Vera Bradley posts marginal rise in Q2 revenues
4 Sep 2019
Vera Bradley, Inc. consolidated net revenues for the second quarter totalled 119.8 million dollars, which included 5.4 million dollars of net revenues from Pura Vida. Excluding Pura Vida, Vera Bradley net revenues of 114.4 million dollars, rose 0.7 percent over the prior year second quarter, below the company’s guidance range of 115 to 120 million dollars. Vera Bradley’s comparable sales increased 2.1 percent. Consolidated net income for the quarter was 5.9 million dollars or 17 cents per diluted share, while on a non-GAAP basis, consolidated net income totalled 8.7 million dollars or 25 cents per diluted share. In a separate release, the company also announced a partnership with Warner Bros. Consumer Products (WBCP), to create an exclusive Vera Bradley + Harry Potter collection which will debut in 2020.
Commenting on the company’s performance, Rob Wallstrom, Chief Executive Officer of Vera Bradley, said in a statement: “Vera Bradley’s comparable sales, full-price selling, and customer count were once again up in the quarter, and we successfully managed our expenses. However, retail remains challenging, particularly in the indirect channel as our partners continue to feel the pressure of a difficult environment, and our total sales fell slightly below our expectations.”
Vera Bradley updates outlook
Consolidated net revenues for the first half were 210.8 million dollars including 5.4 million dollars of net revenues from Pura Vida. Excluding Pura Vida, Vera Bradley net revenues totalled 205.4 million dollars compared to 200.2 million dollars in the prior year six-month period, while comparable sales increased 3.3 percent. Consolidated net income for the period was 3.4 million dollars or 10 cents per diluted share, while on a non-GAAP basis, consolidated net income totalled 6.9 million dollars or 20 cents per diluted share compared 7.9 million dollars or 22 cents per diluted share.
For the third quarter of fiscal 2020, the company expects consolidated net revenues of 122 to 129 million dollars, which includes estimated Pura Vida revenues of 23 to 25 million dollars compared to 97.7 million dollars in the last year’s third quarter, a consolidated gross profit percentage of 57.5 percent to 57.9 percent compared to 58.5 percent in the prior year third quarter and consolidated diluted earnings per share of 16 cents to 20 cents, reflecting accretion of approximately 5 cents from Pura Vida compared to net income of 4.2 million dollars or 12 cents per diluted share, in the prior year third quarter.
For fiscal 2020, the company has updated its expectations and expects consolidated net revenues of 490 to 505 million dollars, including estimated Pura Vida revenues of 65 to 70 million dollars compared to 416.1 million dollars in fiscal 2019, a consolidated gross profit percentage of 57.4 percent to 57.6 percent compared to 57.3 percent in fiscal 2019 and consolidated diluted earnings per share of 86 cents to 93 cents compared to 59 cents last year.
Picture:Vera Bradley website