Vera Bradley Q1 2024 Earnings Report
Key Takeaways
Vera Bradley, Inc. announced its financial results for the first quarter ended April 29, 2023. The company reported consolidated net revenues of $94.4 million and a net loss of $4.7 million, or $0.15 per diluted share. The balance sheet remains strong with $25.3 million in cash and cash equivalents and no debt.
Meaningful gross margin expansion and diligent expense control led to significant year-over-year improvement in bottom-line performance.
Pura Vida experienced its first positive quarterly revenue performance in five quarters, primarily driven by non-comparable retail store sales.
Vera Bradley e-commerce performance was strong, and Vera Bradley full-line store revenues were solid.
The company announced $12 million in incremental annualized cost reductions, including the elimination of approximately 25 corporate positions.
Vera Bradley
Vera Bradley
Vera Bradley Revenue by Segment
Forward Guidance
Management is updating guidance for the fiscal year ending February 3, 2024, based on first quarter performance, company initiatives underway, and current macroeconomic trends and expectations.
Positive Outlook
- Consolidated net revenues of $490 to $510 million.
- A consolidated gross profit percentage of 52.8% to 53.8%.
- Consolidated SG&A expense of $237 to $247 million.
- Consolidated operating income of $24 to $28 million.
- Free cash flow of between $35 and $40 million.
Challenges Ahead
- Both Vera Bradley and Pura Vida revenues are expected to be approximately flat on a year-over-year basis.
- An increase in promotional activity is expected.
- Restoring short-term and long-term incentive compensation to more normalized levels.
- Incremental marketing investment intended to accelerate customer file growth.
- Effective tax rate of approximately 28%.
Revenue & Expenses
Visualization of income flow from segment revenue to net income