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May 04, 2024
Vera Bradley Q1 2025 Earnings Report
Reported a net loss for the first quarter of fiscal year 2025, impacted by economic headwinds and pre-transformation activities.
Key Takeaways
Vera Bradley reported first quarter consolidated net revenues of $80.6 million, a decrease from $94.4 million last year. The company experienced a net loss of $8.1 million, or $0.26 per diluted share, compared to a net loss of $4.7 million, or $0.15 per diluted share, last year. Management reconfirmed its fiscal year 2025 guidance.
Consolidated net revenues totaled $80.6 million, compared to $94.4 million last year.
Net loss totaled ($8.1) million, or ($0.26) per diluted share, compared to a net loss of ($4.7) million, or ($0.15) per diluted share, last year.
Non-GAAP net loss totaled ($6.5) million, or ($0.21) per diluted share, compared to a non-GAAP net loss of ($2.6) million, or ($0.09) per diluted share, last year.
Cash and cash equivalents of $55.2 million, no debt, and year-over-year inventories down over 12%.
Vera Bradley
Vera Bradley
Vera Bradley Revenue by Segment
Revenue by Segment
VB Direct Revenue
CapyFin.comVB Indirect Revenue
CapyFin.com Forward Guidance
Management is reconfirming its non-GAAP diluted earnings per share estimate range for Fiscal 2025 based on first quarter performance, current macroeconomic trends and expectations, and implementation of components of Project Restoration.
Positive Outlook
- Vera Bradley brand sales to grow by low-single digits for the year, with accelerating sales in the second half as we launch our new products, branding, and marketing.
- A consolidated gross profit percentage of 54.0% to 55.0%.
- Consolidated operating income of $21.0 to $24.5 million.
- Consolidated diluted EPS of $0.54 to $0.62 based on diluted weighted-average shares outstanding of 30.1 million and an effective tax rate of approximately 28%.
- Free cash flow of approximately $10 million.
Challenges Ahead
- Consolidated net revenues of $460 to $480 million.
- Pura Vida brand sales will decline in the mid-teen range as we continue to manage the business for profitability by addressing marketing efficiencies impacting ecommerce sales, partially offset by increased retail sales.
- Consolidated SG&A expense of $229 to $239 million.
- Net capital spending of approximately $12 to $14 million, reflecting investments associated with new and remodeled stores as well as technology and logistics enhancements.
- Economic and pre-transformation headwinds in the first half of this year followed by business acceleration in the second half.
Revenue & Expenses
Visualization of income flow from segment revenue to net income