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    Benign Growth For Vera Bradley, Inc. (NASDAQ:VRA) Underpins Stock's 28% Plummet

    Simply Wall St·12/13/2025 12:30:32
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    Vera Bradley, Inc. (NASDAQ:VRA) shareholders won't be pleased to see that the share price has had a very rough month, dropping 28% and undoing the prior period's positive performance. For any long-term shareholders, the last month ends a year to forget by locking in a 54% share price decline.

    Since its price has dipped substantially, Vera Bradley may be sending buy signals at present with its price-to-sales (or "P/S") ratio of 0.2x, considering almost half of all companies in the Luxury industry in the United States have P/S ratios greater than 0.8x and even P/S higher than 3x aren't out of the ordinary. However, the P/S might be low for a reason and it requires further investigation to determine if it's justified.

    We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free.

    See our latest analysis for Vera Bradley

    ps-multiple-vs-industry
    NasdaqGS:VRA Price to Sales Ratio vs Industry December 13th 2025

    What Does Vera Bradley's Recent Performance Look Like?

    Vera Bradley hasn't been tracking well recently as its declining revenue compares poorly to other companies, which have seen some growth in their revenues on average. It seems that many are expecting the poor revenue performance to persist, which has repressed the P/S ratio. So while you could say the stock is cheap, investors will be looking for improvement before they see it as good value.

    If you'd like to see what analysts are forecasting going forward, you should check out our free report on Vera Bradley.

    How Is Vera Bradley's Revenue Growth Trending?

    Vera Bradley's P/S ratio would be typical for a company that's only expected to deliver limited growth, and importantly, perform worse than the industry.

    In reviewing the last year of financials, we were disheartened to see the company's revenues fell to the tune of 11%. As a result, revenue from three years ago have also fallen 35% overall. Accordingly, shareholders would have felt downbeat about the medium-term rates of revenue growth.

    Looking ahead now, revenue is anticipated to slump, contracting by 17% during the coming year according to the only analyst following the company. Meanwhile, the broader industry is forecast to expand by 5.5%, which paints a poor picture.

    With this information, we are not surprised that Vera Bradley is trading at a P/S lower than the industry. Nonetheless, there's no guarantee the P/S has reached a floor yet with revenue going in reverse. Even just maintaining these prices could be difficult to achieve as the weak outlook is weighing down the shares.

    What We Can Learn From Vera Bradley's P/S?

    The southerly movements of Vera Bradley's shares means its P/S is now sitting at a pretty low level. Using the price-to-sales ratio alone to determine if you should sell your stock isn't sensible, however it can be a practical guide to the company's future prospects.

    With revenue forecasts that are inferior to the rest of the industry, it's no surprise that Vera Bradley's P/S is on the lower end of the spectrum. Right now shareholders are accepting the low P/S as they concede future revenue probably won't provide any pleasant surprises. Unless these conditions improve, they will continue to form a barrier for the share price around these levels.

    Before you settle on your opinion, we've discovered 3 warning signs for Vera Bradley (1 can't be ignored!) that you should be aware of.

    If strong companies turning a profit tickle your fancy, then you'll want to check out this free list of interesting companies that trade on a low P/E (but have proven they can grow earnings).