Vera Bradley Present strategy involve offering distinctive line of colorful, fashionable, patterned womens luggage, accessories and handbags, by reaching customers through retail stores, department stores, outlet stores and online stores. During 2011-2013 Vera Bradley net revenue were increasing sharply by 14.84%, and in 2014 the net revenue starts to decline by -5.31%. Also, the net income start grows from 2010-2013 and declined by 15% in 2014.
In 2010, Vera Bradley and Michael Kors started off with same gross profit margin 52%, by the time Michael Kors gross profit margin increased to 61% while Vera Bradley remained unstable and stopped at 55% in 2014. In 2012, Vera Bradley were increasing in percentage change of revenue show more content
Since 2011 Vera Bradley total debt to assetratio was 33% and it continue decreasing. By 2014 the company reach 0%, which mean the company at this point had no debt. In addition, the debt to equity ratio was very high in 2011 at 104%, and in 2014 since the company had no debt the ratio decrease until it reach 0%. Moreover, the coverage ratio confirms the same fact with a sharp rising ratio, this show how Vera Bradley is in appropriate financially strong position.
The activity ratio measures the efficiency of the company in using its resources. In 2015, Vera Bradley days of inventoryratio was 149.6 which is consider high and need to be reduce, as the lower the days of inventory ratio the high inventory management efficiency. In addition, the Inventory turn over reach 2.4 in 2015, but the company needs to improve the ratio to increase. Moreover, Vera Bradley has got 3.2% more efficient at turning over its inventory from 2013 to 2015.
SWOT show more content
Vera Bradley has lack of management depth and no clear strategic direction that was reflected in revenue declining over the past years. The company has short in financial resources to develop the business and follow promising initiatives. Vera Bradley offer high unit costs relatively to rivals, that gave customers the opportunity to shift to low price substitute. Also, the company offers too broad products line that dispersion customers decision to buy. Vera Bradley has lack of global distribution, there stores focused in United States and
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