VERA BRADLEY ANNOUNCES SECOND QUARTER FISCAL YEAR 2022 RESULTS
Consolidated net revenues totaled $147.0 million for the second quarter, an increase of 11.6% over the prior year
Company posted second quarter net income of $9.1 million, or $0.26 per diluted share; excluding certain items, non-GAAP net income totaled $9.5 million, or $0.28 per diluted share
Balance sheet remains strong, with cash, cash equivalents, and investments over $76 million, and no debt
Management updates annual guidance for fiscal year ending January 29, 2022
FORT WAYNE, Ind., September 1, 2021 – Vera Bradley, Inc. (Nasdaq: VRA) today announced its financial results for the second quarter ended July 31, 2021.
In this release, Vera Bradley, Inc. or “the Company” refers to the entire enterprise and includes both the Vera Bradley and Pura Vida brands. “Vera Bradley” on a stand-alone basis refers only to the Vera Bradley brand.
Second Quarter Comments
Rob Wallstrom, Chief Executive Officer of Vera Bradley, Inc., noted, “We posted a consolidated year-over-year second quarter revenue increase of nearly 12%. On a comparable basis, Vera Bradley was essentially back to its pre-pandemic Fiscal 2020 second quarter revenue level, and Pura Vida was up nearly 7% over the second quarter of Fiscal 2020.
“Second quarter Vera Bradley brand revenues continued to improve as customers responded to product innovation, stores were fully operational, and sales of travel-related products rebounded, despite anniversarying exceptionally strong mask sales from the prior year.”
Wallstrom continued, “However, we experienced two major factors that impacted our second quarter results. First, the Apple iOS 14.5 update negatively affected Pura Vida revenues, primarily due to the impact it had on the effectiveness of Facebook and Instagram advertising. The Facebook and Instagram platforms have been our primary marketing vehicles to drive sales, and Pura Vida has maintained a market-leading position, consistently ranking as the number-one engaged brand in the jewelry category on Instagram. Our team is working diligently to quickly diversify a portion of our marketing resources to other platforms, and consequently, we began to see Pura Vida direct-to-consumer sales volume build momentum throughout the balance of the second quarter and into the beginning of the third. We expect Pura Vida revenues will continue to rebound in the second half of the year.
“Second, like much of the industry, at Vera Bradley, we continued to experience supply chain challenges and significantly increased freight and tariff expenses that put meaningful pressure on gross margin in the quarter. We expect these pressures to continue for the moderate term.
“We were once again able to diligently manage our SG&A expenses, and our balance sheet and cash flow remained strong.”
“With our strong first quarter performance, Fiscal 2022 is off to a solid start, with year-to-date earnings well ahead of last year and even ahead of where we were in Fiscal 2020, pre-pandemic,” Wallstrom added. “We realize we will continue to face
The following information was filed by Vera Bradley, Inc. (VRA) on Wednesday, September 1, 2021 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.