Here are three stocks added to the Zacks Rank #5 (Strong Sell) List today:Vera Bradley, Inc. (VRA) is an apparel and accessories company. The Zacks Consensus Estimate for its current year earnings has been revised 39.6% downward over the last 60 days.Graphic Packaging Holding Company (GPK) is a packaging products company. The Zacks Consensus Estimate for its current year earnings has been revised 2.1% downward over the last 60 days.Koninklijke Philips N.V. (PHG) is a health technology company. The Zacks Con ...

Group 1 - The company is refocusing on the unique aspects of its quilted bags and accessories after a rebranding effort that did not resonate with consumers [1] - The rebrand has been identified as a factor that turned off consumers, prompting the company to return to its original product identity [1]

Group 1 - The quarter shows no change in trend, with ongoing challenges on the topline, although there is a sequential improvement [1] - Operational losses are close to breakeven when adjusted, occurring in one of the company's strongest seasonal quarters [1] - The investment approach focuses on operational aspects and long-term earnings power, rather than market-driven dynamics [1] Group 2 - The company emphasizes a buy-and-hold perspective, indicating that most calls will be holds by design [1] - A very small fraction of companies are considered a buy at any point in time, highlighting a cautious investment strategy [1] - Hold articles are intended to provide important information for future investors and introduce skepticism in a bullish market [1]

Group 1 - The quarter shows no change in trend, with ongoing challenges on the topline, although there is a sequential improvement [1] - Operational losses are close to breakeven when adjusted, occurring in one of the company's strongest seasonal quarters [1] - The investment approach focuses on operational aspects and long-term earnings power rather than market-driven dynamics [1] Group 2 - The company emphasizes a buy-and-hold perspective, indicating that most calls will be holds by design [1] - A very small fraction of companies should be considered a buy at any point in time, highlighting a cautious investment strategy [1] - Hold articles are intended to provide important information for future investors and introduce skepticism in a bullish market [1]

Core Viewpoint - Vera Bradley, Inc. reported disappointing earnings, with a significant miss on EPS estimates, indicating ongoing profitability challenges despite a slight revenue beat for the quarter [2][3][6] Financial Performance - The company reported an EPS of -$0.30, which was significantly below the estimated EPS of -$0.11, marking a negative surprise of 172.73% [2][6] - Revenue for the quarter was $62.25 million, slightly exceeding the Zacks Consensus Estimate by 0.91%, but down from $80.58 million in the same period last year [3][6] - Over the past four quarters, the company has only surpassed consensus EPS and revenue estimates once, indicating inconsistent financial performance [3] Financial Ratios - The company has a negative price-to-earnings (P/E) ratio of approximately -0.48, reflecting ongoing losses [4][6] - The price-to-sales ratio stands at about 0.16, suggesting the stock is valued at 16 cents for every dollar of sales [4] - The enterprise value to sales ratio is approximately 0.43, indicating the company's valuation relative to its revenue [4] Liquidity and Debt Position - The liquidity position appears strong, with a current ratio of approximately 2.52, indicating more than twice the current assets compared to current liabilities [5] - The enterprise value to operating cash flow ratio is negative at around -5.06, indicating potential challenges in generating cash flow from operations [5] - The debt-to-equity ratio is about 0.67, suggesting a moderate level of debt relative to equity [5]

Financial Performance - For the thirteen weeks ended November 1, 2025, net revenues decreased by $8.2 million, or 11.7%, to $62.3 million from $70.5 million in the prior year[157]. - Gross profit for the same period was $26.2 million, representing 42.1% of net revenues, compared to $38.4 million or 54.5% in the prior year[155]. - The operating loss from continuing operations for the thirteen weeks was $12.2 million, compared to a loss of $8.2 million in the prior year[155]. - For the thirty-nine weeks ended November 1, 2025, net revenues decreased by $47.6 million, or 20.5%, to $184.8 million from $232.4 million in the prior-year period[171]. - The operating loss from continuing operations for the thirty-nine weeks ended November 1, 2025, was $(12.2) million, an increase of $4.0 million, or 49.3%, from the prior-year period[164]. - For the thirty-nine weeks ended November 1, 2025, net loss from continuing operations was $(35.3) million, an increase of $21.9 million from $(13.4) million in the prior-year period[183]. Revenue Breakdown - VB Direct segment net revenues were $49.7 million, a decrease from $52.5 million, while VB Indirect segment revenues fell to $12.6 million from $18.0 million[156]. - For the thirteen weeks ended November 1, 2025, net revenues in the VB Direct segment decreased by $2.8 million, or 5.3%, to $49.7 million from $52.5 million in the prior-year period[158]. - VB Indirect segment net revenues decreased by $5.4 million, or 30.2%, to $12.6 million from $18.0 million in the prior-year period, primarily due to a decrease in specialty and key account orders[160]. - VB Direct segment net revenues for the thirty-nine weeks ended November 1, 2025, decreased by $27.9 million, or 15.4%, to $153.3 million, with comparable sales decreasing by 16.1%[172]. Expenses and Profitability - Selling, general, and administrative expenses (SG&A) were $38.7 million, accounting for 62.1% of net revenues, compared to $46.7 million or 66.3% in the prior year[155]. - Selling, General, and Administrative (SG&A) expenses decreased by $8.0 million, or 17.2%, to $38.7 million, with SG&A as a percentage of net revenues decreasing to 62.1% from 66.3%[162]. - Gross profit for the thirteen weeks ended November 1, 2025, decreased by $12.2 million, or 31.8%, to $26.2 million, with gross margin decreasing to 42.1% from 54.5% in the prior-year period[161]. - Gross profit for the thirty-nine weeks ended November 1, 2025, decreased by $34.7 million, or 29.1%, to $84.5 million, with gross margin decreasing to 45.7% from 51.3%[174]. Cash Flow and Financing - Net cash used in operating activities for the thirty-nine weeks ended November 1, 2025, was $27.3 million, a decrease from $35.8 million for the same period in 2024, primarily due to a net loss of $(50.5) million, which increased by $35.7 million year-over-year[188]. - Net cash used in investing activities was $2.0 million for the thirty-nine weeks ended November 1, 2025, down from $6.1 million in the prior year, attributed to $1.0 million proceeds from the sale of Pura Vida and a $3.0 million decrease in property, plant, and equipment spending[190]. - Net cash provided by financing activities was $9.8 million for the thirty-nine weeks ended November 1, 2025, compared to net cash used of $21.9 million in the prior year, mainly due to no common stock repurchases in the current year versus $21.2 million in the prior year[191]. - As of November 1, 2025, the Company had $10.0 million in borrowings outstanding and $65.0 million available under the Credit Agreement, compared to no borrowings and $75.0 million availability as of February 1, 2025[194]. - The Credit Agreement allows for an increase in the aggregate principal amount by up to $50.0 million, providing flexibility for financing general corporate purposes[192]. Strategic Initiatives and Market Conditions - The company is focusing on five key strategic initiatives to enhance brand focus, digital ecosystem, outlet strategy, go-to-market processes, and organizational structure[138][140][142]. - The company is actively managing the impact of elevated tariff costs and ongoing inflationary pressures affecting consumer discretionary spending[143]. - Comparable sales, including e-commerce, decreased by 5.8% for the thirteen weeks ended November 1, 2025, compared to a decrease of 27.2% in the prior year[156]. - The company completed the sale of Pura Vida on March 31, 2025, which was classified as discontinued operations[146]. - The total number of stores open at the end of the period was 117, with one store closed during the thirteen weeks[156]. - The effective tax rate for the thirteen weeks ended November 1, 2025, was (0.5)%, compared to (63.8)% for the prior-year period, primarily due to a full valuation allowance against net deferred tax assets[169]. - The Company has not experienced any material changes in market risks as of November 1, 2025[200]. - There were no material changes to cash requirements outside the ordinary course of business as of November 1, 2025[195]. - The Company reported a loss on the sale of business of $15.2 million, impacting cash flow from operating activities[188]. - The inventory reserve charge was $5.9 million, contributing to the changes in cash used in operating activities[188].

Vera Bradley (VRA) came out with a quarterly loss of $0.3 per share versus the Zacks Consensus Estimate of a loss of $0.11. This compares to a loss of $0.27 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -172.73%. A quarter ago, it was expected that this handbag and accessories company would post a loss of $0.15 per share when it actually produced a loss of $0.02, delivering a surprise of +86.67%.Over the last four quarters, ...

The S&P 500 slipped 0.4 per cent in early trade, moving further away from its October record high. The Dow Jones Industrial Average rose 233 points, or 0.5 per cent, while the Nasdaq Composite fell 0.7 per cent, according to AP.Oracle was among the biggest drags on the market, sliding 14.5 per cent after its quarterly revenue growth of 14 per cent came in below expectations despite stronger-than-expected profit. Investors also questioned whether the company’s heavy spending on artificial intelligence (AI) w ...

Core Viewpoint - Vera Bradley, Inc. is experiencing challenges in its turnaround efforts, as evidenced by a significant margin collapse and increased operating losses, despite a slight increase in quarterly sales [1][2] Financial Performance - The company reported an adjusted third-quarter loss of $0.30 per share, which was worse than the expected loss of $0.11 per share [1] - Quarterly sales reached $62.253 million, surpassing the market expectation of $61.686 million [1] Segment Performance - The Direct segment revenues were $49.7 million, a decrease of 5.3% from $52.5 million in the same quarter last year, with comparable sales down 5.8% due to reduced traffic and conversion in outlet channels [3] - The Indirect segment revenues fell to $12.6 million, a 30.2% decline from $18.0 million in the prior-year quarter, primarily due to reduced orders from specialty and key accounts [3] Margins, Profitability, and Cash Position - Gross profit was $26.2 million, representing 42.1% of net revenues, down from $38.4 million or 54.5% of net revenues in the previous year [4] - The adjusted operating loss from continuing operations was $11.1 million, compared to a loss of $5.0 million in the prior year [4] - Cash and cash equivalents as of November 1, 2025, totaled $10.7 million, down from $12.3 million at the end of the previous year's third quarter [5] Strategic Initiatives - The company is implementing a transformation strategy branded as Project Sunshine, which focuses on operational excellence and reclaiming the brand's joyful optimism [2] - The relaunch of iconic styles, such as the Original 100 Bag and the Vera and Glenna Totes, is seen as a positive step towards sustainable growth, although significant work remains [6] Stock Performance - Vera Bradley's shares fell by 20.47% to $1.71, nearing its 52-week low [7]

Financial Data and Key Metrics Changes - For Q3 fiscal 2026, consolidated revenues were $62.3 million, a decrease of 11.7% compared to the prior year [8][26] - Net loss from continuing operations was $8.3 million, or $0.30 per diluted share, compared to a loss of $3.7 million, or $0.13 per diluted share in the previous year [27][28] - Gross margin for the quarter was 41.7%, down from 54.5% in the prior year, primarily due to an inventory write-down [29][30] - SG&A expenses decreased to $37.4 million, or 60.0% of net revenues, from $43.6 million, or 61.8% of net revenues in the prior year [30] Business Line Data and Key Metrics Changes - Direct segment revenues were $49.7 million, a 5.3% decrease from $52.5 million in the prior year [28][29] - Indirect segment revenues totaled $12.6 million, a 30.2% decrease from $18 million in the prior year, primarily due to a decline in specialty and key account orders [29] Market Data and Key Metrics Changes - The company opened five new stores and closed 14 since the prior year, impacting total revenues [29] - Inventory decreased by 24.3% year-over-year to $82.9 million, indicating improved inventory management [31][32] Company Strategy and Development Direction - The company is focused on five strategic pillars under "Project Sunshine," aimed at brand rejuvenation and operational excellence [5][9] - Key initiatives include sharpening brand focus, resetting go-to-market strategies, optimizing the digital ecosystem, and reimagining the outlet experience [6][7][20][22] - The company aims to engage both existing and new customers through innovative products and storytelling, while maintaining a focus on profitability and cash generation [12][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the transformation strategy, highlighting early wins in product innovation and brand storytelling [8][24] - The focus on product quality and customer engagement is expected to drive future growth, particularly with the upcoming spring-summer 2026 product launches [40][55] - Management acknowledged the challenges of re-engaging younger customers but sees potential in recent product offerings that resonate with this demographic [55] Other Important Information - The company is actively searching for a new CEO while continuing to implement Project Sunshine [25] - The recent appointment of a Chief Brand Officer is expected to enhance marketing efforts and customer engagement [55] Q&A Session Summary Question: What key signposts should be expected as Project Sunshine progresses into Q4 and 2026? - Management emphasized that product focus is crucial, with significant impacts expected from spring-summer 2026 product launches [39][40] Question: What has been the consumer response to Outlet 2.0 stores? - Early feedback has been positive regarding the store environment and customer journey, with performance in line with stores having more SKUs [46][47] Question: How can the company improve inventory productivity? - Management sees opportunities to improve inventory turns from less than two to a target of greater than two to three over the next 12-18 months [52] Question: How long will it take to attract a younger customer demographic? - Management acknowledged it will take time but is focused on re-engaging loyal customers while also targeting younger demographics through effective marketing and product offerings [55]