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Oct 29, 2022

Vera Bradley Q3 2023 Earnings Report

Reported third quarter fiscal year 2023 results, with net revenues of $124.0 million and net income of $5.2 million.

Key Takeaways

Vera Bradley, Inc. announced its third quarter fiscal year 2023 results. The company reported consolidated net revenues of $124.0 million. Net income totaled $5.2 million, or $0.17 per diluted share. Non-GAAP net income totaled $6.3 million, or $0.20 per diluted share.

Consolidated third quarter net revenues totaled $124.0 million.

Third quarter net income totaled $5.2 million, or $0.17 per diluted share.

Non-GAAP net income totaled $6.3 million, or $0.20 per diluted share.

Cash and cash equivalents of $25.2 million with no debt.

Total Revenue
$124M
Previous year: $135M
-7.9%
EPS
$0.2
Previous year: $0.18
+11.1%
Gross Profit
$65.9M
Previous year: $72.3M
-8.9%
Cash and Equivalents
$25.2M
Previous year: $74.8M
-66.3%
Free Cash Flow
-$12.2M
Previous year: $972K
-1356.9%
Total Assets
$461M
Previous year: $521M
-11.4%

Vera Bradley

Vera Bradley

Vera Bradley Revenue by Segment

Forward Guidance

The company expects an unpredictable macroeconomic environment, continued challenges for Pura Vida, inflationary pressures impacting Vera Bradley customers, and continued pressure on gross margin.

Positive Outlook

  • Reduction in SG&A expense driven by cost reduction initiatives.
  • Lower year-over-year freight expense.
  • Price increases to offset some negative impacts.
  • Focus on merchandising and marketing opportunities.
  • Solid cash position and balance sheet.

Challenges Ahead

  • Unpredictable macroeconomic environment is expected to continue.
  • Pura Vida business will continue to be challenging.
  • Inflationary pressures will continue to impact Vera Bradley customers with lower household incomes, particularly in the Factory Channel.
  • Continued pressure on gross margin.
  • Expected sales decline from the prior year.

Revenue & Expenses

Visualization of income flow from segment revenue to net income