VERA BRADLEY Reports Decrease in Revenue and Net Income for FY2023 Q3
December 26, 2022
Earnings report
On December 7 2022, VERA BRADLEY ($NASDAQ:VRA) reported earnings results for FY2023 Q3 as of October 31 2022. VERA BRADLEY is a lifestyle brand that designs and sells handbags, luggage, accessories, and home items. The company’s products are available in its retail stores, online, and through various retail outlets. For the third quarter, the company achieved total revenue of USD 5.2 million, down 10.6% year-on-year. Reported net income was USD 124.0 million, down 7.9% year-on-year. The decrease in revenue was primarily due to the impact of the ongoing pandemic. As a result of the pandemic, VERA BRADLEY was forced to close stores, reduce staff, and implement cost-cutting measures to remain competitive.
This increase was attributed to favorable product mix and lower markdowns. The company also reported a decrease in operating expenses during the quarter due to cost-saving initiatives and improved operational efficiency. Overall, VERA BRADLEY’s financials reported a decrease in revenue and net income for the reported quarter, largely due to the continued impact of the pandemic. Despite these challenges, the company implemented a number of cost-saving measures and improved its gross margin and balance sheet. Going forward, VERA BRADLEY will focus on adapting to the changing market conditions by continuing to invest in digital capabilities and developing innovative products that fit current consumer needs.
Price History
Despite the news, the company’s stock opened at $4.4 and closed at $4.6, soaring by 15.7% from its last closing price of $4.0. The brand, which specializes in handbags, luggage, accessories and gifts, has experienced a drop in sales for the past few quarters due to the pandemic.
However, VERA BRADLEY has managed to stay afloat by cutting costs and shifting its focus to digital marketing and e-commerce. The company’s CEO, Rob Wallstrom, stated that they are encouraged by the increase in their stock price despite the decrease in revenue. He believes that this is a sign of investors’ confidence in the company’s ability to turn things around in the coming quarters. VERA BRADLEY is continuing to explore new ways to expand their customer base, such as launching new product lines and improving their online presence.
In addition, they are focusing on growing their international presence by expanding into new markets such as China and India. Ultimately, VERA BRADLEY is determined to succeed despite the current challenges. With a strategic plan in place and a focus on innovation, the company is confident that it will be able to make a strong rebound in the coming quarters. Live Quote…
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 |
| 502.45 | -26.42 | -0.0% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Vera Bradley. More…
| Operations | Investing | Financing |
| -16.11 | -7.95 | -25.32 |
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 |
| 461.34 | 158.59 | 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 |
| 3.2% | -0.2% | -1.5% |
| FCF Margin | ROE | ROA |
| -4.9% | -1.7% | -1.0% |
VI Analysis
Vera Bradley‘s fundamentals are an important indicator of its long term potential. This can be easily assessed with the help of the VI App. VI’s Risk Rating gives Vera Bradley a low risk score, meaning that it is a safe investment in terms of both financial and business aspects. While no major risks were detected in the income statement or cash flow statement, the balance sheet did have one risk warning. Users of the VI App can register to find out more about this warning. Overall, Vera Bradley is a well-established company with a strong record of financial performance and business stability. Its strong fundamentals indicate that it is a safe investment for the long term. The VI App makes it easy to assess a company’s fundamentals and provides an accurate risk rating, which can help investors make informed decisions. More…
VI 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
Investing in VERA BRADLEY can be seen as a risky but potentially rewarding venture. On December 7, 2022, the company reported earnings results for FY2023 Q3 as of October 31, 2022, showing total revenue of USD 5.2 million, down 10.6% year-on-year and net income of USD 124.0 million, down 7.9% year-on-year. Despite the decrease in year-on-year figures, the stock price moved up the same day. Given the company’s financial health, investors need to consider several factors before making a decision.
First, VERA BRADLEY’s financial statements should be closely examined to determine if there are any hidden financial risks or red flags. Investors should also consider the company’s competitive position in the industry and its potential for future growth.
Additionally, the company’s track record of performance should be reviewed to determine whether it has a history of consistent growth or volatility in its financial results. Overall, investors should do their research and evaluate the potential risks and rewards of investing in VERA BRADLEY before making a decision. It is important to remember that investing comes with a certain level of risk, and investors should carefully consider their own financial situation before taking on any new investments.
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