olivlawolivlaw

olivLaw · US equity research

Vera Bradley, Inc. VRA

Leather & Leather Products · SIC 3100 · Vertical: Leather products (SIC 31xx)

7.53USD+7.57% · 1 dayClose 04 Nov 2026

Vera Bradley designs and sells handbags, luggage and accessories under its own brand from Fort Wayne, Indiana, a recognized name in leather and textile goods. The company is in a restructuring called Project Sunshine, and net revenues in fiscal 2026 fell to 269.7 million USD, while the second quarter of fiscal 2027 showed net revenue growth of 1.1%.

At the close of 04 Nov 2026, Vera Bradley, Inc. (VRA) stock was 7.53 USD (+7.57% on the day), with market capitalisation 216.0 m USD, beta 1.35, 52-week range 1.80–7.53 USD. Latest reported quarter (Q2 2027): revenue of 71.6 m USD (+1.1% YoY), net income of 4.5 m USD, diluted EPS 0.15 USD.

Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.

Market cap
216.0 m USD
shares as of 08 Sept 2026
P/E (TTM)
unavailable
Diluted EPS TTM -0.37 · TTM to 01 Aug 2026
E/P (TTM)
-4.91%
TTM to 01 Aug 2026
Dividend yield
unavailable
Beta (2y)
1.35
Volatility (1y) 84%
52-week range
1.807.53

Price history

Loading chart…

Technical reading

RSI (14)
85.6
overbought (≥ 70)
Bollinger (20, 2)
4.93 – 7.24
above the upper band · %B 1.13 · band width 37.9%
SMA 50 / 200
4.78 / 3.72
uptrend (price > SMA50 > SMA200)
MACD (12, 26, 9)
0.62 / 0.55
MACD above signal

Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).

Performance

CompanyS&P 500vs S&P 500Vertical median
1 month+50.0%−1.1%+51.1 pp—
3 months+115.8%−0.5%+116.2 pp—
6 months+81.9%+4.4%+77.5 pp—
Year to date+211.2%+12.3%+198.8 pp—
1 year+221.8%+13.5%+208.3 pp+12.4%
3 years+1.6%+76.4%−74.8 pp+2.3%
5 years−29.0%+63.7%−92.6 pp—
Max drawdown (1y)
−40.2%
19 Nov 2025 → 11 Dec 2025
Max drawdown (5y)
−84.0%
12 Nov 2021 → 06 May 2025
Compound annual growth (5y)
−6.6%
S&P 500 +10.4%

Price returns, dividends excluded.

Quarterly results

Latest quarter: Q2 2027 · 01 Aug 2026

Revenue
71.6 m USD
+1.1% YoY
Net income
4.5 m USD
unavailable YoY
Diluted EPS
0.15
unavailable YoY
net / operating
6.3% / 5.8%

Quarterly margins

Quarterly statements · USD

Fiscal yearQ3 '25Q4 '25Q1 '26Q2 '26Q3 '26Q4 '26Q1 '27Q2 '27
Revenue70.5 m86.4 m51.7 m70.9 m62.3 m84.9 m55.7 m71.6 m
Cost of revenue32.1 m46.7 m28.9 m35.4 m36.1 m44.3 m26.9 m28.8 m
Gross profit38.4 m39.7 m22.8 m35.5 m26.2 m40.6 m28.8 m42.8 m
SG&A46.7 m52.2 m40.8 m40.4 m38.7 m38.2 m34.1 m38.7 m
Operating income-8.2 m-12.4 m-17.9 m-4.6 m-12.2 m2.7 m-4.6 m4.2 m
Depreciation & amortisation2.4 m ≈2.3 m2.2 m1.9 m ≈1.8 m ≈1.8 m1.8 m1.7 m ≈
Pre-tax income-8.1 m-12.4 m-17.9 m-4.7 m-12.3 m2.5 m-4.7 m4.4 m
Income tax5.2 m7.6 m407.0 k-17.0 k56.0 k-143.0 k112.0 k-93.0 k
Net income-12.8 m-47.0 m-33.5 m-4.7 m-12.4 m2.7 m-4.8 m4.5 m
Diluted EPS-0.46-1.69-1.20-0.17-0.440.09-0.170.15
Operating cash flow-22.6 m ≈21.7 m-17.9 m-5.4 m ≈-4.0 m ≈17.3 m-5.3 m23.0 m ≈
Capex2.4 m ≈4.3 m1.9 m742.0 k ≈452.0 k ≈225.0 k333.0 k705.0 k ≈
Share repurchases5.3 m ≈585.0 k00 ≈0 ≈0——

≈ derived quarter (cumulative difference / share-days average)

E/P over time

E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.

Fiscal years

Fiscal year20192020202120222023202420252026
Revenue416.1 m495.2 m468.3 m540.5 m500.0 m383.7 m318.8 m269.7 m
Revenue YoY−8.5%+19.0%−5.4%+15.4%−7.5%−23.3%−16.9%−15.4%
Net income20.8 m16.0 m8.7 m17.8 m-59.7 m7.8 m-62.2 m-47.8 m
Net income YoY+195.9%−22.7%−45.9%+105.5%−434.9%unavailable−893.4%unavailable
Diluted EPS0.590.470.260.52-1.900.25-2.15-1.71
Diluted EPS YoY+210.5%−20.3%−44.7%+100.0%−465.4%unavailable−960.0%unavailable
net %5.0%3.2%1.9%3.3%-11.9%2.0%-19.5%-17.7%
Free cash flow35.4 m7.3 m15.0 m34.4 m-21.7 m44.2 m-24.5 m-13.3 m

Reported results vs expectations

Loading…

Balance sheet & financial health

Fiscal year 2026 · 31 Jan 2026

Cash
18.5 m USD
Financial debt
unavailable USD
Net debt
unavailable USD
Equity
131.6 m USD
Total assets
234.0 m USD
Debt / equity
unavailable
Current ratio
2.37x
ROE
-30.8%
ROA
-17.7%
FCF margin
-4.9%

Financial statements (source on every figure)

Revenue and net income (USD)

Margins

Income statement · USD

Revenue
2024
383.7 m
2025
318.8 m
2026
269.7 m

SEC (XBRL)· 27 Mar 2026verified

Cost of revenue
2024
179.7 m
2025
160.0 m
2026
144.6 m

SEC (XBRL)· 27 Mar 2026verified

Gross profit
2024
204.0 m
2025
158.8 m
2026
125.0 m

SEC (XBRL)· 27 Mar 2026verified

SG&A
2024
193.2 m
2025
188.5 m
2026
158.1 m

SEC (XBRL)· 27 Mar 2026verified

Operating income
2024
11.6 m
2025
-28.8 m
2026
-31.9 m

SEC (XBRL)· 27 Mar 2026verified

Depreciation & amortisation
2024
8.0 m
2025
8.5 m
2026
7.8 m

SEC (XBRL)· 27 Mar 2026verified

EBITDA
2024
19.6 m ≈
2025
-20.3 m ≈
2026
-24.1 m ≈

SEC (XBRL)· 27 Mar 2026derived

Pre-tax income
2024
12.3 m
2025
-28.0 m
2026
-32.4 m

SEC (XBRL)· 27 Mar 2026verified

Income tax
2024
3.7 m
2025
5.3 m
2026
303.0 k

SEC (XBRL)· 27 Mar 2026verified

Net income
2024
7.8 m
2025
-62.2 m
2026
-47.8 m

SEC (XBRL)· 27 Mar 2026verified

Diluted EPS
2024
0.25
2025
-2.15
2026
-1.71

SEC (XBRL)· 27 Mar 2026verified

Weighted average diluted shares
2024
31.3 m
2025
28.9 m
2026
27.9 m

SEC (XBRL)· 27 Mar 2026verified

Balance sheet · USD

Cash
2024
77.3 m
2025
28.6 m
2026
18.5 m

SEC (XBRL)· 27 Mar 2026verified

Receivables
2024
17.1 m
2025
13.8 m
2026
17.3 m

SEC (XBRL)· 27 Mar 2026verified

Inventories
2024
118.3 m
2025
91.4 m
2026
76.0 m

SEC (XBRL)· 27 Mar 2026verified

Current assets
2024
226.0 m
2025
164.9 m
2026
119.7 m

SEC (XBRL)· 27 Mar 2026verified

Property, plant & equipment, net
2024
54.3 m
2025
52.6 m
2026
46.4 m

SEC (XBRL)· 27 Mar 2026verified

Goodwill
2024
—
2025
—
2026
—

SEC (XBRL)· 28 Mar 2023verified

Intangibles (excl. goodwill)
2024
7.6 m
2025
0
2026
—

SEC (XBRL)· 28 Mar 2025verified

Total assets
2024
380.8 m
2025
306.7 m
2026
234.0 m

SEC (XBRL)· 27 Mar 2026verified

Accounts payable
2024
14.2 m
2025
17.2 m
2026
16.2 m

SEC (XBRL)· 27 Mar 2026verified

Long-term debt
2024
—
2025
0
2026
—

SEC (XBRL)· 11 Sept 2025verified

Current liabilities
2024
58.3 m
2025
58.0 m
2026
50.5 m

SEC (XBRL)· 27 Mar 2026verified

Total liabilities
2024
120.9 m
2025
127.7 m
2026
102.4 m

SEC (XBRL)· 27 Mar 2026verified

Equity
2024
259.9 m
2025
179.0 m
2026
131.6 m

SEC (XBRL)· 27 Mar 2026verified

Cash flow · USD

Operating cash flow
2024
48.0 m
2025
-14.1 m
2026
-10.0 m

SEC (XBRL)· 27 Mar 2026verified

Capex
2024
3.8 m
2025
10.4 m
2026
3.3 m

SEC (XBRL)· 27 Mar 2026verified

Free cash flow
2024
44.2 m ≈
2025
-24.5 m ≈
2026
-13.3 m ≈

SEC (XBRL)· 27 Mar 2026derived

Investing cash flow
2024
-13.8 m
2025
-10.4 m
2026
-1.5 m

SEC (XBRL)· 27 Mar 2026verified

Financing cash flow
2024
-3.5 m
2025
-22.5 m
2026
-233.0 k

SEC (XBRL)· 27 Mar 2026verified

Share repurchases
2024
2.2 m
2025
21.8 m
2026
0

SEC (XBRL)· 27 Mar 2026verified

Computed indicators

Growth

Revenue growth (YoY)
-15.4%
computed by olivLawFY 2026
Revenue CAGR 3Y
-18.6%
computed by olivLawFY 2023 → FY 2026
Revenue CAGR 5Y
-10.5%
computed by olivLawFY 2021 → FY 2026
EBIT growth (YoY)
unavailable
the base of the ratio is not positive
Net income growth (YoY)
unavailable
the base of the ratio is not positive
Net income CAGR 3Y
unavailable
the base of the ratio is not positive
Net income CAGR 5Y
unavailable
the base of the ratio is not positive
EPS growth (YoY)
unavailable
the base of the ratio is not positive
EPS CAGR 3Y
unavailable
the base of the ratio is not positive
EPS CAGR 5Y
unavailable
the base of the ratio is not positive
FCF growth (YoY)
unavailable
the base of the ratio is not positive

Profitability

Gross margin
50.4%
computed by olivLawTTM to 01 Aug 2026
EBITDA margin
-1.0%
computed by olivLawTTM to 01 Aug 2026
EBIT margin
-3.6%
computed by olivLawTTM to 01 Aug 2026
Net margin
-3.7%
computed by olivLawTTM to 01 Aug 2026
FCF margin
10.7%
computed by olivLawTTM to 01 Aug 2026

Returns

ROE
-7.4%
computed by olivLawTTM to 01 Aug 2026 · balance sheet at 01 Aug 2026
ROA
-4.0%
computed by olivLawTTM to 01 Aug 2026 · balance sheet at 01 Aug 2026
ROIC
unavailable
input data missing
ROCE
-5.3%
computed by olivLawTTM to 01 Aug 2026 · balance sheet at 01 Aug 2026
Payout ratio (EPS)
unavailable
input data missing
Payout ratio (FCF)
unavailable
input data missing

Balance sheet

Net debt
unavailable
input data missing
Net debt / EBITDA
unavailable
input data missing
Debt / equity
unavailable
input data missing
Interest coverage
unavailable
the reported interest expense is far older than the latest period (the filer changed its XBRL tag): a stale figure is not used

Liquidity

Current ratio
2.4x
computed by olivLawbalance sheet at 01 Aug 2026
Quick ratio
1.1x
computed by olivLawbalance sheet at 01 Aug 2026
Cash ratio
0.7x
computed by olivLawbalance sheet at 01 Aug 2026

Cash

Operating cash flow
31.0 m USD
computed by olivLawTTM to 01 Aug 2026
Capital expenditure
1.7 m USD
computed by olivLawTTM to 01 Aug 2026
Free cash flow
29.3 m USD
computed by olivLawTTM to 01 Aug 2026
FCF conversion
unavailable
insufficient data
Cash conversion
unavailable
insufficient data

Efficiency

Days sales outstanding
20 days
computed by olivLawTTM to 01 Aug 2026 · balance sheet at 01 Aug 2026
Days inventory outstanding
223 days
computed by olivLawTTM to 01 Aug 2026 · balance sheet at 01 Aug 2026
Days payables outstanding
48 days
computed by olivLawTTM to 01 Aug 2026 · balance sheet at 01 Aug 2026
Cash conversion cycle
194 days
computed by olivLawTTM to 01 Aug 2026 · balance sheet at 01 Aug 2026

Market and valuation

Market capitalisation
216.0 m USD
computed by olivLawbalance sheet at 01 Aug 2026
Enterprise value
unavailable
input data missing
Market cap / net income TTM
unavailable
insufficient data
P/E (TTM)
unavailable
insufficient data
Earnings yield
-4.9%
computed by olivLawTTM to 01 Aug 2026
P/B
1.6x
computed by olivLawbalance sheet at 01 Aug 2026
P/S
0.8x
computed by olivLawTTM to 01 Aug 2026 · balance sheet at 01 Aug 2026
EV/EBITDA
unavailable
input data missing
EV/EBIT
unavailable
input data missing
EV/Sales
unavailable
input data missing
P/FCF
7.4x
computed by olivLawTTM to 01 Aug 2026 · balance sheet at 01 Aug 2026
FCF yield
13.6%
computed by olivLawTTM to 01 Aug 2026 · balance sheet at 01 Aug 2026
Dividend yield
unavailable
no dividend in the structured statements; a missing line is not a confirmed zero
Shareholder yield (distributions)
0.0%
computed by olivLawTTM to 01 Aug 2026 · balance sheet at 01 Aug 2026

1 indicators that do not apply to the sector.

Valuation

olivLaw classification

Insufficient data
What is missing
  • indicators available: 5 of at least 6
  • score weight coverage: 33.3% of at least 60%
  • valuation methods computed: 0 of at least 1

A scoring methodology on indicators and valuation, not investment advice.

Closing price

7.53 USD

04 Nov 2026Source: olivLaw, closing series

Market cap: 216.0 m USD

Key indicators

Market capitalisation
216.0 m USD
computed by olivLawbalance sheet at 01 Aug 2026
P/E (TTM)
unavailable
insufficient data
P/B
1.6x
computed by olivLawbalance sheet at 01 Aug 2026
EV/EBITDA
unavailable
input data missing
ROE
-7.4%
computed by olivLawTTM to 01 Aug 2026 · balance sheet at 01 Aug 2026
Net margin
-3.7%
computed by olivLawTTM to 01 Aug 2026
Revenue growth (YoY)
-15.4%
computed by olivLawFY 2026
Dividend yield
unavailable
no dividend in the structured statements; a missing line is not a confirmed zero

Coverage and freshness

31/37 reporting lines present
Latest full fiscal year: 2026
Latest reported period: 01 Aug 2026
Latest balance sheet date: 01 Aug 2026
Share count (cover of the latest filing), as of: 08 Sept 2026
Source: SEC (XBRL)published 15 Sept 2026
verified 2535derived 180

Score by group

33% · Insufficient data

Estimated value range

unavailable — no valuation method could be computed

Valuation assumptions are editorial choices, not measured; beta is not measured.

Valuation methods

  • DCF (discounted cash flow)unavailable · the reported interest expense is far older than the latest period (the filer changed its XBRL tag): a stale figure is not used
  • Peers: EV/EBITDAunavailable · net debt missing: EV cannot be bridged to equity (missing debt is not zero)
  • Peers: P/Eunavailable · the base of the ratio is not positive
  • Dividend discount (DDM)unavailable · the company pays no dividend: a dividend model needs an explicit initiation assumption

no valuation method could be computed

Multiple comparisons use the SIC vertical: Leather products (SIC 31xx)

Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.

Assumptions (illustrative, editorial)

Risk-free rate
4.3%
Equity risk premium
5.0%
Beta (default)
1.00
Cost of equity
9.3%
Terminal growth
2.5%

Factor scorecard

Insufficient data

Minimum-evidence gate: indicators available: 5 of at least 6; score weight coverage: 33.3% of at least 60%; valuation methods computed: 0 of at least 1

FactorValueScoreWeight used
ROIC · Qualityunavailableunavailable—
Net margin · Quality-3.7%0 (vs peers)19%
FCF conversion · Qualityunavailableunavailable—
Revenue CAGR 3Y · Growth-18.6%0 (on a fixed band)25%
EPS CAGR 3Y · Growthunavailableunavailable—
Net debt / EBITDA · Balance sheetunavailableunavailable—
Interest coverage · Balance sheetunavailableunavailable—
Current ratio · Balance sheet2.4x100 (on a fixed band)13%
P/E (TTM) · Valuationunavailableunavailable—
EV/EBITDA · Valuationunavailableunavailable—
FCF yield · Valuation13.6%100 (on a fixed band)25%
Shareholder yield (distributions) · Returns0.0%0 (on a fixed band)19%
Payout ratio (FCF) · Returnsunavailableunavailable—

Factors without a value were dropped; the remaining weights were renormalised.

Score groups

  • Balance sheet· partial100/100 · 1/3 factors with a value
  • Growth· partial0/100 · 1/2 factors with a value
  • Quality· partial0/100 · 1/3 factors with a value
  • Returns· partial0/100 · 1/2 factors with a value
  • Valuation· partial100/100 · 1/3 factors with a value

A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.

Memo

VERA BRADLEY, INC. (VRA). Latest full fiscal year: 2026; data up to 2026-08-01.

Figures computed from the financial statements: revenue 269.7 m USD in 2026; YoY growth -15.4%; net margin -3.7%; ROE -7.4%.

Valuation cannot be computed from the available data.

Insufficient data for a verdict (indicators available: 5 of at least 6; score weight coverage: 33.3% of at least 60%; valuation methods computed: 0 of at least 1).

Text generated deterministically from the figures shown; no language model. Not investment advice.

What supports the thesis

  • Current ratio: 2.4x
  • FCF yield: 13.6%

What contradicts it

  • Net margin: -3.7%
  • Revenue CAGR 3Y: -18.6%
  • Shareholder yield (distributions): 0.0%

Not assessed (insufficient data or a ratio without meaning): ROIC, FCF conversion, EPS CAGR 3Y, Net debt / EBITDA, Interest coverage, P/E (TTM), EV/EBITDA, Payout ratio (FCF).

Versus the vertical median

Leather products (SIC 31xx) · same major group (2-digit SIC) · compared with 9 companies

Multiples and returns vs the median

P/E
—
vertical median 17.2x
EV/EBITDA
—
vertical median 12.3x
P/S
0.8x
vertical median 0.8x
at median
P/B
1.6x
vertical median 3.7x
below median (−55.4%)
ROE
-7.4%
vertical median 14.9%
below median (−149.3%)
Net margin
-3.7%
vertical median 5.5%
below median (−165.9%)
EBIT margin
-3.6%
vertical median 7.5%
below median (−148.2%)
Revenue YoY
-15.4%
vertical median 8.6%
below median (−279.1%)
Net debt/EBITDA
—
vertical median 1.9x
Dividend yield
—
vertical median 1.7%

Price rebased to 100 (monthly, 5 years)

Companies in the vertical

Market capP/EROENet marginRevenue YoY1A / 3A
TPRTapestry, Inc.25.0 bn17.2197.1%19.1%+14.2%+15% / +296%
SHOOSteven Madden, Ltd.3.4 bn22.916.7%5.4%+11.0%+12% / +24%
CPRICapri Holdings Limited2.2 bn12.0—6.1%−4.1%−16% / −56%
WWWWolverine World Wide, Inc.1.9 bn18.227.1%5.5%unavailable+45% / +174%
CALCaleres, Inc507.6 m9.98.2%1.8%+1.3%+26% / −52%
RCKYRocky Brands, Inc.411.2 m12.013.2%6.6%+6.2%+80% / +89%
VRAVera Bradley, Inc.216.0 m—-7.4%-3.7%−15.4%+222% / +2%
TLFTandy Leather Factory, Inc18.6 m—-3.2%-2.1%+2.6%−17% / −45%
BIRKBirkenstock Holding plc——13.0%16.6%+16.2%−14% / −19%
FMFCKandal M Venture Limited—366.076.7%1.2%+23.0%−85% / unavailable

1- and 3-year price returns: for VRA from daily closes (the same as the performance table), for the other companies from month-end closes.

olivLaw engine forecast

The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.

The engine has no published run for this company yet.

Valuation scenarios (editable assumptions)

Illustrative scenarios

Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.

Bear
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Base
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Bull
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Nothing is saved.

Estimated price (USD)

Estimated priceBearBaseBull
1 years
insufficient data
Total return unavailable · Per year unavailable
insufficient data
Total return unavailable · Per year unavailable
insufficient data
Total return unavailable · Per year unavailable
3 years
insufficient data
Total return unavailable · Per year unavailable
insufficient data
Total return unavailable · Per year unavailable
insufficient data
Total return unavailable · Per year unavailable
5 years
insufficient data
Total return unavailable · Per year unavailable
insufficient data
Total return unavailable · Per year unavailable
insufficient data
Total return unavailable · Per year unavailable
What moves the 3-year price the most

    AI analysis

    AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.

    In brief

    Vera Bradley designs and sells handbags, luggage and accessories under its own brand from Fort Wayne, Indiana, a recognized name in leather and textile goods. The company is in a restructuring called Project Sunshine, and net revenues in fiscal 2026 fell to 269.7 million USD 1, while the second quarter of fiscal 2027 showed net revenue growth of 1.1% 3.

    SWOT

    Strengths

    • A recognized brand with distinctive patterns and colors, a loyal customer base and a strong e-commerce network 1.
    • Large cash reserves and no debt in the second quarter of fiscal 2027 give flexibility during the transformation 3.
    • The Direct segment showed a gradual recovery, with comparable sales growing in the latest quarter 3.

    Weaknesses

    • Net revenues declined in fiscal 2026 and operating losses persisted 1.
    • The wholesale segment fell sharply, and rebuilding it depends on a new leadership team 3.
    • Reliance on stores in regional shopping centers exposes the company to falling traffic in those locations 1.

    Opportunities

    • If Project Sunshine meets its goals, the company could revive demand for its core products and licensed collaborations 12.
    • Growing e-commerce and licensing partnerships could widen reach without large spending on new stores 1.
    • Better margins in outlets and direct sales could support long-term profitability 2.

    Threats

    • Weak discretionary spending and uncertain trade and tariff policy could reduce demand for the company's products 1.
    • Competitive pressure from marketplaces and liquidation channels could affect prices and margins 1.
    • Fixed lease obligations and the risk of closing stores could weigh on financial results 1.

    Risks

    • Execution of Project Sunshinehigh

      If the transformation does not deliver the expected results, sales and operating performance could be adversely affected 1.

    • Demand forecasting and inventoryhigh

      Errors in forecasting demand could lead to excess stock, markdowns and lower margins 1.

    • Dependence on shopping centersmedium

      A decline in traffic at regional malls could reduce sales in physical stores 1.

    • Lease costsmedium

      Long-term lease contracts can create financial obligations even for stores that are closed 1.

    • Trade policy and tariffsmedium

      Tariffs and changes in trade relations could raise import costs and reduce profitability 12.

    Investment thesis

    What would need to be true (bull case)

    • Growth in direct sales in the second quarter of fiscal 2027 and lower inventory could signal a faster recovery if the trend continues 3.
    • Large cash reserves without debt give the company room to invest in its brand and e-commerce during the transformation 3.
    • A recognized brand and a loyal customer base could support a long-term revenue recovery 1.

    What would break the thesis

    • Net revenues fell in fiscal 2026 and operating losses persisted, which could point to structural difficulties 1.
    • The wholesale segment declined sharply, and its rebuilding depends on the success of a new management team 3.
    • If discretionary spending stays weak, the sales guidance could prove difficult to reach 13.

    What to watch

    • Direct and comparable sales trends, especially in outletsQ3 2027
    • Delivery against the sales guidance of 255 to 270 million USD2027
    • Gross margin improvement and reduction of the non-GAAP operating loss by at least 50%2027

    Products, market & competition

    AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.

    The business

    Vera Bradley designs handbags, luggage, travel items, fashion and home accessories, founded in 1982 by two friends in Fort Wayne, Indiana 1. The company reports two segments: VB Direct, which covers its full-line and outlet stores, e-commerce sites and direct-to-consumer marketplaces, and VB Indirect, which sells to about one thousand specialty stores, department stores and liquidators, along with licensing agreements 1. In September 2026 the company reported growth in the Direct segment and a sharp decline in the Indirect segment 3.

    Market context

    The market for handbags and fashion accessories is sensitive to discretionary consumer spending, and the company notes that inflation and macroeconomic pressures have weighed on spending 12. The bag category remained the largest part of sales at 45.2% of revenues in fiscal 2026 1. The second quarter of fiscal 2027 suggests a moderate demand recovery, but the fiscal 2027 guidance of sales between 255 and 270 million USD 3 could indicate stabilization rather than rapid growth.

    Trends

    • Project Sunshinetailwind

      The five-pillar transformation program Project Sunshine aims to strengthen the brand, reorganize e-commerce and outlets, and streamline the organization 12. If upcoming quarters confirm growth in direct sales, this program could support a recovery.

    • Inflation and tariffsheadwind

      The company points to inflation, tariffs and rising digital media costs as factors affecting consumer spending and margins 12. Tariff refunds lifted the gross margin in the second quarter of fiscal 2027, but these effects are one-time and cannot be treated as durable 3.

    • Closing underperforming storesmixed

      The company closed thirteen stores in fiscal 2026 and plans further closures of unprofitable locations, bringing the store count down to 115 1. Closures can lower fixed costs but also create lease exit costs.

    • Improved cash positiontailwind

      In the second quarter of fiscal 2027 the company reported inventory down 28.4% from the prior year and cash of 34.2 million USD with no debt 3. This financial discipline could support brand investment, even though sales remain below earlier levels.

    Competitive position

    Vera Bradley competes with other handbag, luggage and accessory brands in specialty stores, department stores, online marketplaces and its own direct channel. The company cites competition as a factor affecting comparable sales and pricing 1. Competitive pressure in the outlet segment and on marketplaces could affect margins.

    • Department stores and specialty chains

      Retailers in the wholesale channel that sell bags and accessories and compete with the company's Indirect segment 1.

    • Online marketplaces and direct sellers

      E-commerce platforms selling similar products that affect traffic and conversion on the company's websites 1.

    • Liquidation traders

      Inventory liquidators that absorb retired merchandise and influence resale prices in the outlet channel 1.

    • Other fashion and accessories brands

      Companies in the accessories and travel goods categories competing for consumers' discretionary budgets 1.

    News & filings

    In the press

    SEC filings

    Sources

    1. [1] Form 10-K, fiscal year ended 2026-01-31 · SEC / Vera Bradley, Inc. · 27 Mar 2026
    2. [2] Form 10-Q, quarter ended 2026-08-01 · SEC / Vera Bradley, Inc. · 15 Sept 2026
    3. [3] Form 8-K, results release (exhibit 99.1) · SEC / Vera Bradley, Inc. · 15 Sept 2026

    Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.