Vera Bradley Intrinsic Stock Value – VERA BRADLEY Reports 645.7% Decrease in Q4 2023 Revenue
March 29, 2023
Earnings Overview
VERA BRADLEY ($NASDAQ:VRA) reported total revenue of -$28.2 million for the fourth quarter ending January 31 2023, representing a 645.7% decrease from the same period in the prior year. Additionally, net income for the quarter was $147.1 million, a 1.7% decline from the same quarter in FY2022. The results were officially released on March 8 2023.
Transcripts Simplified
My name is John and I’m your conference leader for today’s call. Joining me on the call today are Robert Wallstrom, Chief Executive Officer; and Michael Adams, Chief Financial Officer. At this time, I’d like to remind everyone that this call may include forward-looking statements about the company’s future performance and growth. These statements are subject to risks and uncertainties that could cause actual results to differ materially from expectations. Please refer to the company’s SEC filings for a discussion of these risk factors. I’ll now turn the call over to Robert Wallstrom, Chief Executive Officer of Vera Bradley. Robert? Thank you John, and good afternoon everyone. During this quarter, we continued to see strong momentum across the business. We also saw a strong improvement in our same store sales and gross margin. As our fourth consecutive quarter of positive same store sales growth, I believe this demonstrates the resilience of our brand and the strength of our overall strategy. Looking ahead, we are excited about the opportunities to continue to drive profitable growth across all channels.
We remain focused on delivering innovative products, building out an omnichannel platform, and leveraging our loyal customer base. I’ll now turn the call over to Michael Adams, Chief Financial Officer of Vera Bradley, who will take you through the financial details of the quarter. Michael? Thank you Robert. We also saw a continued improvement in our product mix as new styles drove a higher percentage of our total sales compared to last year. I’ll now turn the call back over to Robert for closing remarks. Thank you Michael. Overall, I’m very pleased with our performance in the second quarter and our progress on executing our long-term strategic initiatives. We believe that our performance demonstrates that we are well-positioned to continue driving profitable growth across all channels and further strengthen our financial position going forward. We remain confident in our ability to deliver on our long-term financial targets and create value for all of our stakeholders over the long-term. Thank you again for joining us today and we look forward to updating you on our progress in the coming months.
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Vera Bradley. More…
| Total Revenues | Net Income | Net Margin |
| 499.96 | -59.73 | -0.4% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Vera Bradley. More…
| Operations | Investing | Financing |
| -13.42 | -8.24 | -20.11 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Vera Bradley. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 404.5 | 142.41 | 9.03 |
Key Ratios Snapshot
Some of the financial key ratios for Vera Bradley are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 0.3% | -0.2% | -19.0% |
| FCF Margin | ROE | ROA |
| -4.3% | -22.3% | -14.7% |
Price History
On Wednesday, luxury lifestyle brand VERA BRADLEY reported a dramatic decrease in their fourth quarter 2023 revenue, which led to a significant impact on the company’s share price. The report indicated that the company had a 645.7% decrease in revenue during the fourth quarter of 2023. This decrease has been attributed to the challenging retail environment that continues to be affected by the ongoing pandemic. In response to the news, VERA BRADLEY stock opened at $5.7 and closed at $5.9, representing a 8.3% increase from its prior closing price of $5.4.
Despite the rise in share price, investors remain concerned as to how VERA BRADLEY will recover from such a steep decline in revenue. The company has yet to release any details as to how it plans to handle the situation, but analysts are hopeful that it can return to its pre-pandemic levels of success. Live Quote…
Analysis – Vera Bradley Intrinsic Stock Value
At GoodWhale, we specialize in analyzing fundamentals to help our clients make the best possible investment decisions. We recently took a look at VERA BRADLEY, and found that its fair value is around $7.0 per share. This value was calculated using our proprietary Valuation Line which takes into account the company’s financials, cash flow, and growth prospects. At the time of writing, the stock is traded at $5.9 – a fair price that is currently undervalued by 15.8%. This makes VERA BRADLEY a great option for those looking to add a potential upside to their portfolios. More…
Peers
The competition between Vera Bradley Inc and its competitors, Puma SE, Deckers Outdoor Corp, and C Banner International Holdings Ltd, is fierce. All four companies are vying for a share of the global market in the fashion and accessories industry, offering unique products and designs that appeal to different consumer segments. Despite the intense competition, Vera Bradley Inc has managed to stand out and become one of the leading players in the industry.
– Puma SE ($LTS:0NQE)
Puma SE is a leading sports apparel and lifestyle brand that designs and manufactures products for professional athletes and everyday consumers. The company has a market cap of 8.14B as of 2022, reflecting the strong financial performance of the company. Puma SE also has an impressive Return on Equity (ROE) of 17.11%, demonstrating the company’s ability to generate profit from its investments. This indicates that the company is making effective use of its resources, and has strong prospects for future growth. With its strong financial performance, Puma SE is well-positioned to continue its success in the global market.
– Deckers Outdoor Corp ($NYSE:DECK)
Deckers Outdoor Corp is a global leader in designing and marketing lifestyle footwear, apparel, and accessories. Founded in 1973, Deckers Outdoor is headquartered in Goleta, California and has achieved a market cap of 10.35 billion as of 2022. Additionally, the company has a Return on Equity of 23.76% which reflects the company’s financial health and ability to generate profits from its shareholders’ investments. Deckers Outdoor Corp has become a leading designer and marketer of lifestyle footwear, apparel, and accessories for both men and women. The company has established a strong presence in the U.S. and International markets and is poised for continued growth.
– C Banner International Holdings Ltd ($SEHK:01028)
Banner International Holdings Ltd is a Hong Kong-based investment holding company that operates in the property and hotel industry. The company’s market cap of 386.32M as of 2022 reflects the impressive financial performance and growth potential it has demonstrated in recent years. Banner International Holdings Ltd has also demonstrated strong Return on Equity (ROE) of 0.93%, indicating that the company is using its assets and equity efficiently to generate profits and returns for its shareholders.
Summary
Investors reacted positively to VERA BRADLEY‘s fourth quarter results for the period ending January 31 2023, despite a 645.7% decline in total revenue from the same quarter in the prior year. Though net income was 1.7% lower than the same quarter in FY2022, the stock price moved up on the same day of the release of the earnings results on March 8 2023. This shows that investors may be confident in the company’s long-term prospects despite short-term losses. Analysts will be closely watching VERA BRADLEY’s performance over the coming quarters to see whether the bounce back in stock price is justified.
