue declined from $540.5M (2022) to $372.0M (2025) and further to $269.7M in TTM (Trailing-Twelve-Months). Profitability has also weakened, with net losses in 2023, 2025, and TTM (Trailing-Twelve-Months) and operating margins remaining negative in the most recent periods. A partial positive is that gross margin remains relatively solid (about 46% in TTM), suggesting product-level profitability is intact, but operating cost pressure and/or demand softness are overwhelming it.

Balance Sheet

Leverage looks manageable on paper, with debt-to-equity around 0.54 in TTM (Trailing-Twelve-Months) and total debt of ~$70.5M. However, equity has fallen notably (from ~$327.4M in 2022 to ~$131.6M in TTM), and returns on equity are deeply negative in the latest periods, reflecting sustained losses and a shrinking capital base. The balance sheet is not highly levered, but continued losses could erode flexibility.

Cash Flow

Cash generation has been volatile. After strong positive cash flow in 2022 and especially 2024 (operating cash flow ~$48.0M; free cash flow ~$44.2M), 2025 turned negative on both measures. TTM (Trailing-Twelve-Months) has improved back to positive (operating cash flow ~$13.4M; free cash flow ~$10.1M), but free cash flow is sharply lower versus the prior year and overall consistency is weak. The recent positive free cash flow is a constructive sign, but durability remains a key question given ongoing net losses.

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	-5.11M	-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

• Technical Analysis Sentiment: Positive
• Last Price: 2.88
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 below the 20-day moving average (MA) of 2.92, above the 50-day MA of 2.78, and above the 200-day MA of 2.37, indicating a bullish trend. The MACD of 0.21 indicates Negative momentum. The RSI at 59.96 is Neutral, neither overbought nor oversold. The STOCH value of 78.96 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
WEYS	74 Outperform	$303.01M	12.56	9.35%	9.66%	-3.64%	-16.12%
RCKY	69 Neutral	$294.07M	9.84	8.67%	2.08%	4.13%	53.56%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
WWW	61 Neutral	$1.29B	15.53	26.62%	2.28%	3.61%	―
SHOO	56 Neutral	$2.32B	66.08	5.21%	1.97%	6.26%	-66.51%
VRA	55 Neutral	$93.09M	-1.40	-35.03%	―	-29.74%	-405.24%

Vera Bradley Corporate Events

Vera Bradley Names Ian Bickley CEO and Chairman

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 with leadership experience at Coach, The Body Shop, Crocs, and Brilliant Earth, signed an employment agreement running through the fiscal year ending around February 3, 2029, with a $750,000 base salary, significant bonus potential, and equity awards, including a three-year vesting sign-on grant.

The agreement outlines substantial severance, bonus, and accelerated equity vesting protections if he is terminated without cause or departs for good reason, with enhanced payouts and full vesting in the event of a qualifying change in control, underscoring the board’s commitment to leadership stability during any strategic shifts. Effective immediately, Chief Financial Officer Martin Layding has also been appointed Chief Operating Officer with a salary increase, while Chief Administrative & Legal Officer and Corporate Secretary Mark Dely is scheduled to leave the company on June 27, 2026, with severance governed by the firm’s executive severance plan.

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.