3. Vera Bradley (VRA) is a designer, producer, marketer and retailer of accessories for women including handbags, accessories, and travel and leisure items. It has a market cap of over $1.3 billion. The company sells its products through 48 retail stores in the U.S., eight outlet stores, 3,400 specialty retailers and online.
The company had ROA of 25.89% for the last 12 months, while total asset turnover ratio was 2.17. For the same period, ROE and ROCE were 67.84% and 34.40%, respectively. Currently, the stock is trading at 25 times earnings, compared to the industry P/E of 17.67, according to data compiled by Bloomberg.
For the third quarter ended in October, the company reported 32% increase in net revenue, or $29.5 million, to reach $121.1 million. Net income for the quarter was $13 million, or 32 cents per diluted share, compared to $6 million, or 17 cents in the prior year.Vera has opened 13 full-price and four outlet stores since the third quarter of last year, increased traffic in its e-commerce business, improved conversion rates in all channels, and saw a 7.4% increase in comparable-store sales. For the fourth quarter, the company expects net revenue to be in the range of $125 million to $130 million and diluted EPS of 44 cents to 47 cents. For fiscal 2012, the company expects net revenue of $451 million to $456 million and sees diluted earnings per share between $1.37 and $1.40. Of the 10 analysts covering the stock, eight recommend a buy and two rate a hold. Analysts polled by Bloomberg foresee the stock gaining an average 47.1% to $47.67 in the upcoming 12 months.
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