NASDAQ$VRA

Vera Bradley Inc · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Reported a revenue increase and mixed performance across its brands.

Vera Bradley, Inc. reported a consolidated net revenue increase of 7.9% for the third quarter of fiscal year 2022. Vera Bradley brand revenues gained momentum, while Pura Vida sales returned to double-digit growth. However, the company faced supply chain challenges and increased freight expenses, impacting gross margin.

  • Consolidated net revenues increased by 7.9% year-over-year to $134.7 million.
  • Vera Bradley brand comparable sales rose nearly 8% over last year.
  • Pura Vida sales increased by 11.7% over last year, driven by wholesale accounts.
  • The company experienced supply chain challenges and increased freight expenses, impacting gross margin.

Headline financials

Total Revenue

$135M

Previous: $125M+7.9%
EPS (adj)

$0.18

Previous: $0.30-40.0%
Capital Expenditures

-$4.03M

Previous: -$5.18M+22.1%
Free Cash Flow

$1.75M

Previous: $3.7M-52.8%
Net Income

$5.78M

Previous: $8.87M-34.9%
Operating Income

$7.95M

Previous: $12.2M-34.6%
Gross Profit

$72.3M

Previous: $73.8M-2.1%
Cash & Equivalents

$74.8M

Previous: $75.8M-1.3%
Total Assets

$521M

Previous: $541M-3.8%
Stock-Based Comp

$1.05M

Previous: $2.18M-51.9%

Revenue & EPS history

Vera Bradley · Revenue · Quarterly

$135M

Q3 2022+7.9%vs Q3 2021
Beat estimate in 5 of 16 quarters(31%)
ActualEstimate

Revenue by segment

Vera Bradley · $108M total across 2 segments · Q3 2022

  • Direct
    $86.6M+10.7%
  • Indirect
    $20.9M-6.3%

Forward guidance

The retail environment continues to be uncertain, and future financial performance remains difficult to predict. For the fourth quarter of Fiscal 2022, the Company’s updated expectations are as follows:

Tailwinds

  • Consolidated net revenues of $155 to $160 million.
  • Consolidated SG&A expense of $68 to $69 million
  • Consolidated diluted EPS of $0.24 to $0.29 based on diluted weighted-average shares outstanding of 34.4 million and an effective tax rate of approximately 21.0%.
  • Consolidated net revenues of $546 to $551 million.
  • Free cash flow of between $45 and $50 million

Headwinds

  • A consolidated gross profit percentage of 51.6% to 52.1%
  • The expected rate decline relates to ongoing supply chain challenges and incremental costs for inbound and outbound freight expense.
  • The retroactive reinstatement of GSP is not included in the current year gross margin estimate.
  • The expected SG&A increase is primarily related to general variable increases associated with higher sales expectations.
  • Consolidated operating income of $34 to $37 million

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 Q3 2022

Historical avgQ3 2022

-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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