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.


Snowflake Analysis

Flawless balance sheet and undervalued.


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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

14.6%

VRA

3.7%

US Luxury

2.4%

US Market


1 Year Return

-67.3%

VRA

-19.9%

US Luxury

-10.0%

US Market

Return vs Industry: VRA underperformed the US Luxury industry which returned -19.9% over the past year.

Return vs Market: VRA underperformed the US Market which returned -10% over the past year.


Shareholder returns

VRAIndustryMarket
7 Day14.6%3.7%2.4%
30 Day-43.7%-12.1%-11.0%
90 Day-63.7%-28.4%-19.4%
1 Year-67.3%-67.3%-18.3%-19.9%-8.1%-10.0%
3 Year-54.7%-54.7%26.8%20.9%17.3%9.6%
5 Year-73.2%-73.2%9.2%1.7%36.1%21.1%

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?

8.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: VRA ($4.08) is trading below our estimate of fair value ($4.44)

Significantly Below Fair Value: VRA is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: VRA is good value based on its PE Ratio (8.6x) compared to the Luxury industry average (10.8x).

PE vs Market: VRA is good value based on its PE Ratio (8.6x) compared to the US market (13x).


Price to Earnings Growth Ratio

PEG Ratio: VRA is good value based on its PEG Ratio (0.2x)


Price to Book Ratio

PB vs Industry: VRA is good value based on its PB Ratio (0.4x) compared to the US Luxury industry average (0.7x).


Next Steps

Future Growth

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

36.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: VRA's forecast earnings growth (36.8% per year) is above the savings rate (1.7%).

Earnings vs Market: VRA's earnings (36.8% per year) are forecast to grow faster than the US market (13.3% per year).

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

Revenue vs Market: VRA's revenue (7.5% per year) is forecast to grow faster than the US market (7% per year).

High Growth Revenue: VRA's revenue (7.5% 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?

-20.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: VRA has a large one-off loss of $12.3M impacting its February 1 2020 financial results.

Growing Profit Margin: VRA's current net profit margins (3.2%) are lower than last year (5%).


Past Earnings Growth Analysis

Earnings Trend: VRA's earnings have declined by -20.9% 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 (-22.7%) over the past year, making it difficult to compare to the Luxury industry average (3.2%).


Return on Equity

High ROE: VRA's Return on Equity (4.6%) is considered low.


Next Steps

Financial Health

How is Vera Bradley's financial position?


Financial Position Analysis

Short Term Liabilities: VRA's short term assets ($218.8M) exceed its short term liabilities ($87.4M).

Long Term Liabilities: VRA's short term assets ($218.8M) exceed its long term liabilities ($113.8M).


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


Next Steps

Dividend

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


Dividend Yield vs Market

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

How experienced are the management team and are they aligned to shareholders interests?

2.9yrs

Average management tenure


CEO

Robert Wallstrom (53yo)

6.42s

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 ($USD2.62M) is above average for companies of similar size in the US market ($USD615.59K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Robert Wallstrom
CEO, President & Director6.42yrsUS$2.62m0.91% $1.2m
Patricia Miller
Co-Founder38.25yrsUS$134.50k16.31% $22.0m
John Enwright
Executive VP & CFO3.08yrsUS$922.82k0.22% $297.0k
Beatrice Cabe
Chief Creative Officer2.58yrsUS$922.82k0.20% $267.6k
Kevin Korney
Chief Merchandising Officer2.25yrsUS$777.33k0.094% $127.6k
Daren Hull
Chief Customer Officer1.75yrsUS$1.29m0.064% $86.2k
Pamela Sours
Senior Vice President of Operations6.17yrsno datano data
Mark Dely
Chief Administrative & Legal Officer and Corporate Secretary2.58yrsUS$597.02k0.023% $31.5k
Julia Bentley
Vice President of Investor Relations & Communications6.25yrsno datano data
Stephanie Scheele
Chief Marketing Officer2.67yrsno data0.10% $137.2k

2.9yrs

Average Tenure

46yo

Average Age

Experienced Management: VRA's management team is considered experienced (2.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Robert Wallstrom
CEO, President & Director6.42yrsUS$2.62m0.91% $1.2m
Mary Kelley
Independent Director4.33yrsUS$142.60k0.065% $87.5k
John Kyees
Lead Independent Director9.25yrsUS$157.00k0.16% $219.9k
Barbara Baekgaard
Co-Founder & Director38.25yrsUS$876.26k8.56% $11.6m
Edward Schmults
Independent Director9.58yrsUS$148.90k0.073% $98.7k
Robert Hall
Chairman9.58yrsUS$161.50k1.81% $2.5m
Richard Baum
Independent Director8.5yrsUS$147.10k0.086% $116.1k
Matthew McEvoy
Independent Director8.75yrsUS$143.50k0.23% $307.5k
P. Miller
Director30.25yrsUS$134.50k0.28% $373.9k
Frances Philip
Independent Director8.92yrsUS$148.67k0.090% $122.0k

9.1yrs

Average Tenure

61yo

Average Age

Experienced Board: VRA's board of directors are considered experienced (9.1 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

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$135.135m
  • Shares outstanding: 33.12m
  • 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
ELICHFBRSE (Berne Stock Exchange)YesCommon StockCHCHFOct 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 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; and other products, including apparel/footwear, 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 February 1, 2020, it operated 88 full-line and 63 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 and www.puravidabracelets.eu. It also sells its Vera Bradley branded products to approximately 2,200 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 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 Analysis2020/04/08 07:27
End of Day Share Price2020/04/07 00:00
Earnings2020/02/01
Annual Earnings2020/02/01


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.