- Prachi Singh |
Vera Bradley, Inc. in its financial results statement for the fiscal second quarter and six months ended August 4, 2018 said that net revenues increased to 113.6 million dollars in the second quarter but declined to 200.2 million dollars for the six months compared to 208.6 million dollars in the prior year six month period ended July 29, 2017. The company also announced a new licensing agreement with Sunham Home Fashions (Sunham) for a bath collection launching in fall 2019.
Commenting on the company’s performance, Robert Wallstrom, Vera Bradley’s Chief Executive Officer, said in a statement: “We are very pleased that our second quarter results exceeded both expectations and last year’s performance, primarily driven by a higher-than-expected gross margin rate related to reduced clearance, improved full-price selling, and freight and shipping efficiencies, as well as better-than-expected SG&A expense management. Revenues were in line with our guidance.”
Highlights of Vera Bradley’s Q2 and H1 results
For the current year second quarter, the company posted net income of 9.3 million dollars or 0.26 dollar per diluted share compared to 2.2 million dollars or 0.06 dollar per diluted share. On a non-GAAP basis, excluding certain charges this year, the company’s prior year second quarter net income totalled 4.6 million dollars or 0.13 dollar per diluted share.
For the current year six months, the company posted net income of 7.9 million dollars or 0.22 dollar per diluted share compared to a net loss of 1.9 million dollars or 0.05 dollar per diluted share. On a non-GAAP basis, excluding certain charges, the company’s net income totalled 1.4 million dollars or 0.04 dollar per diluted share, for the prior year six months.
Vera Bradley announces expectations from Q3 and FY19
For the third quarter of fiscal 2019, the company expects net revenues of $98 to 103 million dollars compared to prior year third quarter revenues of 114.1 million dollars. This estimate reflects the movement of approximately 6 million dollars in revenues from the third quarter last year to the second quarter this year, related to promotional event timing shifts.
A gross profit percentage of 59 percent to 59.2 percent is expected compared to adjusted gross profit percentage of 56.8 percent (excluding charges) in the prior year third quarter. Diluted earnings per share of 0.14 dollar to 0.16 dollar are expected, based on diluted weighted-average shares outstanding of 35.7 million and an effective tax rate of 25 percent.
For fiscal 2019, company’s updated expectations include net revenues of 410 to 420 million dollars compared to 454.6 million dollars in fiscal 2018, a gross profit percentage of 57.6 percent to 57.9 percent compared to the adjusted gross profit percentage (before charges) of 56.1 percent in fiscal 2018 and diluted earnings per share of 0.55 dollar to 0.62 dollar, based on diluted weighted-average shares outstanding of 35.7 million and an effective tax rate of 25 percent. Excluding charges, adjusted diluted earnings per share totalled 0.60 dollar last year.