NASDAQ$VRA

Vera Bradley Inc · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Reported a net loss due to lower than expected revenues, partially offset by price increases and expense control.

Vera Bradley reported consolidated net revenues of $98.5 million and a net loss of $7.0 million, or $0.21 per diluted share, for the first quarter of fiscal year 2023. The results were impacted by inflationary pressures and a shift in social and digital media effectiveness.

  • Total Company first quarter revenues fell below expectations, resulting in a net loss of $0.19 per diluted share before certain charges.
  • Inflationary pressures impacted spending of Vera Bradley full-line customers with household incomes below $55,000 and traffic in factory stores.
  • Pura Vida's ecommerce revenues were significantly affected by the shift in social and digital media effectiveness and rising digital media costs.
  • The company is reducing its cost structure, targeting annual savings of $15 to $25 million.

Headline financials

Total Revenue

$98.5M

Previous: $109M-9.7%
EPS (adj)

-$0.19

Previous: -$0.05-280.0%
Capital Expenditures

-$1.75M

Previous: -$503K-246.9%
Free Cash Flow

-$8.72M

Previous: -$2.65M-229.3%
Net Income

-$6.97M

Previous: -$2.15M-225.1%
Operating Income

-$8.23M

Previous: -$1.96M-320.3%
Gross Profit

$52.5M

Previous: $59.2M-11.2%
Cash & Equivalents

$64M

Previous: $51.4M+24.6%
Total Assets

$504M

Previous: $501M+0.5%
Stock-Based Comp

$543K

Previous: $1.81M-70.1%

Revenue & EPS history

Vera Bradley · Revenue · Quarterly

$98.5M

Q1 2023-9.7%vs Q1 2022
Beat estimate in 6 of 16 quarters(38%)
ActualEstimate

Revenue by segment

Vera Bradley · $78.6M total across 2 segments · Q1 2023

  • Direct
    $61.6M-7.6%
  • Indirect
    $17M+11.1%

Forward guidance

The Company expects the challenging macroeconomic environment to continue for the balance of the year and that it will take time to return the Pura Vida ecommerce business to growth. The company lowered its outlook for fiscal year 2023.

Tailwinds

  • Gross profit percentage of 54.5% to 55.0% compared to 53.3% in Fiscal 2022 primarily related to price increases.
  • SG&A expense of $248 to $253 million compared to $258.8 million in Fiscal 2022 driven by cost reduction initiatives.
  • Effective tax rate of between 23.0 and 24.0%.
  • Maximizing the travel category, which is nearly back to pre-pandemic levels.
  • Optimizing back-to-campus opportunities, with strategic assortment enhancements.

Headwinds

  • Consolidated net revenues of $490 to $505 million compared to $540.5 million in Fiscal 2022.
  • Year-over-year Vera Bradley revenues are expected to decline between 5% and 7%.
  • Pura Vida revenues are expected to decline between 12% and 16%.
  • Consolidated operating income of $18.8 to $25.0 million compared to $30.1 million in Fiscal 2022.
  • Consolidated diluted EPS of $0.35 to $0.50 compared to $0.57 last year.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q1 2023

Historical avgQ1 2023

-0.6%

Avg return

Earnings day

-0.7%

Avg return

5 days after

-1.9%

Avg return

30 days after

40%

26 / 65 earnings

Positive

+36.9%

Q3 2016

Best reaction

-24.1%

Q4 2020

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2027
Q4 2026+35.7%+31.3%+55.8%
Q3 2026-16.3%+0.9%+42.8%
Q2 2026-7.9%-9.2%-12.7%
Q1 2026-2.1%-10.0%-13.0%
Q4 2025-3.3%+0.7%-22.4%
Q3 2025-17.7%-26.0%-31.0%
Q2 2025-0.6%-1.4%+4.0%
Q1 2025-19.7%-22.6%-16.3%
Q4 2024-9.8%-13.6%-10.7%
Q3 2024+6.5%+5.9%+2.5%
Q2 2024+4.5%+5.5%-3.6%
Q1 2024+16.0%+12.6%+16.8%
Q4 2023+2.9%+3.3%+8.3%
Q3 2023+14.4%+19.7%+24.6%
Q2 2023-18.2%-21.6%-32.4%
Q1 2023-8.0%-22.5%-30.6%
Q4 2022+6.5%+8.0%+0.9%
Q3 2022-18.3%-16.0%-17.9%
Q2 2022-11.5%-11.2%-16.1%
Q1 2022-9.5%-7.0%-13.0%
Q4 2021+0.6%+5.6%+1.3%
Q3 2021-13.5%-10.7%-5.0%
Q2 2021+31.1%+40.3%+27.4%
Q1 2021+7.8%+21.7%-24.7%
Q4 2020-24.1%-37.9%-17.2%
Q3 2020-8.3%-7.8%-7.0%
Q2 2020-16.5%-14.2%-1.7%
Q1 2020-2.2%+0.7%+2.5%
Q4 2019+25.3%+21.5%+7.2%
Q3 2019-16.5%-17.6%-6.2%
Q2 2019+17.6%+17.3%-3.1%
Q1 2019+6.4%+5.4%+6.7%
Q4 2018-4.1%+2.7%+6.0%
Q3 2018+30.8%+35.8%+31.9%
Q2 2018-10.2%-9.7%-12.5%
Q1 2018+2.8%+1.4%+15.1%
Q4 2017-4.5%-1.9%-6.7%
Q3 2017-12.6%-16.0%-19.9%
Q2 2017+9.6%+11.4%+1.3%
Q1 2017-2.7%-2.9%-6.7%
Q4 2016+11.2%
Q3 2016+36.9%
Q2 2016+33.7%
Q1 2016-18.0%
Q4 2015-16.3%
Q3 2015+0.7%
Q2 2015+0.7%
Q1 2015-8.4%
Q4 2014+9.9%
Q3 2014-4.2%
Q2 2014-0.6%
Q1 2014-8.0%
Q4 2013-1.1%
Q3 2013-15.3%
Q2 2013-6.5%
Q1 2012+6.4%
Q1 2013-11.5%
Q1 2011-1.5%
Q4 2012-1.5%
Q4 2010-1.5%
Q3 2011-8.6%
Q3 2012-8.6%
Q2 2012+5.0%
Q4 2011+5.0%
Q2 2011+5.0%

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