VERA BRADLEY ANNOUNCES FOURTH QUARTER AND FISCAL YEAR 2019 RESULTS
Fourth quarter net income totaled $8.6 million, or $0.25 per diluted share, at the high end of guidance
Company ended the fiscal year with strong cash and investment position of $156.6 million, operating cash flow of $43.6 million, and no debt
Fourth quarter net revenues totaled $118.2 million, at the high end of guidance
Management provides guidance for first quarter and fiscal year ending February 1, 2020; management sees potential for double-digit diluted EPS growth for the year
FORT WAYNE, Ind., March 13, 2019 - Vera Bradley, Inc. (Nasdaq: VRA) (“Vera Bradley” or the “Company”) today announced its financial results for the fourth quarter and fiscal year ended February 2, 2019 (“Fiscal 2019”).
Summary of Financial Performance for the Fourth Quarter
Net revenues totaled $118.2 million for the current year fourth quarter ended February 2, 2019, compared to $132.0 million in the prior year fourth quarter ended February 3, 2018. Revenues were at the high end of the Company’s guidance range of $114 to $119 million.
For the current year fourth quarter, the Company posted net income of $8.6 million, or $0.25 per diluted share, which was at the high end of the Company’s guidance range of $0.22 to $0.25 per diluted share.
“We are pleased that our fourth quarter revenues were at the high end of our guidance, our gross margin rate exceeded our expectations, and expenses were well-controlled,” noted Robert Wallstrom, Chief Executive Officer. “These factors led to fourth quarter EPS of $0.25, at the top of our guidance range.”
For the prior year fourth quarter, the Company posted net income of $8.5 million, or $0.24 per diluted share. These results included $3.3 million of after-tax charges comprised of:
a tax charge of $2.1 million related to federal tax reform legislation;
severance charges of $0.8 million;
store impairment charges of $0.3 million; and
other strategic plan (Vision 20/20) charges of $0.1 million.
On a non-GAAP basis, excluding these charges, the Company’s prior year fourth quarter net income totaled $11.8 million, or $0.33 per diluted share.
Summary of Financial Performance for the Fiscal Year
Net revenues totaled $416.1 million for Fiscal 2019, compared to $454.6 million in Fiscal 2018. Revenues were at the upper end of the Company’s $412 to $417 million guidance range.
For Fiscal 2019, the Company posted net income of $20.8 million, or $0.59 per diluted share. “We are pleased with our Fiscal 2019 performance, which was not only at the high end of our guidance range of $0.57 to $0.60 per diluted share but was meaningfully better than the $0.35 to $0.45 per share annual guidance we provided at this time last year,” Wallstrom noted.
The following information was filed by Vera Bradley, Inc. (VRA) on Wednesday, March 13, 2019 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.