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Jul 30, 2022
Vera Bradley Q2 2023 Earnings Report
Reported a net loss for the second quarter of fiscal year 2023, but non-GAAP net income was positive due to cost reduction actions and share repurchases.
Key Takeaways
Vera Bradley reported consolidated net revenues of $130.4 million for the second quarter. The company experienced a net loss of $29.8 million, or ($0.95) per diluted share, but on a non-GAAP basis, net income was $2.4 million, or $0.08 per diluted share. The company is implementing cost reduction actions and focusing on strengthening its core brands.
Consolidated net revenues totaled $130.4 million.
Net loss totaled ($29.8) million, or ($0.95) per diluted share.
Non-GAAP net income totaled $2.4 million, or $0.08 per diluted share.
Balance sheet remains solid with cash and cash equivalents of $38.3 million 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
The company expects the challenging macroeconomic environment to continue for the balance of the year. They anticipate it will take additional time to return the Pura Vida ecommerce business to growth, high gas prices and other inflationary pressures will continue to impact the Vera Bradley factory channel, and there will be continued pressure on gross margin. Consolidated net revenues of $480 to $490 million is expected.
Positive Outlook
- Gross profit percentage of 53.7% to 54.1%
- Reduction in SG&A expense is being driven by cost reduction initiatives
- Reduction in compensation expense, marketing, and other variable-related expenses due to the expected sales decline from the prior year
- Net capital spending of approximately $8 to $10 million
- Investments associated with new Vera Bradley factory and Pura Vida store locations and technology and logistics enhancements
Challenges Ahead
- Challenging macroeconomic environment to continue for the balance of the year
- Additional time to return the Pura Vida ecommerce business to growth
- High gas prices and other inflationary pressures will continue to impact the Vera Bradley factory channel
- Continued pressure on gross margin
- Consolidated operating income of $11.6 to $14.5 million compared to $30.1 million in Fiscal 2022
Revenue & Expenses
Visualization of income flow from segment revenue to net income