NASDAQ$VRA

Vera Bradley Inc · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Reported a net loss for the second quarter of fiscal year 2023, but non-GAAP net income was positive due to cost reduction actions and share repurchases.

Vera Bradley reported consolidated net revenues of $130.4 million for the second quarter. The company experienced a net loss of $29.8 million, or ($0.95) per diluted share, but on a non-GAAP basis, net income was $2.4 million, or $0.08 per diluted share. The company is implementing cost reduction actions and focusing on strengthening its core brands.

  • Consolidated net revenues totaled $130.4 million.
  • Net loss totaled ($29.8) million, or ($0.95) per diluted share.
  • Non-GAAP net income totaled $2.4 million, or $0.08 per diluted share.
  • Balance sheet remains solid with cash and cash equivalents of $38.3 million and no debt.

Headline financials

Total Revenue

$130M

Previous: $147M-11.3%
EPS (adj)

$0.08

Previous: $0.28-71.4%
Capital Expenditures

-$4.39M

Previous: -$2.28M-92.5%
Free Cash Flow

-$34.2M

Previous: $6.77M-604.6%
Net Income

-$29.8M

Previous: $9.05M-428.9%
Operating Income

-$42.8M

Previous: $12.6M-438.6%
Gross Profit

$60.5M

Previous: $80.4M-24.7%
Cash & Equivalents

$38.3M

Previous: $75.8M-49.4%
Total Assets

$483M

Previous: $525M-8.0%
Stock-Based Comp

$901K

Previous: $1.56M-42.2%

Revenue & EPS history

Vera Bradley · Revenue · Quarterly

$130M

Q2 2023-11.3%vs Q2 2022
Beat estimate in 8 of 16 quarters(50%)
ActualEstimate

Revenue by segment

Vera Bradley · $104M total across 2 segments · Q2 2023

  • Direct
    $87M-10.4%
  • Indirect
    $17.3M+3.0%

Forward guidance

The company expects the challenging macroeconomic environment to continue for the balance of the year. They anticipate it will take additional time to return the Pura Vida ecommerce business to growth, high gas prices and other inflationary pressures will continue to impact the Vera Bradley factory channel, and there will be continued pressure on gross margin. Consolidated net revenues of $480 to $490 million is expected.

Tailwinds

  • Gross profit percentage of 53.7% to 54.1%
  • Reduction in SG&A expense is being driven by cost reduction initiatives
  • Reduction in compensation expense, marketing, and other variable-related expenses due to the expected sales decline from the prior year
  • Net capital spending of approximately $8 to $10 million
  • Investments associated with new Vera Bradley factory and Pura Vida store locations and technology and logistics enhancements

Headwinds

  • Challenging macroeconomic environment to continue for the balance of the year
  • Additional time to return the Pura Vida ecommerce business to growth
  • High gas prices and other inflationary pressures will continue to impact the Vera Bradley factory channel
  • Continued pressure on gross margin
  • Consolidated operating income of $11.6 to $14.5 million compared to $30.1 million in Fiscal 2022

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 Q2 2023

Historical avgQ2 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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