NasdaqGS:VRA

Stock Analysis Report

Executive Summary

Vera Bradley, Inc., together with its subsidiaries, designs, manufactures, and sells women’s handbags, luggage and travel items, fashion and home accessories, and gifts.

Rewards

Earnings are forecast to grow 51.6% per year

Risk Analysis

Large one-off items impacting financial results

Profit margins (2.7%) are lower than last year (4.8%)

Significant insider selling over the past 3 months



Snowflake Analysis

Flawless balance sheet with reasonable growth potential.


Similar Companies

Share Price & News

How has Vera Bradley's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: VRA has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.0%

VRA

1.1%

US Luxury

1.2%

US Market


1 Year Return

18.8%

VRA

22.6%

US Luxury

24.2%

US Market

Return vs Industry: VRA underperformed the US Luxury industry which returned 28% over the past year.

Return vs Market: VRA underperformed the US Market which returned 24.7% over the past year.


Shareholder returns

VRAIndustryMarket
7 Day-1.0%1.1%1.2%
30 Day-7.3%2.0%3.5%
90 Day2.2%8.6%11.7%
1 Year18.8%18.8%25.1%22.6%26.9%24.2%
3 Year-7.3%-7.3%75.2%67.4%53.0%43.2%
5 Year-42.2%-42.2%58.6%48.1%75.3%56.0%

Price Volatility Vs. Market

How volatile is Vera Bradley's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Vera Bradley undervalued compared to its fair value and its price relative to the market?

31.24x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: VRA ($11.25) is trading above our estimate of fair value ($6.39)

Significantly Below Fair Value: VRA is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: VRA is poor value based on its PE Ratio (31.5x) compared to the Luxury industry average (18.8x).

PE vs Market: VRA is poor value based on its PE Ratio (31.5x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: VRA is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: VRA is good value based on its PB Ratio (1.3x) compared to the US Luxury industry average (1.3x).


Next Steps

Future Growth

How is Vera Bradley forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

51.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: VRA's forecast earnings growth (51.6% per year) is above the savings rate (1.7%).

Earnings vs Market: VRA's earnings (51.6% per year) are forecast to grow faster than the US market (14.3% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: VRA's revenue (13.4% per year) is forecast to grow faster than the US market (7.5% per year).

High Growth Revenue: VRA's revenue (13.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if VRA's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Vera Bradley performed over the past 5 years?

-23.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: VRA has a large one-off loss of $11.7M impacting its November 2 2019 financial results.

Growing Profit Margin: VRA's current net profit margins (2.7%) are lower than last year (4.8%).


Past Earnings Growth Analysis

Earnings Trend: VRA's earnings have declined by -23.6% per year over the past 5 years.

Accelerating Growth: VRA's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: VRA had negative earnings growth (-40.8%) over the past year, making it difficult to compare to the Luxury industry average (15%).


Return on Equity

High ROE: VRA's Return on Equity (3.4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Vera Bradley's financial position?


Financial Position Analysis

Short Term Liabilities: VRA's short term assets ($211.3M) exceed its short term liabilities ($93.9M).

Long Term Liabilities: VRA's short term assets ($211.3M) exceed its long term liabilities ($115.8M).


Debt to Equity History and Analysis

Debt Level: VRA is debt free.

Reducing Debt: VRA had no debt 5 years ago.

Debt Coverage: VRA has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: VRA has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: VRA has a high level of physical assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if VRA's debt is covered by short term assets.


Next Steps

Dividend

What is Vera Bradley's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.3%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate VRA's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate VRA's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if VRA's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if VRA's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of VRA's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of Vera Bradley's salary, the management and board of directors tenure and is there insider trading?

2.6yrs

Average management tenure


CEO

Robert Wallstrom (53yo)

6.2yrs

Tenure

US$2,624,825

Compensation

Mr. Robert T. Wallstrom has been the Chief Executive Officer and President of Vera Bradley, Inc. since November 11, 2013. Mr. Wallstrom served as the President of Saks Fifth Avenue Off 5Th at Saks Inc. fro ...


CEO Compensation Analysis

Compensation vs Market: Robert's total compensation ($USD2.62M) is above average for companies of similar size in the US market ($USD1.70M).

Compensation vs Earnings: Robert's compensation has been consistent with company performance over the past year.


Management Age and Tenure

2.6yrs

Average Tenure

46yo

Average Age

Experienced Management: VRA's management team is considered experienced (2.6 years average tenure).


Board Age and Tenure

8.8yrs

Average Tenure

61yo

Average Age

Experienced Board: VRA's board of directors are considered experienced (8.8 years average tenure).


Insider Trading

Insider Buying: VRA insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

BuyUS$10,361,57816 Jan 20
Patricia Miller
EntityIndividual
Role
Top Key Executive
Co-Founder
Shares883,340
Max PriceUS$11.73
SellUS$10,361,57816 Jan 20
Patricia Miller
EntityIndividual
Role
Top Key Executive
Co-Founder
Shares883,340
Max PriceUS$11.73
SellUS$114,62217 Dec 19
Edward Schmults
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares10,280
Max PriceUS$11.15
SellUS$611,18423 Oct 19
Barbara Baekgaard
EntityIndividual
Role
Member of the Board of Directors
Co-Founder & Director
Shares56,787
Max PriceUS$10.91
BuyUS$9,84011 Sep 19
John Enwright
EntityIndividual
Role
Chief Financial Officer
Executive VP & CFO
Shares1,025
Max PriceUS$9.60
BuyUS$49,93809 Sep 19
Robert Wallstrom
EntityIndividual
Role
Chief Executive Officer
CEO, President & Director
Shares5,434
Max PriceUS$9.19

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Julia Bentley (60yo)

    Vice President of Investor Relations & Communications

    • Tenure: 6yrs
  • Pat Miller (81yo)

    Co-Founder

    • Tenure: 38yrs
    • Compensation: US$134.50k
  • Robert Wallstrom (53yo)

    CEO, President & Director

    • Tenure: 6.2yrs
    • Compensation: US$2.62m
  • Mark Dely (43yo)

    Chief Administrative & Legal Officer and Corporate Secretary

    • Tenure: 2.3yrs
    • Compensation: US$597.02k
  • Pam Sours

    Senior Vice President of Operations

    • Tenure: 5.9yrs
  • Stephanie Scheele (42yo)

    Chief Marketing Officer

    • Tenure: 2.4yrs
  • John Enwright (46yo)

    Executive VP & CFO

    • Tenure: 2.8yrs
    • Compensation: US$922.82k
  • Beatrice Cabe (40yo)

    Chief Creative Officer

    • Tenure: 2.3yrs
    • Compensation: US$922.82k
  • Kevin Korney (49yo)

    Chief Merchandising Officer

    • Tenure: 2yrs
    • Compensation: US$777.33k
  • Daren Hull (45yo)

    Chief Customer Officer

    • Tenure: 1.5yrs
    • Compensation: US$1.29m

Board Members

  • Mary Kelley (58yo)

    Independent Director

    • Tenure: 4.1yrs
    • Compensation: US$142.60k
  • John Kyees (72yo)

    Lead Independent Director

    • Tenure: 9yrs
    • Compensation: US$157.00k
  • Barbara Baekgaard (80yo)

    Co-Founder & Director

    • Tenure: 38yrs
    • Compensation: US$876.26k
  • Ed Schmults (56yo)

    Independent Director

    • Tenure: 9.3yrs
    • Compensation: US$148.90k
  • Robert Hall (61yo)

    Chairman

    • Tenure: 9.3yrs
    • Compensation: US$161.50k
  • Robert Wallstrom (53yo)

    CEO, President & Director

    • Tenure: 6.2yrs
    • Compensation: US$2.62m
  • Richard Baum (72yo)

    Independent Director

    • Tenure: 8.3yrs
    • Compensation: US$147.10k
  • Matt McEvoy (57yo)

    Independent Director

    • Tenure: 8.5yrs
    • Compensation: US$143.50k
  • P. Miller (81yo)

    Director

    • Tenure: 30yrs
    • Compensation: US$134.50k
  • Fran Philip (61yo)

    Independent Director

    • Tenure: 8.7yrs
    • Compensation: US$148.67k

Company Information

Vera Bradley, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Vera Bradley, Inc.
  • Ticker: VRA
  • Exchange: NasdaqGS
  • Founded: 1982
  • Industry: Apparel, Accessories and Luxury Goods
  • Sector: Consumer Durables
  • Market Cap: US$374.777m
  • Shares outstanding: 33.64m
  • Website: https://www.verabradley.com

Number of Employees


Location

  • Vera Bradley, Inc.
  • 12420 Stonebridge Road
  • Roanoke
  • Indiana
  • 46783
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
VRANasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDOct 2010
ELIDB (Deutsche Boerse AG)YesCommon StockDEEUROct 2010

Biography

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 two segments, Direct and Indirect. The company offers totes, crossbodies, satchels, clutches, backpacks, baby bags, and lunch bags; accessories, including wallets, wristlets, eyeglass cases, scarves, and various technology accessories; and travel products, such as 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, which comprise mugs and tumblers; and other products, including apparel/footwear, stationery, merchandising, and gift card products, as well as freight and licensing 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 February 2, 2019, it operated 99 full-line stores and 57 factory outlet stores. The company also sells its Vera Bradley branded products to approximately 2,300 specialty retail locations, as well as department stores, national accounts, third party e-commerce sites, and third-party inventory liquidators, as well as through licensing agreements. Vera Bradley, Inc. was founded in 1982 and is headquartered in Roanoke, Indiana. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/01/21 00:41
End of Day Share Price2020/01/17 00:00
Earnings2019/11/02
Annual Earnings2019/02/02


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.