Wednesday 23 May 2012

Why this Stock of retail is crushed - Motley Fool

Shares of Vera Bradley (Nasdaq: ARV) reached a new 52-week low, last week and continued to trade lower yesterday-$22.59 per share fall Monday at noon. See how the fashion house arrived and if the stock market will continue to slide.

How she got here
The company designs, produces and sells casual bags & accessories for women under the brand Vera Bradley. Known for her colourful prints and its patterns, Vera Bradley generates approximately 460 million of annual sales. Unfortunately, the stock is down more than 54% in the past 12 months, despite the assignment of respectable revenue and net income growth.

Vera Bradley sells its products through its own full-price stores, independent retailers, exit sites and online at Verabradley.com. The stock currently trades at 11 times earnings, but we'll see how he stacks industry rivals.

VRA Chart

Data of the ARVS by YCharts

According to these results, shares of Vera Bradley continue to lose value, then that competitors as coach designer handbag mounted higher.

CompanyP/EOperating margin (TTM)Source: Yahoo! Finance and Finviz. TTM = end of 12 months.

Operating margin is an important measure because it gives us a better idea of the overall profitability of the company, already the margin the better. The industry average is 7%, both Vera Bradley and coach boast the operating margins to 20% and 31%, respectively.

While Liz Claiborne margins are far from ideal, the company should be profitable this year even after almost five years of decline, according to Bloomberg. During this time, Perry Ellis is a choice by my colleagues Fool Ron gross month last on the Motley Fool radio show money.

What the future
Following preppy, Vera Bradley's cult should help move sales forward in the coming quarters. However, there are many other stocks of detail with promising bulls who are not volatile temperament manifested in the actions of Vera Bradley. Click here to discover high Stock of the Motley Fool for 2012 in this free report of key analysts of the idiot.


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