VERA BRADLEY ANNOUNCES FIRST QUARTER FISCAL 2020 RESULTS
First quarter net revenues up 5.1% to $91.0 million, at the high end of guidance; comparable sales grew 5.2% for the quarter
Company ended the quarter with strong cash and investment position of $144.2 million and no debt
Management provides guidance for second quarter and updated guidance for fiscal year ending February 1, 2020; management continues to see potential for double-digit diluted EPS growth for the year
FORT WAYNE, Ind., June 5, 2019 - Vera Bradley, Inc. (Nasdaq: VRA) (“Vera Bradley” or the “Company”) today announced its financial results for the first quarter ended May 4, 2019.
Summary of Financial Performance for the First Quarter
Net revenues totaled $91.0 million for the current year first quarter, a 5.1% increase over $86.6 million in the prior year first quarter. Revenues were at the high end of the Company’s guidance range of $86 to $91 million. Comparable sales increased 5.2% for the quarter.
For the current year first quarter, the Company posted a net loss of ($2.4) million, or ($0.07) per diluted share, which was in line with the Company’s guidance range of a diluted loss per share of ($0.06) to ($0.08). The Company recorded a loss of ($1.4) million, or ($0.04) per diluted share in the prior year first quarter.
Robert Wallstrom, Chief Executive Officer, said, “We are pleased with our 5.2% first quarter comparable sales increase and that revenues were once again at the high end of our guidance, indicating that our customers are responding to both our innovative product and targeted consumer engagement efforts.”
Vision 20/20 - Year 2
“The first stage of Vision 20/20 was to restore brand and Company health, and we continue to build upon the progress we made in Fiscal 2019. We once again improved the quality of sales in our full-line stores and on verabradley.com by increasing comparable full price selling in these two channels by approximately 20%.
“Moving into Year 2 of our three-year journey, we are focused on expanding our customer base and increasing sales and profitability,” Wallstrom concluded. “Our key areas of focus for Fiscal 2020 are:
Growth: Our goal is to return to positive comparable sales growth this year, and we are off to a good start in the first quarter. This improvement is being driven by compelling, innovative product supported by targeted marketing and engaging customer experiences.
Operational Excellence: Later this year, we will begin a two-year process of re-platforming our ERP (enterprise resource planning) and other key information systems to become more streamlined, nimble, and efficient in our technology and business processes.
Ownership: We will continue to reinforce our culture as an ownership-based model, where every Associate can drive significant value creation through their individual and team efforts.”
First Quarter Details
Current year first quarter Direct segment revenues totaled $71.1 million, an 8.6% increase over $65.5 million in the prior year first quarter. Comparable sales (including e-commerce) increased 5.2% for the quarter (reflecting a 4.0% increase in comparable store sales and a 9.2% increase in e-commerce sales). The Company closed eight full-line stores and opened seven factory outlet stores in the last twelve months.
The following information was filed by Vera Bradley, Inc. (VRA) on Wednesday, June 5, 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-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.