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Oct 28, 2023
Vera Bradley Q3 2024 Earnings Report
Vera Bradley's Q3 2024 earnings were announced, revealing mixed performance across its brands.
Key Takeaways
Vera Bradley, Inc. reported consolidated net revenues of $115.0 million and net income of $5.1 million, or $0.16 per diluted share, for the third quarter of fiscal year 2024. The company's balance sheet was strengthened with $52.3 million in cash and cash equivalents and a reduction in year-over-year inventories by 27.6%.
Consolidated net revenues totaled $115.0 million.
Net income totaled $5.1 million, or $0.16 per diluted share; non-GAAP net income totaled $6.1 million, or $0.19 per diluted share.
Vera Bradley Direct revenue declines primarily resulted from continued weakness in the outlet store channel and the impact of store closures.
Balance sheet strengthens, with cash and cash equivalents of $52.3 million, no debt, and year-over-year inventories down 27.6%
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 updating certain components of guidance for the fiscal year ending February 3, 2024 (“Fiscal 2024”) based on performance for the first nine months, Company initiatives underway, and current macroeconomic trends and expectations.
Positive Outlook
- Consolidated gross profit percentage of 54.0% to 54.5% compared to 51.4% in Fiscal 2023.
- An expected decline in SG&A expense is being driven by Company-wide cost reduction initiatives, partially offset by restoring short-term and long-term incentive compensation to more normalized levels and incremental marketing investment intended to accelerate customer file growth.
- Consolidated operating income of $23.3 to $25.9 million compared to $12.3 million in Fiscal 2023.
- Free cash flow of between $40 and $43 million compared to a cash usage of $21.7 million in Fiscal 2023.
- Net capital spending of approximately $4 million compared to $8.2 million in the prior year, reflecting investments associated with new Vera Bradley outlet stores and technology and logistics enhancements.
Challenges Ahead
- Consolidated net revenues of $472 to $478 million. Net revenues totaled $500.0 million in Fiscal 2023.
- The Fiscal 2024 gross profit rate is expected to be favorably impacted by lower year-over-year freight expense, cost reduction initiatives, and the sell-through of previously-reserved inventory, partially offset by an increase in promotional activity.
- Consolidated SG&A expense of $232.5 to $235.5 million compared to $245.3 million in Fiscal 2023.
- Consolidated diluted EPS of $0.56 to $0.62 based on diluted weighted-average shares outstanding of approximately 31.0 million and an effective tax rate of approximately 28%.
- Possible adverse changes in general economic conditions and their impact on consumer confidence and spending
Revenue & Expenses
Visualization of income flow from segment revenue to net income