Vera Bradley reports Q1 net loss of 7 million dollars
Consolidated net revenues at Vera Bradley were 98.5 million dollars for the first quarter, while net loss totalled 7 million dollars or 21 cents per diluted share. On a non-GAAP basis, Vera Bradley’s net loss totalled 6.1 million dollars or 19 cents per diluted share.
“While total company first quarter revenues of 98.5 million dollars fell below our expectations and resulted in a net loss, before certain charges, of 19 cents per diluted share. For the balance of the year, we are taking decisive actions to strengthen the enterprise and remain highly focused on our two core brands.”
Review of Vera Bradley’s Q1 results
Current year first quarter Vera Bradley direct segment revenues totaled 61.6 million dollars, a 7.6 percent decrease from the prior year first quarter. Comparable sales declined 11.1 percent. The Company permanently closed six full-line stores and opened seven factory outlet stores in the last twelve months.
Vera Bradley indirect segment revenues totaled 17 million dollars, an 11.2 percent increase over the prior year first quarter.
Pura Vida segment revenues totaled 19.8 million dollars, a 26.8 percent decrease from the prior year first quarter.
First quarter consolidated gross profit totaled 52.5 million dollars or 53.3 percent of net revenues compared to 59.2 million dollars or 54.2 percent of net revenues, in the prior year first quarter.
The company’s consolidated operating loss totaled 8.2 million dollars or 8.4 percent of net revenues compared to an operating loss of 2 million dollars or 1.8 percent of net revenues, in the prior year first quarter. On a non-GAAP basis, the consolidated operating loss totaled 6.9 million dollars or 7 percent of net revenues compared to loss of 1.2 million dollars or 1.1 percent of net revenues, in the prior year.
Vera Bradley updates outlook
For fiscal 2023, the company expects consolidated net revenues of 490 to 505 million dollars compared to 540.5 million dollars in fiscal 2022. Year-over-year Vera Bradley revenues are expected to decline between 5 percent and 7 percent and Pura Vida revenues are expected to decline between 12 percent and 16 percent.
A consolidated gross profit percentage is expected to reach 54.5 percent to 55 percent compared to 53.3 percent in fiscal 2022.
Consolidated operating income is expected to reach 18.8 dollars to 25 million dollars compared to 30.1 million dollars in fiscal 2022. The company anticipates consolidated diluted EPS of 35 cents to 50 cents compared to 57 cents last year.