Vera Bradley's Q3 revenues increase, updates outlook
Third quarter net revenues at Vera Bradley, Inc. totalled 134.7 million dollars, an increase of 7.9 percent over the prior year third quarter. Consolidated net income totaled 5.8 million dollars or 17 cents per diluted share compared to 8.9 million dollars or 26 cents per diluted share last year.
For the nine month period, net revenues totalled 390.9 million dollars, an increase of 19.9 percent over the prior year nine-month period. Consolidated net income for the period totalled 12.7 million dollars or 37 cents per diluted share and on a non-GAAP basis, net income was 14 million dollars or 41 cents per diluted share. For the prior year nine months, net income totalled 0.8 million dollars or 2 cents per diluted share.
Commenting on the company’s performance, Rob Wallstrom, chief executive officer of Vera Bradley, Inc., said: “Like much of the industry, we continued to experience supply chain challenges and significantly increased freight expenses that put meaningful pressure on gross margin in the quarter. Even with the current supply chain challenges and delayed renewal of GSP, on a year-to-date basis, before certain items, non-GAAP EPS is ahead of last year and ahead of where we were in fiscal 2020, pre-pandemic.”
Review of Vera Bradley’s results
Current year third quarter Vera Bradley direct segment revenues totalled 86.6 million dollars, a 10.8 percent increase over the prior year third quarter. Comparable sales increased 7.8 percent over the prior year and 5.6 percent over fiscal 2020. The company permanently closed nine full-line stores and opened six factory outlet stores in the last twelve months.
Direct segment revenues for the current year nine-month period totalled $250.5 million dollars, a 27.7 percent increase over the prior year. Indirect segment revenues for the period totalled 53 million dollars, a 3.3 percent increase over 51.3 million dollars.
Indirect segment revenues for the third quarter totalled 20.9 million dollars, a 6.4 percent decrease from the prior year third quarter.
Pura Vida segment revenues totalled 27.2 million dollars, an 11.7 percent increase over the prior year, driven by an increase in sales to wholesale accounts.
Pura Vida segment revenues for nine months totalled 87.4 million dollars, an 11.5 percent increase over the prior year, primarily reflecting a rebound in wholesale account orders from the prior year that were negatively impacted by Covid-19.
Vera Bradley updates expectations for Q4
For the fourth quarter, the company expects consolidated net revenues of 155 to 160 million dollars compared to 142.4 million dollars in the prior year fourth quarter, a consolidated gross profit percentage of 51.6 percent to 52.1 percent compared to 54.7 percent in the prior year fourth quarter.
Vera Bradley expects consolidated diluted EPS of 24 cents to 29 cents based on diluted weighted-average shares outstanding of 34.4 million and an effective tax rate of approximately 21 percent compared to 31 cents in last year’s fourth quarter.
Based on fourth quarter expectations, for fiscal 2022, the company expects consolidated net revenues of 546 to 551 million dollars compared to 468.3 million dollars in fiscal 2021, consolidated diluted EPS of 65 cents to 70 cents based on diluted weighted-average shares outstanding of 34.2 million and an effective tax rate of approximately 21 percent compared to 63 cents last year.