Vera Bradley posts 24 percent drop in Q1 turnover
3 Jun 2020
Consolidated net revenues at Vera Bradley, Inc. totalled 69.3 million dollars for the current year first quarter including 21.2 million dollars of net revenues from Pura Vida, a decrease of 23.9 percent over the prior year. Excluding Pura Vida, Vera Bradley net revenues totalled 48.1 million dollars, a decrease of 47.2 percent. The company said in a statement that Vera Bradley stores were closed approximately half of the first quarter due to the Covid-19 pandemic.
“The Covid-19 pandemic has affected nearly every family and business throughout the country over the last three months,” said the company’s Chief Executive Officer Rob Wallstrom, adding, “It will take time for consumer confidence, customer traffic, and shopping activity to return to pre-pandemic levels, but I am confident the actions we have taken will allow us to manage through this challenge and position us to emerge a stronger company and thrive over the long term.”
Vera Bradley’s Q1 net loss widens to 15.3 million dollars
For the first quarter, Vera Bradley’s consolidated net loss totalled 15.3 million dollars or 66 cents per diluted share, while on a non-GAAP basis, net loss totalled 10.2 million dollars or 31 cents per diluted share. For the prior year first quarter, the company posted a net loss of 2.4 million dollars or 7 cents per diluted share, while on a non-GAAP basis, the company posted a net loss of 1.8 million dollars or 5 cents per diluted share, in the prior year first quarter.
First quarter Vera Bradley direct segment revenues totalled 36.8 million dollars, a 48.2 percent decrease from 71.1 million dollars in the prior year first quarter primarily resulting from the company’s stores that were temporarily closed as a result of Covid-19. Ecommerce sales included in direct segment revenues increased 20.5 percent over last year. The company closed 14 full-line stores and opened one factory outlet store in the last twelve months.
Vera Bradley indirect segment revenues totalled 11.2 million dollars, a 43.5 percent decrease, primarily due to a reduction in orders from specialty and department stores as well as other key accounts, largely related to Covid-19, as well as a reduction in the number of specialty and department store accounts. Pura Vida segment revenues totalled 21.2 million dollars.
On May 5, 2020, the company began reopening its Vera Bradley stores in a phased approach, with 18 out of 83 full-line stores and 40 of 64 factory stores opened as of the end of May. The company anticipates the majority of the store base will be open by the end of June.