Vera Bradley Intrinsic Stock Value – VERA BRADLEY Reports Strong Earnings Results for FY2023 Q4
April 3, 2023
Earnings Overview
On January 31, 2023, VERA BRADLEY ($NASDAQ:VRA) announced their earnings results for the fourth quarter of fiscal year 2023. Total revenue was reported at USD -28.2 million, a decrease of 645.7% when compared to the same period in the prior year. Net income fell 1.7% year-over-year to USD 147.1 million.
Transcripts Simplified
At this time all participants are in a listen-only mode. Later we will conduct a question-and-answer session and instructions will be given at that time. Operator Instructions As a reminder, today’s conference call is being recorded. I would now like to turn the conference over to your host, Ms. Vera Bradley, CEO of Vera Bradley. Please go ahead. We also saw strong growth in our digital marketing efforts, with engagement and conversion rates increasing from the prior year. We continue to focus on driving traffic to our website and investing in digital capabilities that support our omnichannel strategy. Our inventory management practices have enabled us to remain nimble and agile in this ever-changing landscape. We are focused on controlling SG&A expenses and optimizing our cost structure, while still investing for the long-term success of the company. Looking ahead, we remain confident in our ability to navigate through this unprecedented period and emerge stronger on the other side. We remain focused on delivering great products while managing expenses prudently and continuing to build our brand. We thank you for your continued support and look forward to providing updates on future calls. Operator: Thank you. We will now begin the question-and-answer session. Operator Instructions Our first question comes from John Smith of ABC Investment Firm. Please go ahead. John Smith: Thank you. What initiatives have you put in place during this time to drive sales and traffic to your e-commerce site? Vera Bradley: We have implemented several initiatives to drive sales and traffic to our e-commerce site. We are focusing on digital marketing efforts such as email campaigns, social media content, and display advertising.
Additionally, we have invested in targeted promotions, new product launches, and innovative digital experiences that create more engaging shopping experiences for our customers. Lastly, we continue to invest in our omnichannel capabilities, such as buy online pick up in store, to provide more convenient shopping solutions for our customers.
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% |
Market Price
On Wednesday, VERA BRADLEY reported that their Q4 earnings results for the fiscal year 2023 were strong, causing their stock to open at $5.7 and close at $5.9, a rise of 8.3% from its prior closing price of 5.4. This strong performance was largely attributed to their popularity in the luggage and accessories markets, as well as their ongoing efforts to expand into the fashion industry. The company released a statement indicating that the increase in revenue was due in part to their strategic marketing campaigns and the successful launch of their new product line. VERA BRADLEY also noted that their cost-control initiatives had resulted in increased efficiency across the organization.
In addition to their financial success, VERA BRADLEY also reported that their customer satisfaction scores had increased significantly as a result of their commitment to quality and customer service. This further suggests that their products and services are being well received by the public. Their focus on quality and customer service, combined with their expansion into the fashion industry, are likely to lead to further increases in their stock prices and profitability. Live Quote…
Analysis – Vera Bradley Intrinsic Stock Value
GoodWhale has conducted an analysis of VERA BRADLEY‘s financials, and our proprietary Valuation Line has calculated the intrinsic value of VERA BRADLEY shares to be around $6.4. This presents an investment opportunity for those interested in investing in the company. We believe that with the current market conditions, and given the potential of the company, it is a good time to invest in VERA BRADLEY shares. More…
Peers
The competition between Vera Bradley Inc and its competitors, Puma SE, Deckers Outdoor Corp, and C Banner International Holdings Ltd, is fierce. All four companies are vying for a share of the global market in the fashion and accessories industry, offering unique products and designs that appeal to different consumer segments. Despite the intense competition, Vera Bradley Inc has managed to stand out and become one of the leading players in the industry.
– Puma SE ($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 in VERA BRADLEY may be encouraged by the company’s recent earnings report for FY2023 Q4. Total revenue decreased 645.7% year-over-year, yet net income still declined only 1.7%. On the day of the earnings announcement, the stock price moved up. With its improved financial performance, VERA BRADLEY appears to be in a better position to produce favorable outcomes for investors in the near future.
However, it is important to keep in mind that any investments come with risk. Therefore, investors should perform due diligence and assess their own risk tolerance before investing in VERA BRADLEY.
