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Jul 31, 2021
Vera Bradley Q2 2022 Earnings Report
Reported an increase in consolidated net revenues and net income compared to the prior year, but experienced challenges with Pura Vida revenues due to Apple's iOS update and supply chain issues.
Key Takeaways
Vera Bradley, Inc. reported an 11.6% increase in consolidated net revenues to $147.0 million for the second quarter. Net income was $9.1 million, or $0.26 per diluted share, and non-GAAP net income was $9.5 million, or $0.28 per diluted share. The company faced challenges including the impact of Apple's iOS 14.5 update on Pura Vida revenues and supply chain disruptions affecting gross margin.
Consolidated net revenues increased by 11.6% year-over-year to $147.0 million.
Net income was $9.1 million, or $0.26 per diluted share.
Non-GAAP net income totaled $9.5 million, or $0.28 per diluted share.
The balance sheet remains strong with over $76 million in cash, cash equivalents, and investments, and no debt.
Vera Bradley
Vera Bradley
Vera Bradley Revenue by Segment
Revenue by Segment
VB Direct Revenue
CapyFin.comVB Indirect Revenue
CapyFin.com Forward Guidance
Management updated its revenue and diluted earnings per share estimates for the fiscal year ending January 29, 2022, due to second quarter performance and industry headwinds.
Positive Outlook
- Consolidated net revenues are expected to be between $550 to $565 million.
- Free cash flow is projected to be between $50 and $55 million.
- Consolidated operating income is anticipated to be $40 to $46 million.
- Consolidated diluted EPS is estimated at $0.80 to $0.95.
- Net capital spending is expected to be approximately $8 to $10 million.
Challenges Ahead
- The retail environment continues to be uncertain, making future financial performance difficult to predict.
- Continued supply chain challenges are expected.
- Substantial projected increases in inbound and outbound freight expenses are anticipated.
- Gross profit percentage is expected to decline due to an abatement in mask penetration and higher freight costs.
- SG&A expense is expected to increase due to factors including Vera Bradley stores being open for the full year and higher sales expectations.
Revenue & Expenses
Visualization of income flow from segment revenue to net income