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Vera Bradley announces drop in Q4 sales and earnings

By Prachi Singh

11 Mar 2021

Consolidated net revenues at Vera Bradley totalled 142.4 million dollars for the fourth quarter compared to 156.9 million dollars in the prior year fourth quarter, while consolidated net income totalled 7.9 million dollars or 23 cents per diluted share. On a non-GAAP basis, Vera Bradley, Inc.’s consolidated net income for the fourth quarter totalled 10.5 million dollars or 31 cents per diluted share.

“In spite of an extremely challenging overall retail environment and a very difficult handbag and accessories market in particular, we delivered some best-in-class operating results. On a non-GAAP basis, excluding certain items, our fiscal year operating income was nearly 90 percent to last year, which was a strong performance in light of the unprecedented pandemic-related headwinds. For the year, we expanded our consolidated gross margin rate primarily through product innovation and more full-priced selling,” said Rob Wallstrom, Chief Executive Officer of the company.

Highlights of Vera Bradley’s full year performance

Consolidated net revenues for the full year totalled 468.3 million dollars including 112.5 million dollars of net revenues from Pura Vida compared to 495.2 million dollars for fiscal 2020 which included 65.9 million dollars of net revenues from Pura Vida. Excluding Pura Vida, Vera Bradley net revenues totalled 355.8 million dollars compared to 429.3 million dollars in the prior year.

For the current fiscal year, Vera Bradley’s consolidated net income totalled 8.7 million dollars or 26 cents per diluted share, while on a non-GAAP basis, consolidated net income totalled 21.4 million dollars or 63 cents per diluted share.

Vera Bradley announces fiscal 2022 outlook

For Fiscal 2022, the company expects consolidated net revenues of 550 to 575 million dollars compared to 468.3 million dollars in fiscal 2021. Year-over-year Pura Vida revenues are expected to grow between 20 percent and 30 percent, and Vera Bradley revenues are expected to grow between 15 percent and 20 percent.

The company expects a consolidated gross profit percentage of 56 percent to 57 percent compared to 57 percent in fiscal 2021, consolidated operating income of 44 to 49 million dollars compared to 34 million dollars in fiscal 2021 and consolidated diluted EPS of 80 cents to 90 cents based on diluted weighted-average shares outstanding of 34.6 million compared to 63 cents last year.

Commenting on the organisational restructuring, Wallstrom added: “Vera Bradley and Pura Vida are the two lifestyle brands currently under our Vera Bradley, Inc. umbrella. While I will continue as CEO of Vera Bradley, Inc., each brand will have their own leadership team that will focus on building customer engagement and expanding revenue, while protecting and cultivating the distinct ethos and entrepreneurial spirit of each unique brand.”

Image:Vera Bradley, Facebook