Is Vera Bradley a Buy Near Its 2-Year Low?http://www.fool.com/investing/general/2013/09/14/is-vera-bradley-a-buy-near-its-two-year-low.aspx Michael Lewis
September 14, 2013
Trading around its two year low -- down 55% from its October 2011 highs -- fashion retailer Vera Bradley (NASDAQ: VRA) delivered estimate-beating results on Wednesday on both the top and bottom lines, but the stock still sank by double digits based on management's very cautious outlook for the remainder of the year -- a line that has been on the tongue of nearly every retail manager over the past couple of months. The thing is, Vera Bradley is a distinguished brand that consumers recognize well, and, in a better macro-spending environment, store traffic should normalize. Does this mean Vera Bradley shares are undervalued on this week's sell-off? Let's take a closer look to find out.
The top line grew modestly, but (again) ahead of analyst estimates. The company had sales of $125.4 million -- a 4% gain, and roughly $1 million ahead of estimates. E-commerce accounted for 22% of sales, a gain of 1% from the prior year. Management cited the usual factors -- weather conditions and economi