Vera Bradley's Q4 revenues and earnings increase
12 Mar 2020
Consolidated net revenues at Vera Bradley totalled 156.9 million dollars for the fourth quarter including 35.5 million dollars of net revenues from Pura Vida), an increase of 32.8 percent over the prior year. Excluding Pura Vida, Vera Bradley net revenues totalled 121.4 million dollars, a 2.7 percent increase over the prior year fourth quarter, while comparable sales increased 2.4 percent for the quarter. The company said in a statement that consolidated net income totalled 12.5 million dollars or 37 cents per diluted share, while on a non-GAAP basis, excluding net charges, net income totalled 14.3 million dollars or 42 cents per diluted share including 8 cents attributable to Pura Vida, an increase of 68 percent.
Rob Wallstrom, Chief Executive Officer of Vera Bradley, noted: “Consolidated revenue and SG&A performance were in line with our guidance for the fourth quarter and the fiscal year although the gross margin rate fell below our expectations. In Fiscal 2019, the first stage of Vision 20/20 was to restore brand and company health. We reduced clearance revenues and restored full-price selling, delivered SG&A and cost of sales reductions, maximized retention of the company’s customer base, and generated cash from operations.”
Vera Bradley’s full year revenues increase by 19 percent including Pura Vida
The company added that consolidated net revenues totalled 495.2 million dollars for fiscal 2020 including 65.9 million dollars of net revenues from Pura Vida, an increase of 19 percent over last year. Excluding Pura Vida, Vera Bradley net revenues increased 3.2 percent to 429.3 million dollars, while comparable sales increased 3.4 percent for the fiscal year.
Consolidated net income for the year totalled 16 million dollars or 47 cents per diluted share. On a non-GAAP basis, excluding net charges, consolidated net income totalled 28.2 million dollars or 82 cents per diluted share including 16 cents attributable to Pura Vida for the partial year, an increase of 39 percent.
Vera Bradley expects rise revenue and earnings for 2021
For fiscal 2021, Vera Bradley’s expectations include consolidated net revenues of 555 to 585 million dollars including estimated Pura Vida revenues of 125 to 135 million dollars compared to 495.2 million dollars in fiscal 2020, a consolidated gross profit percentage of 56.7 percent to 56.9 percent compared to 56.6 percent in fiscal 2020, consolidated diluted earnings per share of 93 cents to 1.08 dollars, which includes 33 cents to 37 cents attributable to Pura Vida for the full year compared to 82 cents per share last year.
“The uncertainties in the global environment, particularly surrounding coronavirus and its potential supply chain and revenue implications, make our fiscal 2021 financial performance difficult to predict. As a result, we are only providing guidance for the full year, which does not reflect any future ramifications from COVID-19. We will not be providing quarterly guidance until we have more clarity on the situation,” added Wallstrom.