Vera Bradley sales drop, the company names Jackie Ardrey as new CEO
Consolidated net revenues at Vera Bradley Inc. totaled 124 million dollars compared to 134.7 million dollars in the prior year third quarter ended October 30, 2021.
The company said, third quarter net income totaled 5.2 million dollars or 17 cents per diluted share. On a non-GAAP basis, net income totaled 6.3 million dollars or 20 cents per diluted share.
The company also said that Jackie Ardrey joined the company as president and CEO effective November 1, 2022, replacing retiring president and CEO Wallstrom. Ardrey also replaced Wallstrom on the company’s board of directors.
Commenting on the results, Rob Wallstrom, outgoing chief executive officer of the company, said: “We are pleased with our year-over-year improvement in third quarter non-GAAP EPS, largely driven by implementation of our targeted expense reductions. Total Company third quarter revenues were modestly above overall expectations.”
“Overall Pura Vida revenues continued to be negatively impacted by the shift in social and digital media effectiveness and rising digital media costs, and we experienced a decline in sales to wholesale accounts,” Wallstrom added.
Vera Bradley names Jackie Ardrey as president and CEO
Ardrey, the company added, is an accomplished, results-oriented leader with over 25 years of experience in multi-channel retail enterprises.
Between 2018 and October 2022, she held the post of president at home furnishings and seasonal décor catalogue and online retailer Grandin Road, part of the Qurate Retail Group.
Previously, Ardrey was CEO of Trading Company Holdings and senior vice president of merchandising and supply chain for iconic omnichannel gourmet food and gifting brand Harry and David.
Prior to that, she spent 14 years at multi-channel high-end children’s retailer Hanna Andersson in various roles of increasing responsibility, including senior vice president of merchandising, design, and wholesale.
“Although I have just been with the company a few short weeks, I am convinced that both our Vera Bradley and Pura Vida brands have untapped potential in the marketplace,” Ardrey commented.
Summary of Vera Bradley’s nine month results
Consolidated net revenues totaled 352.9 million dollars for the current year nine months ended October 29, 2022, compared to 390.9 million dollars in the prior year nine month period ended October 30, 2021.
The company’s consolidated net loss totaled 31.6 million dollars or loss of 1 dollar per diluted share. On a non-GAAP basis, net income for the nine months totaled 2.6 million dollars or 8 cents per diluted share.
Vera Bradley revises full year outlook
For the fourth quarter of fiscal 2023, the company expects consolidated net revenues of 136 to 141 million dollars compared to 149.6 million dollars in the prior year fourth quarter.
Consolidated diluted EPS is expected to be 16 cents to 20 cents compared to 17 cents in last year’s fourth quarter.
For Fiscal 2023, the company’s updated expectations include consolidated net revenues of 489 to 494 million dollars compared to 540.5 million dollars in fiscal 2022. Year-over-year Vera Bradley revenues are expected to decline between 6 percent and 7 percent, and Pura Vida revenues are expected to decline between 20 percent and 21 percent. Consolidated operating income is expected to be 11.6 dollars to 13.5 million dollars compared to 30.1 million dollars in fiscal 2022 and consolidated diluted EPS of 22 cents to 26 cents compared to 57 cents last year.
“While I expect the macro environment to remain unpredictable, our teams are focused, and our cash position and balance sheet remain solid. I look forward to working closely with our leadership teams to develop and execute solid growth plans; leverage our many opportunities, especially in merchandising and marketing; and deliver consistent, sustainable growth and value to our stakeholders over the long term,” Ardrey added.