Vera Bradley Inc (VRA) Stock Analysis
Verdict: WATCH (do not buy)
Q2 direct-sales return to profit sparks momentum, but ongoing indirect channel weakness and revenue contraction (-20.2%) urge caution.
Investment score: 53/100
Analysis as of
Is Vera Bradley Inc stock worth reviewing? The TradeMates thesis
Vera Bradley returned to Q2 operating profitability with $0.11 EPS on $71.65M revenue, driven by 8% Direct-channel growth and tariff refunds. However, TTM revenue decline of -20.21%, negative EPS (-$0.6853), and high debt ($70.5M vs $18.5M cash) keep the fundamental turnaround high-risk.
7-factor investment score
- Valuation: 45/100 (weight 20%)
- Financial Health: 35/100 (weight 15%)
- Technical Momentum: 75/100 (weight 15%)
- Earnings Quality: 65/100 (weight 15%)
- Insider Sentiment: 60/100 (weight 10%)
- Analyst Consensus: 55/100 (weight 10%)
- Risk-Adjusted Return: 40/100 (weight 15%)
Vera Bradley Inc opportunities and risks
What speaks for VRA
- Direct Channel Turnaround via 'Project Sunshine'
What speaks against VRA
- Indirect Wholesale Channel Collapse
Peers and competitors
| Ticker | P/E | P/S | EV/EBITDA | Gross margin | Net margin | FCF yield |
|---|---|---|---|---|---|---|
| VRA | n/a | 0.4x | 8.6x | 50.4% | -3.7% | 46.0% |
| FOSL | n/a | 0.3x | n/a | 56.7% | -7.1% | -12.6% |
| SGC | 21.7x | 0.3x | 10.0x | 37.6% | 1.4% | 16.5% |
| PLBY | 132.1x | 1.0x | 18.1x | 72.7% | 0.2% | 1.1% |
| LAKE | n/a | 0.5x | n/a | 32.6% | -14.0% | -0.7% |
| VNCE | 15.5x | 0.4x | 14.9x | 52.5% | 2.4% | 15.1% |
| Peer median | 15.5x | 0.4x | 10.0x | 52.5% | 0.2% | 1.1% |
Frequently asked questions about Vera Bradley Inc (VRA)
Is VRA stock a good investment?
The TradeMates model rates Vera Bradley Inc as WATCH (do not buy) with an investment score of 53/100. Vera Bradley returned to Q2 operating profitability with $0.11 EPS on $71.65M revenue, driven by 8% Direct-channel growth and tariff refunds. However, TTM revenue decline of -20.21%, negative EPS (-$0.6853), and high debt ($70.5M vs $18.5M cash) keep the fundamental turnaround high-risk. This is algorithmic model output, not personal investment advice.
Is VRA stock a buy?
The TradeMates model verdict for VRA is WATCH (do not buy) with an investment score of 53/100. Treat this as a model signal to review, not a personal buy recommendation.