Examining the Future: Vera Bradley's Earnings Outlook

Vera Bradley VRA is preparing to release its quarterly earnings on Wednesday, 2024-12-11. Here's a brief overview of what investors should keep in mind before the announcement.

Analysts expect Vera Bradley to report an earnings per share (EPS) of $0.27.

The market awaits Vera Bradley's announcement, with hopes high for news of surpassing estimates and providing upbeat guidance for the next quarter.

It's important for new investors to understand that guidance can be a significant driver of stock prices.

Overview of Past Earnings

The company's EPS missed by $0.03 in the last quarter, leading to a 4.21% increase in the share price on the following day.

Here's a look at Vera Bradley's past performance and the resulting price change:

Market Performance of Vera Bradley's Stock

Shares of Vera Bradley were trading at $5.5 as of December 06. Over the last 52-week period, shares are down 25.17%. Given that these returns are generally negative, long-term shareholders are likely a little upset going into this earnings release.

Analyst Observations about Vera Bradley

For investors, staying informed about market sentiments and expectations in the industry is paramount. This analysis provides an exploration of the latest insights on Vera Bradley.

The consensus rating for Vera Bradley is Buy, derived from 5 analyst ratings. An average one-year price target of $6.0 implies a potential 9.09% upside.

Comparing Ratings with Peers

The following analysis focuses on the analyst ratings and average 1-year price targets of Superior Gr of Cos, FIGS and Oxford Industries, three prominent industry players, providing insights into their relative performance expectations and market positioning.

• Analysts currently favor an Buy trajectory for Superior Gr of Cos, with an average 1-year price target of $22.5, suggesting a potential 309.09% upside.
• The consensus among analysts is an Neutral trajectory for FIGS, with an average 1-year price target of $6.0, indicating a potential 9.09% upside.
• For Oxford Industries, analysts project an Neutral trajectory, with an average 1-year price target of $79.0, indicating a potential 1336.36% upside.

Key Findings: Peer Analysis Summary

Within the peer analysis summary, vital metrics for Superior Gr of Cos, FIGS and Oxford Industries are presented, shedding light on their respective standings within the industry and offering valuable insights into their market positions and comparative performance.

Key Takeaway:

Vera Bradley ranks at the bottom for Revenue Growth and Gross Profit, with negative growth rates and lower profit figures compared to peers. It also has the lowest Return on Equity among the group. Overall, Vera Bradley's performance lags behind its peers in key financial metrics.

Unveiling the Story Behind Vera Bradley

Vera Bradley Inc designs women's handbags, travel items, and accessories. Each category comprises a substantial component of total sales, with the bags category comprising the most. most of the company's sales are made directly to customers through Vera Bradley's retail stores and e-commerce sites. The company also has a substantial wholesale business selling to specialty retail and department stores. Almost all company sales are in the United States. Vera Bradley uses third-party manufacturers in Asia to produce its products, and the company distributes the products through its distribution center in Indiana. The Company has three reportable segments: Vera Bradley Direct, Vera Bradley Indirect, and Pura Vida. The majority of revenue is from the Vera Bradley Direct segment.

A Deep Dive into Vera Bradley's Financials

Market Capitalization Analysis: The company exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests a smaller scale relative to peers.

Revenue Challenges: Vera Bradley's revenue growth over 3 months faced difficulties. As of 31 July, 2024, the company experienced a decline of approximately -13.54%. This indicates a decrease in top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Consumer Discretionary sector.

Net Margin: Vera Bradley's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 5.15%, the company showcases strong profitability and effective cost management.

Return on Equity (ROE): The company's ROE is below industry benchmarks, signaling potential difficulties in efficiently using equity capital. With an ROE of 2.34%, the company may need to address challenges in generating satisfactory returns for shareholders.

Return on Assets (ROA): Vera Bradley's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 1.53% ROA, the company effectively utilizes its assets for optimal returns.

Debt Management: Vera Bradley's debt-to-equity ratio is below the industry average at 0.31, reflecting a lower dependency on debt financing and a more conservative financial approach.

To track all earnings releases for Vera Bradley visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.