Vera Bradley, Inc. (Nasdaq: VRA) today announced its financial
results for the third quarter and nine months ended November 2,
2024.
In this release, Vera Bradley, Inc. or “the Company” refers to
the entire enterprise and includes both the Vera Bradley and Pura
Vida brands. Vera Bradley on a stand-alone basis refers to the Vera
Bradley brand.
Third Quarter Comments
Jackie Ardrey, Chief Executive Officer commented, “The third
quarter was extremely challenging as we remained in the early
stages of ‘Project Restoration’, our strategic initiative to
transform our business model and transition Vera Bradley’s brand
positioning. With the current consumer mindset focused on value, we
have more work ahead of us on our repositioning journey.
Importantly, we’ve made meaningful adjustments to our assortment
and value proposition in response to results and customer feedback.
I’m pleased to report that we are seeing steady progress with
several green shoots that have continued in the fourth quarter to
date.”
Ardrey continued, “With the launch of our Holiday assortments
late in the third quarter, and the strategic promotional
adjustments we executed, we are experiencing a steady trendline
improvement across the majority of our Vera Bradley
direct-to-consumer channels in Q4, as well as in our wholesale
channel. We are seeing strong customer response to heritage prints,
key giftable price point products and continued success in our
elevated product offerings. We also experienced a marked
improvement in our brand awareness and equity scores, and we
continued to broaden our reach with younger and higher income
household consumers.”
“We enter the fourth quarter with no debt and $13.7 million in
cash, and are prudently managing the business through a
conservative lens. With our brand restoration efforts well under
way, we remain agile and flexible for the remaining Holiday season,
continuing to drive strong business discipline, and pursuing our
vision to inspire people to be bold in their pursuits and brilliant
in their self-expression,” Ardrey continued.
“While this is a transformational period, we remain confident
that Project Restoration is the right path forward for the
long-term health and positioning of Vera Bradley. The combination
of the trendline business improvement, the upward trajectory in
brand scores, our broadening consumer reach, and the new inbound
interest generated for brand-right collaborations, validates our
strategic direction. We remain dedicated to returning the company
to long-term profitable growth and creating value for our
shareholders,” Ardrey concluded.
Summary of Financial Performance for the Third
Quarter
Consolidated net revenues totaled $80.6 million compared to
$115.0 million in the prior year third quarter ended October 28,
2023.
For the current year third quarter, Vera Bradley, Inc.'s
consolidated net loss totaled ($12.8) million, or ($0.46) per
diluted share. These results included pre-tax charges of $2.2
million of impairment charges, $0.7 million of Project Restoration
initiatives, $0.2 million of severance charges, and $0.2 million of
consulting and professional fees primarily associated with
strategic initiatives. These results also include a total tax
impact of $2.0 million associated with the pre-tax items listed
above, as well as a change in the annual estimated tax rate
associated with the projection of the Company's annual income in
the current fiscal quarter, resulting in a $5.3 million net of tax
impact. On a non-GAAP basis, Vera Bradley, Inc.’s consolidated
third quarter net loss totaled ($7.5) million, or ($0.27) per
diluted share.
For the prior year third quarter, Vera Bradley, Inc.’s
consolidated net income totaled $5.1 million, or $0.16 per diluted
share. These results included pre-tax charges of $0.7 million for
the amortization of definite-lived intangible assets, $0.3 million
of severance charges, and $0.2 million of consulting and
professional fees primarily associated with strategic initiatives.
These results also include a total tax impact of ($0.2) million
associated with the pre-tax items listed above, resulting in a $1.0
million net of tax impact. On a non-GAAP basis, Vera Bradley,
Inc.’s consolidated third quarter net income totaled $6.1 million,
or $0.19 per diluted share.
Summary of Financial Performance for the Nine
Months
Consolidated net revenues totaled $272.0 million for the current
year nine months ended November 2, 2024, compared to $337.5 million
in the prior year nine-month period ended October 28, 2023.
For the current year nine months, Vera Bradley, Inc.’s
consolidated net loss totaled ($15.2) million, or ($0.52) per
diluted share. These results included pre-tax charges comprised of
$2.2 million of impairment charges, $1.3 million for the
amortization of definite-lived intangible assets, $1.0 million of
severance charges, $1.0 million of Project Restoration initiatives,
$0.8 million of one-time vendor charges, and $0.6 million of
consulting and professional fees primarily associated with
strategic initiatives. These results also include a total tax
impact of ($1.9) million associated with the pre-tax items listed
above, as well as a change in the annual estimated tax rate
associated with the projection of the Company's annual income in
the current fiscal quarter, resulting in $5.0 million net of tax
impact. On a non-GAAP basis, Vera Bradley, Inc.’s current year
consolidated net loss for the nine months totaled ($10.2) million,
or ($0.35) per diluted share.
For the prior year nine months, Vera Bradley, Inc.’s
consolidated net income totaled $9.7 million, or $0.31 per diluted
share. These results included pre-tax charges comprised of $2.4
million of severance charges, $2.2 million for the amortization of
definite-lived intangible assets, and $0.6 million of consulting
and professional fees primarily associated with strategic
initiatives. These results also include a total tax impact of
($1.2) million associated with the pre-tax items listed above,
resulting in $4.0 million net of tax impact. On a non-GAAP basis,
Vera Bradley, Inc.’s consolidated net income for the nine months
totaled $13.7 million, or $0.44 per diluted share.
Third Quarter Details
Current year third quarter Vera Bradley Direct segment revenues
totaled $52.5 million, a 27.4% decrease from $72.3 million in the
prior year third quarter. Comparable sales declined 27.2% in the
third quarter, with weakness in all direct channels. The Company
permanently closed 5 full-line stores and opened five outlet stores
over the last twelve months.
Vera Bradley Indirect segment revenues totaled $18.0 million, a
27.9% decrease over $25.0 million in the prior year third quarter.
The decrease was primarily related to a decline in specialty and
key account orders as well as a decrease in liquidation sales.
Pura Vida segment revenues totaled $10.1 million, a 42.9%
decrease from $17.7 million in the prior year third quarter,
attributed to a decrease in both ecommerce and wholesale sales.
Retail revenue was nearly flat year over year. As anticipated, a
focus on marketing efficiency amidst a substantially higher cost
environment decreased ecommerce performance and reduced marketing
spend. As a result, Pura Vida continues to focus on diversifying
marketing allocation to other channels. Wholesale revenues were
down, against a strong performance last year and as our partners
were more discriminating in their purchases.
Third quarter consolidated gross profit totaled $43.6 million,
or 54.1% of net revenues, compared to $63.0 million, or 54.8% of
net revenues, in the prior year. The decrease in consolidated gross
profit as a percentage of net revenues in the third quarter was
attributable to sales channel mix and an increase in outbound
freight cost.
Third quarter consolidated SG&A expense totaled $54.2
million, or 67.3% of net revenues, compared to $56.4 million, or
49.0% of net revenues, in the prior year. On a non-GAAP basis,
consolidated SG&A expense totaled $51.0 million, or 63.2% of
net revenues, compared to $55.1 million, or 48.0% of net revenues,
in the prior year. The decrease in non-GAAP SG&A expense was
due primarily to cost reduction initiatives along with reduced
variable costs.
The Company’s third quarter consolidated operating loss totaled
($10.5) million, or (13.0%) of net revenues, compared to operating
income of $6.8 million, or 5.9% of net revenues, in the prior year
third quarter. On a non-GAAP basis, the Company’s current year
consolidated operating loss totaled ($7.2) million, or (9.0%) of
net revenues, compared to operating income of $8.0 million, or 7.0%
of net revenues, in the prior year.
By segment:
- Vera Bradley Direct operating income was $2.1 million, or 4.0%
of Direct net revenues, compared to $15.7 million, or 21.7% of
Direct net revenues, in the prior year. On a non-GAAP basis, Direct
operating income totaled $4.5 million, or 8.6% of Direct
revenues.
- Vera Bradley Indirect operating income was $6.1 million, or
33.7% of Indirect net revenues, compared to $9.0 million, or 35.9%
of Indirect net revenues, in the prior year. On a non-GAAP basis,
Indirect operating income totaled $6.6 million, or 36.7% of
Indirect net revenues.
- Pura Vida’s operating loss was ($2.7) million, or (26.9%) of
Pura Vida net revenues, compared to ($0.6) million, or (3.3%) of
Pura Vida net revenues, in the prior year. On a non-GAAP basis,
Pura Vida’s operating loss was ($2.6) million, or (25.7%) of Pura
Vida net revenues, compared to operating income of $0.1 million, or
0.8% of Pura Vida net revenues, in the prior year.
Details for the Nine Months
Vera Bradley Direct segment revenues for the current year
nine-month period totaled $181.1 million, a 16.5% decrease from
$216.9 million in the prior year. Comparable sales declined 16.0%
for the nine months.
Vera Bradley Indirect segment revenues for the nine months
totaled $51.3 million, an 11.1% decrease from $57.7 million last
year attributable mostly to a decrease in specialty retail
orders.
Pura Vida segment revenues totaled $39.6 million, a 37.1%
decrease from $62.9 million in the prior year, attributed to a
decrease in both ecommerce and wholesale sales, partially offset by
new store growth.
Consolidated gross profit for the nine months totaled $141.9
million, or 52.2% of net revenues, compared to $186.8 million, or
55.3% of net revenues, in the prior year. On a non-GAAP basis,
gross profit totaled $142.7 million, or 52.5% of net revenues. The
decrease in consolidated gross profit as a percentage of net
revenues for the nine months was driven by sales channel mix, a
lower margin profile of fiscal 2025 Indirect liquidation sales, an
increase in promotional activity, and one-time vendor charges.
For the nine months, consolidated SG&A expense totaled
$161.6 million, or 59.4% of net revenues, compared to $174.3
million, or 51.6% of net revenues, in the prior year. On a non-GAAP
basis, current year consolidated SG&A expense totaled $155.6
million, or 57.2% of net revenues, compared to $169.1 million, or
50.1% of net revenues, in the prior year. The decrease in non-GAAP
SG&A expense was due primarily to cost reduction initiatives
and a reduction in variable expenses.
For the nine months, the Company’s consolidated operating loss
totaled ($19.0) million, or (7.0%) of net revenues, compared to
operating income of $13.3 million, or 3.9% of net revenues, in the
prior year nine-month period. On a non-GAAP basis, the Company’s
current year consolidated operating loss was ($12.1) million, or
(4.5%) of net revenues, compared to an operating income of $18.5
million, or 5.5% of net revenues, in the prior year.
By segment:
- Vera Bradley Direct operating income was $19.5 million, or
10.8% million of Direct net revenues, compared to $43.7 million, or
20.1% of Direct net revenues, in the prior year. On a non-GAAP
basis, current year Direct operating income was $23.1 million, or
12.8% of Direct net revenues, compared to $44.0 million, or 20.3%
of Direct net revenues, in the prior year.
- Vera Bradley Indirect operating income was $14.6 million, or
28.5% of Indirect net revenues, compared to $19.9 million, or 34.4%
of Indirect net revenues, in the prior year. On a non-GAAP basis,
Indirect operating income totaled $15.4 million, or 30.0% of
Indirect net revenues.
- Pura Vida’s operating loss was ($3.8) million, or (9.7%) of
Pura Vida net revenues, compared to an operating income of $5.0
million, or 7.9% of Pura Vida net revenues, in the prior year. On a
non-GAAP basis, Pura Vida operating loss was ($2.1) million, or
(5.4%) of Pura Vida revenues, compared to operating income of $7.2
million, or 11.5% of Pura Vida net revenues, in the prior
year.
Balance Sheet
Cash and cash equivalents as of November 2, 2024 totaled $13.7
million compared to $52.3 million at the end of last year’s third
quarter. The Company had no borrowings on its $75 million
asset-based lending (“ABL”) facility at quarter end.
Total quarter-end inventory was $131.3 million, compared to
$129.1 million at the end of the third quarter last year. Net
capital spending for the nine months ended November 2, 2024 totaled
$6.1 million compared to $2.5 million in the prior year.
During the third quarter, the Company repurchased approximately
$5.3 million of its common stock (960,487 shares at an average
price of $5.50), bringing the total repurchased for the nine months
to approximately $21.2 million (3,281,921 shares at an average
price of $6.45). The Company has approximately $4.4 million
remaining under its $50.0 million repurchase authorization that
expires in December 2024.
The Board of Directors has approved an additional $30.0 million
repurchase authorization which commences at the expiration of the
current authorization and extends for three years. The Company does
not currently plan to purchase shares under the remaining 2024
Share Repurchase Program, but anticipates utilizing the newly
approved share repurchase authorization in the future depending on
market conditions and the Company's cash position.
Forward Outlook
Excluding net revenues, all guidance-related numbers are
non-GAAP. The prior year income statement numbers used in the
forward-looking discussion below are also non-GAAP as they exclude
the previously disclosed charges for intangible asset impairment
charges, severance charges, amortization of definite-lived
intangible assets, and consulting and professional fees primarily
associated with strategic initiatives. Current year guidance also
excludes any similar charges as well as property, plant, and
equipment impairment charges, Project Restoration initiative
charges, and one-time vendor charges. Fiscal 2024 represented a
53-week year while Fiscal 2025 represents a 52-week year.
For Fiscal 2025, the Company’s expectations are as follows:
- Consolidated net revenues of approximately $385 million. Net
revenues totaled $470.8 million in Fiscal 2024, including the
estimated impact of a 53rd week of $6.0 million.
- Consolidated gross profit percentage of approximately 52.5%
compared to 54.5% in Fiscal 2024. The fiscal 2025 gross profit rate
change is due to product margin improvements and lower supply chain
costs, offset by increased shipping costs, increased promotional
cadence in our direct segments, and increased liquidation
sales.
- Consolidated SG&A expense of approximately $213 million
compared to $234.7 million in Fiscal 2024. Year-over-year SG&A
expense reductions are anticipated to come from decreased variable
costs along with continued structural cost reductions.
- Consolidated operating loss of approximately ($9) million
compared to operating income of $22.6 million in Fiscal 2024.
- Consolidated diluted EPS of approximately ($0.25) based on
diluted weighted-average shares outstanding of 29.7 million and an
effective tax rate of approximately 8%. Diluted EPS totaled $0.55
last year, including the estimated impact of a 53rd week of
$0.01.
- Net capital spending of approximately $13 million compared to
$3.8 million in the prior year, reflecting investments associated
with new and remodeled stores as well as technology and logistics
enhancements.
- End of year cash balance of approximately $35 million.
Disclosure Regarding Non-GAAP Measures
Non-GAAP Numbers
The current year non-GAAP third quarter and nine-month income
statement numbers referenced below exclude the previously outlined
impairment charges, intangible asset amortization, severance
charges, Project Restoration initiative charges, one-time vendor
charges, consulting and professional fees, the income tax effect
related to these items, as well as a tax effect related to a change
in the Company’s effective tax rate from a revision in the
projection of the Company’s annual income in the current fiscal
quarter. The prior year non-GAAP third quarter and nine-month
income statement numbers referenced below exclude the previously
outlined severance charges, intangible asset amortization,
consulting and professional fees, and the income tax effect related
to these items.
The Company's management does not, nor does it suggest that
investors should, consider the supplemental non-GAAP financial
measures in isolation from, or as a substitute for, financial
information prepared in accordance with accounting principles
generally accepted in the United States (“GAAP”). Further, the
non-GAAP measures utilized by the Company may be unique to the
Company, as they may be different from non-GAAP measures used by
other companies.
The Company believes that the non-GAAP measures presented in
this earnings release, including cash flow (usage); gross profit;
selling, general, and administrative expenses; operating (loss)
income; net (loss) income; and diluted net (loss) income per share,
along with the associated percentages of net revenues, are helpful
to investors because they allow for a more direct comparison of the
Company’s year-over-year performance and are consistent with
management’s evaluation of business performance. A reconciliation
of the non-GAAP measures to the most directly comparable GAAP
measures can be found in the Company’s supplemental schedules
included in this earnings release.
Consistent with SEC regulations, the Company has not provided a
reconciliation of forward-looking non-GAAP financial measures to
the most directly comparable GAAP financial measures in reliance on
the "unreasonable efforts" exception set forth in the applicable
regulations, because there is substantial uncertainty associated
with predicting any future adjustments the Company may make to its
GAAP financial measures in calculating non-GAAP financial
measures.
Call Information
A conference call to discuss results for the third quarter is
scheduled for today, Wednesday, December 11, 2024, at 9:30 a.m.
Eastern Time. A broadcast of the call will be available via Vera
Bradley’s Investor Relations section of its website,
www.verabradley.com. Alternatively, interested parties may dial
into the call at (877) 407-0779, and enter the access code
13742956. A replay will be available shortly after the conclusion
of the call and remain available through December 25, 2024. To
access the recording, listeners should dial (844) 512-2921, and
enter the access code 13742956.
About Vera Bradley, Inc.
Vera Bradley, Inc. operates two unique lifestyle brands – Vera
Bradley and Pura Vida. Vera Bradley and Pura Vida are complementary
businesses, both with devoted, emotionally-connected, and
multi-generational female customer bases; alignment as casual,
comfortable, affordable, and fun brands; positioning as “gifting”
and socially-connected brands; strong, entrepreneurial cultures; a
keen focus on community, charity, and social consciousness;
multi-channel distribution strategies; and talented leadership
teams aligned and committed to the long-term success of their
brands.
Vera Bradley, based in Fort Wayne, Indiana, is a leading
designer of women’s handbags, luggage and other travel items,
fashion and home accessories, and unique gifts. Founded in 1982 by
friends Barbara Bradley Baekgaard and Patricia R. Miller, the brand
is known for its innovative designs, iconic patterns, and brilliant
colors that inspire and connect women unlike any other brand in the
global marketplace.
Pura Vida, based in La Jolla, California, is a digitally native,
highly-engaging lifestyle brand with a differentiated and expanding
offering of bracelets, jewelry, and other lifestyle
accessories.
The Company has three reportable segments: Vera Bradley Direct
(“VB Direct”), Vera Bradley Indirect (“VB Indirect”), and Pura
Vida. The VB Direct business consists of sales of Vera Bradley
products through Vera Bradley Full-Line and Outlet stores in the
United States; Vera Bradley’s websites, www.verabradley.com,
outlet.verabradley.com, and international.verabradley.com; and the
Vera Bradley annual outlet sale in Fort Wayne, Indiana. The VB
Indirect business consists of sales of Vera Bradley products to
approximately 1,200 specialty retail locations throughout the
United States, as well as select department stores, national
accounts, third party e-commerce sites, and third-party inventory
liquidators, and royalties recognized through licensing agreements
related to the Vera Bradley brand. The Pura Vida segment consists
of sales of Pura Vida products through the Pura Vida websites,
www.puravidabracelets.com and www.puravidabracelets.eu;
through the distribution of its products to wholesale retailers and
department stores; and through its Pura Vida retail stores.
Website Information
We routinely post important information for investors on our
website www.verabradley.com in the "Investor Relations"
section. We intend to use this webpage as a means of disclosing
material, non-public information and for complying with our
disclosure obligations under Regulation FD. Accordingly, investors
should monitor the Investor Relations section of our website, in
addition to following our press releases, SEC filings, public
conference calls, presentations and webcasts. The information
contained on, or that may be accessed through, our webpage is not
incorporated by reference into, and is not a part of, this
document.
Investors and other interested parties may also access the
Company’s most recent Corporate Responsibility and Sustainability
Report outlining its ESG (Environmental, Social, and Governance)
initiatives at
https://verabradley.com/pages/corporate-responsibility.
Vera Bradley Safe Harbor Statement
Certain statements in this release are "forward-looking
statements" made pursuant to the safe-harbor provisions of the
Private Securities Litigation Reform Act of 1995. Such
forward-looking statements reflect the Company's current
expectations or beliefs concerning future events and are subject to
various risks and uncertainties that may cause actual results to
differ materially from those that we expected, including: possible
adverse changes in general economic conditions and their impact on
consumer confidence and spending; possible inability to predict and
respond in a timely manner to changes in consumer demand; possible
loss of key management or design associates or inability to attract
and retain the talent required for our business; possible inability
to maintain and enhance our brands; possible inability to
successfully implement the Company’s long-term strategic plan;
possible inability to successfully open new stores, close targeted
stores, and/or operate current stores as planned; incremental
tariffs or adverse changes in the cost of raw materials and labor
used to manufacture our products; possible adverse effects
resulting from a significant disruption in our distribution
facilities; or business disruption caused by pandemics or other
macro factors. More information on potential factors that could
affect the Company’s financial results is included from time to
time in the “Risk Factors” and “Management’s Discussion and
Analysis of Financial Condition and Results of Operations” sections
of the Company’s public reports filed with the SEC, including the
Company’s Form 10-K for the fiscal year ended February 3, 2024. We
undertake no obligation to publicly update or revise any
forward-looking statement. Financial schedules are attached to this
release.
CONTACTS:Investors:Tom Filandro, PartnerICR,
IncVeraBradleyIR@icrinc.com
Media: mediacontact@verabradley.com877-708-VERA (8372)
|
|
|
Vera Bradley, Inc.Condensed Consolidated
Balance Sheets(in
thousands)(unaudited) |
|
|
| |
|
November 2,2024 |
|
February 3,2024 |
|
October 28,2023 |
| Assets |
|
|
|
|
|
|
| Current assets: |
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
13,711 |
|
|
$ |
77,303 |
|
|
$ |
52,266 |
|
|
Accounts receivable, net |
|
|
24,263 |
|
|
|
17,112 |
|
|
|
25,599 |
|
|
Inventories |
|
|
131,314 |
|
|
|
118,278 |
|
|
|
129,140 |
|
|
Income taxes receivable |
|
|
3,948 |
|
|
|
461 |
|
|
|
1,376 |
|
|
Prepaid expenses and other current assets |
|
|
11,549 |
|
|
|
12,803 |
|
|
|
13,025 |
|
|
Total current assets |
|
|
184,785 |
|
|
|
225,957 |
|
|
|
221,406 |
|
| Operating right-of-use
assets |
|
|
83,239 |
|
|
|
66,488 |
|
|
|
67,037 |
|
| Property, plant, and
equipment, net |
|
|
54,356 |
|
|
|
54,256 |
|
|
|
55,909 |
|
| Intangible assets, net |
|
|
6,237 |
|
|
|
7,573 |
|
|
|
13,731 |
|
| Deferred income taxes |
|
|
20,471 |
|
|
|
20,355 |
|
|
|
18,961 |
|
| Other assets |
|
|
9,887 |
|
|
|
6,157 |
|
|
|
5,790 |
|
|
Total assets |
|
$ |
358,975 |
|
|
$ |
380,786 |
|
|
$ |
382,834 |
|
| Liabilities and
Shareholders’ Equity |
|
|
|
|
|
|
| Current liabilities: |
|
|
|
|
|
|
|
Accounts payable |
|
$ |
19,933 |
|
|
$ |
14,155 |
|
|
$ |
12,297 |
|
|
Accrued employment costs |
|
|
6,876 |
|
|
|
12,944 |
|
|
|
11,756 |
|
|
Short-term operating lease liabilities |
|
|
21,172 |
|
|
|
18,452 |
|
|
|
18,673 |
|
|
Other accrued liabilities |
|
|
11,575 |
|
|
|
12,070 |
|
|
|
13,671 |
|
|
Income taxes payable |
|
|
210 |
|
|
|
640 |
|
|
|
570 |
|
|
Total current liabilities |
|
|
59,766 |
|
|
|
58,261 |
|
|
|
56,967 |
|
| Long-term operating lease
liabilities |
|
|
73,965 |
|
|
|
62,552 |
|
|
|
63,915 |
|
| Other long-term
liabilities |
|
|
46 |
|
|
|
44 |
|
|
|
71 |
|
|
Total liabilities |
|
|
133,777 |
|
|
|
120,857 |
|
|
|
120,953 |
|
| Shareholders’ equity: |
|
|
|
|
|
|
|
Additional paid-in-capital |
|
|
114,167 |
|
|
|
112,590 |
|
|
|
112,397 |
|
|
Retained earnings |
|
|
267,252 |
|
|
|
282,467 |
|
|
|
284,322 |
|
|
Accumulated other comprehensive income (loss) |
|
|
14 |
|
|
|
(72 |
) |
|
|
(74 |
) |
|
Treasury stock |
|
|
(156,235 |
) |
|
|
(135,056 |
) |
|
|
(134,764 |
) |
|
Total shareholders’ equity |
|
|
225,198 |
|
|
|
259,929 |
|
|
|
261,881 |
|
|
Total liabilities and shareholders’ equity |
|
$ |
358,975 |
|
|
$ |
380,786 |
|
|
$ |
382,834 |
|
|
|
|
Vera Bradley, Inc.Condensed Consolidated
Statements of Operations(in thousands, except per
share amounts)(unaudited) |
| |
| |
Thirteen Weeks Ended |
|
Thirty-Nine Weeks Ended |
| |
|
November 2,2024 |
|
October 28,2023 |
|
November 2,2024 |
|
October 28,2023 |
|
Net revenues |
|
$ |
80,578 |
|
|
$ |
114,987 |
|
|
$ |
272,003 |
|
|
$ |
337,521 |
|
| Cost of sales |
|
|
36,969 |
|
|
|
51,980 |
|
|
|
130,124 |
|
|
|
150,749 |
|
|
Gross profit |
|
|
43,609 |
|
|
|
63,007 |
|
|
|
141,879 |
|
|
|
186,772 |
|
| Selling, general, and
administrative expenses |
|
|
54,220 |
|
|
|
56,363 |
|
|
|
161,628 |
|
|
|
174,274 |
|
| Other income, net |
|
|
137 |
|
|
|
142 |
|
|
|
717 |
|
|
|
773 |
|
|
Operating (loss) income |
|
|
(10,474 |
) |
|
|
6,786 |
|
|
|
(19,032 |
) |
|
|
13,271 |
|
| Interest income, net |
|
|
113 |
|
|
|
285 |
|
|
|
1,059 |
|
|
|
241 |
|
|
(Loss) income before income taxes |
|
|
(10,361 |
) |
|
|
7,071 |
|
|
|
(17,973 |
) |
|
|
13,512 |
|
| Income tax expense
(benefit) |
|
|
2,439 |
|
|
|
1,953 |
|
|
|
(2,758 |
) |
|
|
3,819 |
|
|
Net (loss) income |
|
$ |
(12,800 |
) |
|
$ |
5,118 |
|
|
$ |
(15,215 |
) |
|
$ |
9,693 |
|
| |
|
|
|
|
|
|
|
|
| Basic weighted-average shares
outstanding |
|
|
28,074 |
|
|
|
30,814 |
|
|
|
29,339 |
|
|
|
30,836 |
|
| Diluted weighted-average
shares outstanding |
|
|
28,074 |
|
|
|
31,322 |
|
|
|
29,339 |
|
|
|
31,246 |
|
| |
|
|
|
|
|
|
|
|
| Basic net (loss) income per
share |
|
$ |
(0.46 |
) |
|
$ |
0.17 |
|
|
$ |
(0.52 |
) |
|
$ |
0.31 |
|
| Diluted net (loss) income per
share |
|
$ |
(0.46 |
) |
|
$ |
0.16 |
|
|
$ |
(0.52 |
) |
|
$ |
0.31 |
|
|
|
|
Vera Bradley, Inc.Condensed Consolidated
Statements of Cash Flows(in
thousands)(unaudited) |
| |
| |
|
Thirty-Nine Weeks Ended |
| |
|
November 2,2024 |
|
October 28,2023 |
| Cash flows from
operating activities |
|
|
|
|
|
Net (loss) income |
|
$ |
(15,215 |
) |
|
$ |
9,693 |
|
| Adjustments to reconcile net
(loss) income to net cash (used in) provided by operating
activities: |
|
|
|
|
|
Depreciation of property, plant, and equipment |
|
|
6,210 |
|
|
|
5,988 |
|
|
Amortization of operating right-of-use assets |
|
|
14,850 |
|
|
|
15,622 |
|
|
Impairment charges |
|
|
2,181 |
|
|
|
— |
|
|
Amortization of intangible assets |
|
|
1,336 |
|
|
|
2,187 |
|
|
Provision for doubtful accounts |
|
|
31 |
|
|
|
87 |
|
|
Stock-based compensation |
|
|
2,269 |
|
|
|
2,365 |
|
|
Deferred income taxes |
|
|
(116 |
) |
|
|
3,155 |
|
|
Other non-cash (gain) loss, net |
|
|
(2 |
) |
|
|
50 |
|
|
Changes in assets and liabilities: |
|
|
|
|
|
Accounts receivable |
|
|
(7,182 |
) |
|
|
(3,581 |
) |
|
Inventories |
|
|
(13,036 |
) |
|
|
13,135 |
|
|
Prepaid expenses and other assets |
|
|
(2,476 |
) |
|
|
(688 |
) |
|
Accounts payable |
|
|
3,349 |
|
|
|
(8,134 |
) |
|
Income taxes |
|
|
(3,917 |
) |
|
|
(53 |
) |
|
Operating lease liabilities, net |
|
|
(17,468 |
) |
|
|
(16,495 |
) |
|
Accrued and other liabilities |
|
|
(6,571 |
) |
|
|
(2,273 |
) |
| Net cash (used in) provided by
operating activities |
|
|
(35,757 |
) |
|
|
21,058 |
|
| Cash flows from
investing activities |
|
|
|
|
|
Purchases of property, plant, and equipment |
|
|
(6,050 |
) |
|
|
(2,546 |
) |
|
Cash paid for business acquisition |
|
|
— |
|
|
|
(10,000 |
) |
| Net cash used in investing
activities |
|
|
(6,050 |
) |
|
|
(12,546 |
) |
| Cash flows from
financing activities |
|
|
|
|
|
Payments on financial-institution debt |
|
|
|
|
|
Borrowings on financial-institution debt |
|
|
|
|
|
Tax withholdings for equity compensation |
|
|
(692 |
) |
|
|
(972 |
) |
|
Repurchase of common stock |
|
|
(21,179 |
) |
|
|
(1,900 |
) |
| Net cash used in financing
activities |
|
|
(21,871 |
) |
|
|
(2,872 |
) |
| Effect of exchange rate
changes on cash and cash equivalents |
|
|
86 |
|
|
|
31 |
|
| Net (decrease) increase in
cash and cash equivalents |
|
$ |
(63,592 |
) |
|
$ |
5,671 |
|
| Cash and cash equivalents,
beginning of period |
|
|
77,303 |
|
|
|
46,595 |
|
| Cash and cash equivalents, end
of period |
|
$ |
13,711 |
|
|
$ |
52,266 |
|
|
|
|
Vera Bradley, Inc.Third
Quarter Fiscal 2025GAAP
to Non-GAAP Reconciliation Thirteen Weeks Ended
November 2, 2024 (in thousands,
except per share amounts)(unaudited) |
| |
| |
Thirteen Weeks Ended |
|
Net loss |
$ |
(12,800 |
) |
| Impairment charges(1) |
|
2,181 |
|
| Project Restoration(1) |
|
669 |
|
| Severance(1) |
|
248 |
|
| Consulting and professional
fees(1) |
|
164 |
|
| Income tax adjustments(2) |
|
2,017 |
|
| Net loss - Non-GAAP |
|
(7,521 |
) |
| Diluted net loss per share -
Non-GAAP |
$ |
(0.27 |
) |
| (1) Recorded in
selling, general, and administrative expenses |
| (2) Related to the
tax impact of the items mentioned above, inclusive of the effect of
the change in the Company's effective tax rate from a revision in
the projection of the Company's annual income in the current fiscal
quarter |
| |
| |
Thirteen Weeks Ended |
| |
Vera Bradley Direct |
|
Vera Bradley Indirect |
|
Pura Vida |
|
Unallocated Corporate Expenses |
|
Total |
|
Operating income (loss) |
$ |
2,104 |
|
|
|
6,068 |
|
|
$ |
(2,711 |
) |
|
$ |
(15,935 |
) |
|
$ |
(10,474 |
) |
| Impairment charges |
|
2,063 |
|
|
|
— |
|
|
|
118 |
|
|
|
— |
|
|
|
2,181 |
|
| Project Restoration |
|
147 |
|
|
|
522 |
|
|
|
— |
|
|
|
— |
|
|
|
669 |
|
| Severance |
|
186 |
|
|
|
14 |
|
|
|
— |
|
|
|
48 |
|
|
|
248 |
|
| Consulting and professional
fees |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
164 |
|
|
|
164 |
|
| Operating income (loss) -
Non-GAAP |
$ |
4,500 |
|
|
$ |
6,604 |
|
|
$ |
(2,593 |
) |
|
$ |
(15,723 |
) |
|
$ |
(7,212 |
) |
|
|
|
Vera Bradley, Inc.Third
Quarter Fiscal 2024GAAP
to Non-GAAP Reconciliation Thirteen Weeks Ended
October 28, 2023 (in thousands,
except per share amounts)(unaudited) |
| |
| |
Thirteen Weeks Ended |
|
Net income |
$ |
5,118 |
|
| Amortization of definite-lived
intangible assets(1) |
|
729 |
|
| Severance(1) |
|
304 |
|
| Consulting and professional
fees(1) |
|
183 |
|
| Income tax adjustments(2) |
|
(234 |
) |
| Net income - Non-GAAP |
|
6,100 |
|
| Diluted net income per share -
Non-GAAP |
$ |
0.19 |
|
| (1) Recorded in
selling, general, and administrative expenses |
| (2) Related to the
tax impact of the charges mentioned above |
| |
|
| |
Thirteen Weeks Ended |
| |
Vera Bradley Direct |
|
Vera Bradley Indirect |
|
Pura Vida |
|
Unallocated Corporate Expenses |
|
Total |
|
Operating income |
$ |
15,708 |
|
|
|
8,967 |
|
|
$ |
(580 |
) |
|
$ |
(17,309 |
) |
|
$ |
6,786 |
|
| Amortization of definite-lived
intangible assets |
|
— |
|
|
|
— |
|
|
|
729 |
|
|
|
— |
|
|
|
729 |
|
| Severance |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
304 |
|
|
|
304 |
|
| Consulting and professional
fees |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
183 |
|
|
|
183 |
|
| Operating income-
Non-GAAP |
$ |
15,708 |
|
|
$ |
8,967 |
|
|
$ |
149 |
|
|
$ |
(16,822 |
) |
|
$ |
8,002 |
|
|
|
|
Vera Bradley, Inc.Third
Quarter Fiscal 2025GAAP
to Non-GAAP Reconciliation Thirty-Nine Weeks
Ended November 2, 2024 (in
thousands, except per share
amounts)(unaudited) |
| |
| |
Thirty-Nine Weeks Ended |
|
Net loss |
$ |
(15,215 |
) |
| Impairment charges(1) |
|
2,181 |
|
| Amortization of definite-lived
intangible assets(1) |
|
1,336 |
|
| Severance(2) |
|
1,037 |
|
| Project Restoration(1) |
|
999 |
|
| One-time vendor
charges(3) |
|
747 |
|
| Consulting and professional
fees(1) |
|
602 |
|
| Income tax adjustments(4) |
|
(1,857 |
) |
| Net loss - Non-GAAP |
|
(10,170 |
) |
| Diluted net loss per share -
Non-GAAP |
$ |
(0.35 |
) |
| (1) Recorded in
selling, general, and administrative expenses |
| (2) $926 recorded
in selling, general, and administrative expenses and $111 recorded
in cost of goods sold |
| (3) Recorded in
cost of goods sold |
| (4) Related to the
tax impact of the items mentioned above, inclusive of the effect of
the change in the Company's effective tax rate from a revision in
the projection of the Company's annual income in the current fiscal
quarter |
| |
|
| |
Thirty-Nine Weeks Ended |
| |
Vera Bradley Direct |
|
Vera Bradley Indirect |
|
Pura Vida |
|
Unallocated Corporate Expenses |
|
Total |
|
Operating income (loss) |
$ |
19,530 |
|
|
|
14,637 |
|
|
$ |
(3,824 |
) |
|
$ |
(49,375 |
) |
|
$ |
(19,032 |
) |
| Impairment charges |
|
2,063 |
|
|
|
— |
|
|
|
118 |
|
|
|
— |
|
|
|
2,181 |
|
| Amortization of definite-lived
intangible assets |
|
— |
|
|
|
— |
|
|
|
1,336 |
|
|
|
— |
|
|
|
1,336 |
|
| Severance |
|
321 |
|
|
|
231 |
|
|
|
— |
|
|
|
485 |
|
|
|
1,037 |
|
| Project Restoration |
|
477 |
|
|
|
522 |
|
|
|
— |
|
|
|
— |
|
|
|
999 |
|
| One-time vendor charges |
|
747 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
747 |
|
| Consulting and professional
fees |
|
— |
|
|
|
— |
|
|
|
222 |
|
|
|
380 |
|
|
|
602 |
|
| Operating income (loss) -
Non-GAAP |
$ |
23,138 |
|
|
$ |
15,390 |
|
|
$ |
(2,148 |
) |
|
$ |
(48,510 |
) |
|
$ |
(12,130 |
) |
|
|
|
Vera Bradley, Inc.Third
Quarter Fiscal 2024GAAP
to Non-GAAP Reconciliation Thirty-Nine Weeks
Ended October 28, 2023 (in
thousands, except per share
amounts)(unaudited) |
| |
| |
Thirty-Nine Weeks Ended |
|
Net income |
$ |
9,693 |
|
| Severance(1) |
|
2,372 |
|
| Amortization of definite-lived
intangible assets(1) |
|
2,187 |
|
| Consulting and professional
fees(1) |
|
658 |
|
| Income tax adjustments(2) |
|
(1,247 |
) |
| Net income - Non-GAAP |
|
13,663 |
|
| Diluted net income per share -
Non-GAAP |
$ |
0.44 |
|
| (1) Recorded in
selling, general, and administrative expenses |
| (2) Related to the
tax impact of the charges mentioned above |
| |
| |
Thirty-Nine Weeks Ended |
| |
Vera Bradley Direct |
|
Vera Bradley Indirect |
|
Pura Vida |
|
Unallocated Corporate Expenses |
|
Total |
|
Operating income |
$ |
43,669 |
|
|
|
19,877 |
|
|
$ |
4,982 |
|
|
$ |
(55,257 |
) |
|
$ |
13,271 |
|
| Severance |
|
342 |
|
|
|
— |
|
|
|
79 |
|
|
|
1,951 |
|
|
|
2,372 |
|
| Amortization of definite-lived
intangible assets |
|
— |
|
|
|
— |
|
|
|
2,187 |
|
|
|
— |
|
|
|
2,187 |
|
| Consulting and professional
fees |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
658 |
|
|
|
658 |
|
| Operating income -
Non-GAAP |
$ |
44,011 |
|
|
$ |
19,877 |
|
|
$ |
7,248 |
|
|
$ |
(52,648 |
) |
|
$ |
18,488 |
|
Vera Bradley (NASDAQ:VRA)
Historical Stock Chart
From Dec 2024 to Jan 2025
Vera Bradley (NASDAQ:VRA)
Historical Stock Chart
From Jan 2024 to Jan 2025
