Vera Bradley (VRA) is a company that specializes in designing, manufacturing and selling accessories, handbags and travel items for women. From Vera Bradley’s official investor’s website:
Vera Bradley is a leading designer, producer, marketer and retailer of stylish and highly-functional accessories for women. Our products include a wide offering of handbags, accessories and travel and leisure items.
The company was founded after neighbors Barbara Bradley Baekgaard and Patricia Miller noticed the fact that there were no feminine looking luggage styles. They started the company with five hundred dollars, (each contributing $250). The name comes from Baekgaard’s mother, Vera, who was a stylish inspiration, formerly a model for Elizabeth Arden.Net revenues from continuing operations totaled $509.0 million for the fiscal year ended January 31, 2015.
The company closed this Wednesday’s exchange session decreasing down a 1.39 % to $15.62 despite expectations of profit and revenue rising year-over-year. When the company reports its fiscal 2017 first quarter results on Wednesday before the market open, investors will be expecting earnings of 5 cents a share on revenue $106.75 million
Vera Bradley has been through a period on instability and decline in the past five years. The company has struggled with obtaining satisfying revenue and subsequently has failed on taking advantage of the falling revenue to make a profit. The third quarter report will be a crucial milestone for all Vera Bradley Investors to consider. A year ago, the company’s earnings were flat while revenue came in at $101.1 million. For the recent period, investors will be focusing on the company’s comparable store sales and e-commerce sales.
The Company distributes its products through Vera Bradley Full Line stores, Vera Bradley Factory Outlet stores, its annual outlet sale (held in Fort Wayne), approximately 2700 specialty gift retailers, over 600 department stores (Dillard’s, Macy’s, Von Maur, Belk, and Bon Ton), key accounts (such as QVC and Disney), and third party e-commerce sites.
Experts reported about the Company’s business strategies on those fronts, “Estimate of 20 cents per share. The company credits a reduction in promotional activity for its improved margins. Vera Bradley eliminated super-sales where prices were cut by 60%-70% and reduced the number of promotional days by 50%. The cut in promotions devastated e-commerce sales, which plunged 19.1% on a year-over-year basis. However, it was a much better quarter for comparable store sales, which slumped just 2% year-over-year .”
The company’s strengths can be seen in several areas, such as its revenue growth, largely solid financial position accruing reasonable debt levels by most measures and attractive appraisal levels. However, as a counter to these strengths, we may also observe weakness including: net income, disappointing return on equity and weak operating cash flow.
STOCKS TO WATCH FOR THIS WEEK : Retailers have been dragging their weight for sometimes however this week several companies that are expected to change trends are to report earnings this week including : Ascena Retail Group (ASNA), Michael Kors (KORS), Ollie’s Bargain Outlet (OLLI), TiVo (TiVo), Joy Global (JOY), Ambarella (AMBA) and Five Below (FIVE).