Vera Bradley NASDAQ
Vera Bradley (VRA) is a designer, producer, and retailer of accessories for
women. Its products include handbags, accessories and travel and leisure items.
The company's unique fashionstatement purses appeal to younger demographics in
a price range of $28 to $128. This design niche seemed very promising with the
company's IPO in October 2010 at $23. But after a quick peak above $50 in the
first half of 2011, it's been all down hill.
Drop That BagIn its June 5 earnings report, the handbag maker cut forecasts
and said its CEO was leaving as inventories were bulging, soaring 41% from a
year earlier. The stock dropped over 10% the next day, bouncing off of $19.50
as investors scooped up shares and prevented a new 52week low, which was
exactly one year ago today at $19.26.
"With wholesale revenues continuing
http://www.goldengoosesale.com/ to weaken and samestore sales
flattening out with just 85 stores, topline growth continues to come into
question," said an analyst from Sterne Agee.
The CEO switch did not impress analysts either with CEO Michael Ray's
pending departure coming just five months after CFO Jeff Blade left. But it was
the guidance which dampened sentiment the most. The company announced they
expect Q2 EPS of $0.31 to $0.33 on revenues of $123$126 million vs. analyst
consensus expectations of $0.39 on revenues of $136 million. VRA also lowered
its FY 2014 guidance, seeing EPS of $1.74$1.78 on revenues of $570$575 million.
Analysts were looking for EPS of $1.81 on revenues of $591 million.
Subsequently, analysts at Piper Jaffray, Wells Fargo and Baird all cut their
ratings and estimates on the stock. Here's how the forward view of earnings has
taken shape over the past year while VRA has frequently been a Zacks No. 5 Rank
Strong Sell or No. 4 Rank Sell.
As VRA sits near alltime lows just above $20, some investors may be looking
for Golden Goose Sneakers
Sale a turnaround. But until the earnings estimate picture
changes, it's probably best to wait.