Stock of the Day

December 27, 2019

Vera Bradley (VRA)

$5.85
-$0.14 (-2.3%)
Market Cap: $171.70M

About Vera Bradley

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 ID holders, lanyards, wallets, wristlets, eyewear, scarves, hair accessories, and various technology accessories; bracelets, rings, and necklaces under Pura Vida brand name; and travel products consist 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, outerwear, tees and hoodies, and socks; 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 outlet stores in the United States; verabradley.com, an online outlet site; its annual outlet sale in Fort Wayne, Indiana. It sells its Pura Vida branded products through wholesale retailers and Pura Vida websites, including www.puravidabracelets.com, www.puravidabracelets.eu, and www.puravidabracelets.ca; and Vera Bradley Indirect branded products to specialty retail locations, department stores, national accounts, third party e-commerce sites, third-party inventory liquidators, and through licensing agreements. Vera Bradley, Inc. was incorporated in 1982 and is headquartered in Roanoke, Indiana.

Today's Trend

Vera Bradley, Inc. (NASDAQ: VRA) shares increased after the company reported a stronger-than-expected fiscal second quarter and highlighted continued progress in its turnaround plan.

  • VRA returned to profitability. Fiscal Q2 net income was approximately $4.5 million, compared with a $4.7 million loss a year earlier. Reported EPS of $0.11 exceeded the consensus estimate of a $0.08 loss, while revenue of $71.6 million topped expectations of roughly $66 million. Vera Bradley Beats Q2 Earnings and Revenue Estimates
  • Sales and margins improved. Consolidated revenue rose 1.1%, led by an 8.0% increase in direct-segment sales. Gross margin expanded to 59.8% from 50.1%, and operating income from continuing operations improved to $4.2 million from a $4.6 million loss. Vera Bradley Announces Second Quarter Fiscal Year 2027 Results
  • Management maintained its outlook. Vera Bradley reiterated fiscal 2027 revenue guidance of $255 million to $270 million and is targeting at least a 50% improvement in operating profit. Inventory declined 28.4% year over year to $69.3 million, supporting the company’s efforts to improve cash flow and merchandise productivity. Vera Bradley Reiterates Fiscal 2027 Outlook
  • The quarter benefited from $7.7 million in tariff refunds related to prior-period customs entries. Cash totaled $34.2 million, but the one-time refund means investors will likely focus on whether the margin and profit improvements continue without similar benefits. Vera Bradley Posts Quarterly Profit
  • Indirect-channel sales remained weak, falling 39.4% to $6.3 million. The company also remains unprofitable on a trailing basis, so the rally depends on sustained execution of the turnaround and continued improvement in core direct sales. Vera Bradley Earnings Call Signals Turnaround Momentum
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