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1. Company Snapshot

1.a. 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.

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1.b. Last Insights on VRA

Here is a 90-word analysis of the negative drivers behind Vera Bradley's recent performance: Vera Bradley's Q3 loss of $0.27 per share, missing estimates, was driven by declining sales and high operating expenses. The company's financial condition remains strong with no debt and $89 million in liquidity, but sales continue to decline. Management missteps and failed strategic plans have contributed to the company's struggles. Additionally, activist investor Fund 1 Investments LLC, the largest shareholder, is pushing for strategic alternatives, highlighting the need for change. The company's appointment of Andrew Meslow, former CEO of Bath and Body Works, to the Board may bring fresh perspective, but near-term challenges persist.

1.c. Company Highlights

2. Vera Bradley's Q2 2026 Earnings: Navigating Challenges

Vera Bradley Inc. reported Q2 2026 revenue of $70.9 million, down 25% YoY, with a non-GAAP net loss of $0.02 per share, significantly better than the estimated loss of $0.15 per share. Gross margin stood at 49.9%, and SG&A expenses were reduced to 51.2% of revenue. The company's efforts to optimize SKU assortments and mitigate the $11 million annualized tariff impact are underway, with sourcing teams working closely with suppliers to adjust strategies.

Publication Date: Sep -23

📋 Highlights
  • Revenue Decline:: Q2 revenue fell 25% YoY to $70.9M, but sequential growth in comparable sales and e-commerce was noted.
  • Strategic Initiatives:: Five priorities include brand repositioning, omnichannel alignment, Outlet 2.0, operational efficiency, and organizational restructuring.
  • Financial Performance:: Non-GAAP net loss of $0.02/share; gross margin held steady at 49.9%, SG&A reduced to 51.2% of revenue.
  • Inventory Reduction:: Inventory dropped 13.2% to $96.7M, with $15.2M in cash reserves retained.
  • Product & Marketing:: Launched back-to-school collections, Disney/Peanuts collaborations, and a social-first campaign driving 23% new customer growth online.

Operational Discipline and Strategic Initiatives

The company is focused on enhancing operational discipline, which is driving sequential quarterly improvements. Vera Bradley is implementing five strategic initiatives: sharpening brand focus, expanding omnichannel capabilities, launching Outlet2.0, streamlining operations, and reorganizing to prioritize efficiency. These efforts include product innovation, such as back-to-school collections and Disney/Peanuts collaborations, as well as leveraging nostalgia-driven marketing that has boosted social media engagement.

Valuation and Growth Expectations

With a P/S Ratio of 0.19, the market has factored in significant challenges for Vera Bradley. Analysts estimate revenue growth at -31.2% for next year, indicating a continued tough environment. However, the company's efforts to reposition the brand and drive operational discipline may yield long-term benefits. The current valuation metrics, including a P/E Ratio of -0.58 and ROE of -56.7%, reflect the difficulties the company is facing.

Outlook and Conclusion

As Vera Bradley continues to navigate the challenging consumer environment, its focus on operational discipline and strategic initiatives is expected to drive progress. While the road ahead remains uncertain, the company's efforts to optimize its business and reposition the brand may ultimately lead to improved financial performance. Inventory reduction and ongoing CEO search efforts are also notable developments.

3. NewsRoom

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Vera Bradley, Inc. Announces Reporting Date for Third Quarter Fiscal Year 2026 Results

Nov -26

Source: globenewswire.com

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Vera Bradley Announces Appointment of Ivan Brockman to Its Board of Directors

Nov -21

Source: globenewswire.com

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VRA Investors Have Opportunity to Join Vera Bradley, Inc. Fraud Investigation with the Schall Law Firm

Nov -05

Source: globenewswire.com

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VRA Investors Have Opportunity to Join Vera Bradley, Inc. Fraud Investigation with the Schall Law Firm

Oct -29

Source: globenewswire.com

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Vera Bradley Announces Appointment of Melinda Paraie as Chief Brand Officer

Oct -29

Source: globenewswire.com

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VRA Investor News: If You Have Suffered Losses in Vera Bradley, Inc. (NASDAQ: VRA), You Are Encouraged to Contact The Rosen Law Firm About Your Rights

Oct -28

Source: globenewswire.com

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INVESTOR ALERT: Investigation of Vera Bradley, Inc. (VRA) Announced by Holzer & Holzer, LLC

Oct -28

Source: globenewswire.com

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Rosen Law Firm Encourages Vera Bradley, Inc. Investors to Inquire About Securities Class Action Investigation - VRA

Oct -28

Source: prnewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.77%)

6. Segments

Vera Bradley Direct

Expected Growth: 4.83%

Vera Bradley Direct's 4.83% growth is driven by increasing online presence, strategic marketing efforts, and expanding product offerings. The brand's strong e-commerce platform, loyalty program, and targeted promotions contribute to higher sales. Additionally, the company's focus on digital marketing, social media engagement, and influencer partnerships enhance brand awareness, attracting new customers and driving revenue growth.

Pure Vida

Expected Growth: 9.9%

Pure Vida's 9.9% growth is driven by increasing demand for stylish, functional, and affordable jewelry. Strong brand recognition, effective social media marketing, and strategic partnerships contribute to its success. Additionally, the brand's focus on empowering women and donating a portion of proceeds to charitable causes resonates with consumers, fostering loyalty and driving sales.

Vera Bradley Indirect

Expected Growth: 4.83%

Vera Bradley Indirect's 4.83% growth is driven by increasing online sales, expanded product offerings, and strategic partnerships. The brand's strong e-commerce platform and social media presence have enhanced customer engagement, while new product categories, such as pet accessories, have attracted a broader customer base.

7. Detailed Products

Bags

Vera Bradley offers a wide range of stylish and functional bags, including totes, backpacks, crossbody bags, and more, designed to fit various lifestyles and preferences.

Accessories

Vera Bradley's accessories collection includes wallets, phone cases, keychains, and more, designed to complement their iconic bags and add a touch of personality to any outfit.

Travel

Vera Bradley's travel collection features durable and stylish luggage, travel bags, and packing accessories designed to make traveling easier and more enjoyable.

Home and Campus

Vera Bradley's home and campus collection includes decorative items, storage solutions, and organizational tools designed to add a touch of personality to any room.

8. Vera Bradley, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Vera Bradley's products are moderately substitutable, as customers can opt for other brands or alternatives. However, the company's strong brand reputation and loyal customer base mitigate this threat.

Bargaining Power Of Customers

Vera Bradley's customers have relatively low bargaining power due to the company's strong brand reputation and loyal customer base. Customers are willing to pay a premium for the company's high-quality products.

Bargaining Power Of Suppliers

Vera Bradley's suppliers have moderate bargaining power due to the company's dependence on a few key suppliers. However, the company's strong relationships with suppliers and its ability to negotiate prices mitigate this threat.

Threat Of New Entrants

The threat of new entrants is low due to the high barriers to entry in the industry, including the need for significant capital investment and the difficulty of replicating Vera Bradley's strong brand reputation.

Intensity Of Rivalry

The intensity of rivalry in the industry is high due to the presence of several established competitors. Vera Bradley faces intense competition from other brands, which can lead to pricing pressure and decreased market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 23.76%
Debt Cost 3.95%
Equity Weight 76.24%
Equity Cost 13.34%
WACC 11.11%
Leverage 31.16%

11. Quality Control: Vera Bradley, Inc. passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Weyco

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Quality: 5.1

Yield: 4.0

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A-Score: 3.9/10

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Quality: 4.2

Yield: 4.0

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Vera Bradley

A-Score: 2.8/10

Value: 9.8

Growth: 0.7

Quality: 4.4

Yield: 0.0

Momentum: 0.5

Volatility: 1.3

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

2.37$

Current Price

2.37$

Potential

-0.00%

Expected Cash-Flows