Vera Bradley Inc (VRA)
NASDAQConsumer DiscretionaryApparel - Footwear & AccessoriesSnapshot 2026-09-09
$3.08-8.61%
Close 2026-09-09 · 1-day change
NASDAQConsumer DiscretionaryApparel - Footwear & AccessoriesSnapshot 2026-09-09
Warn: Management is running behind on a stated commitment.
Vera Bradley aims to stabilize revenue between $255M and $270M in 2027. The company showed 7.8% revenue growth in Q1 2027. Management plans to improve gross profit and cut costs. New leadership and partnerships may help the turnaround.
Revenue growth is weak and below targets. Profit margins are shrinking, showing poor cost control. The company is still losing money and faces tough market conditions.
The market expects about zero revenue growth and a slow recovery. Our fair value near $11 reflects this cautious view. We see some upside if revenue and margins improve as planned.
Breaks if: Gross profit and SG&A rates do not improve or worsen in FY2027
Anticipate improvements in gross profit and SG&A rates to enable operating loss improvement.
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
This investment represents a turnaround situation. VRA is currently struggling with loss-making operations and volatile management, making the long-term thesis uncertain.
The market seems to have priced in a low level of fragility, with VRA considered cheap compared to peers. However, there is a notable expectations gap, indicating that the market anticipates challenges ahead.
Fundamentals are likely to remain weak in the near term, as recent financial performance has declined significantly. Management aims to stabilize revenue and improve profit margins, but progress appears limited.
The thesis hinges on several factors, including management's ability to meet revenue targets and the overall performance of the Consumer Discretionary sector. Additionally, any changes in inflation or guidance cuts could negatively impact VRA.
The most important moves since the prior daily snapshot.
Yes, our read has strengthened. The latest earnings beat supports this improved outlook. There are no new threats identified that could weaken the thesis.
as of 2026-09-09
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Stated in 2 of last 2 quarters. Gross profit was $28.8M in 2027-Q1, down from $40.6M in 2026-Q4. Despite management's focus on improving gross profit and SG&A rates, the financials show a decline, indicating limited progress.
“Due to continued operational focus, the Company anticipates improvements in gross profit and SG&A rates.”
“The Company anticipates improvements in gross profit and SG&A rates, enabling operating loss improvement by 40% or better.”
Breaks if: Major leadership changes or failure to execute turnaround plan
Breaks if: Total revenue falls below $255 million in FY2027
Focus on stabilizing the business with a revenue target range of $255 million to $270 million for fiscal 2027.
Stated in 2 of last 2 quarters. Revenue for 2027-Q1 was $55.7M, down from $84.9M in 2026-Q4. The company has set a revenue target range of $255M-$270M for fiscal 2027, but current quarterly revenue suggests limited progress towards this goal.
“Based on the solid start to fiscal 2027, we now expect year-over-year non-GAAP operating loss improvement of at least 50%.”
“The Company continues to focus on stabilizing the business and plans for sales to be in the range of $255 million to $270 million.”
Over the next 1 to 3 years, VRA's outlook remains uncertain due to its current operational struggles and sector challenges. Not investment advice.