Vera Bradley (VRA) Misses Q1 EPS by 11c, Revenue Beats, Offers Guidance

Vera Bradley (NASDAQ: VRA) reported Q1 EPS of ($0.31), $0.11 worse than the analyst estimate of ($0.20). Revenue for the quarter came in at $109.1 million versus the consensus estimate of $97.89 million.

GUIDANCE:

Vera Bradley sees FY2022 EPS of $0.85-$1.00, versus the consensus of $0.86. Vera Bradley sees FY2022 revenue of $555-575 million, versus the consensus of $562.4 million.

• Consolidated net revenues of $555 to $575 million. Net revenues totaled $468.3 million in Fiscal 2021. Year-over-year Pura Vida revenues are expected to grow between 20% and 30%, and Vera Bradley revenues are expected to grow between 15% and 20%.
• Free cash flow of between $50 and $55 million compared to $15.0 million in the prior year.
• A consolidated gross profit percentage of 56.0% to 57.0% compared to 57.0% in Fiscal 2021. The potential rate decline relates to an abatement in mask penetration in Fiscal 2022 coupled with incremental costs for inbound and outbound freight expense.
• Consolidated SG&A expense of $265 to $275 million compared to $233.0 million in Fiscal 2021. The expected SG&A increase is primarily related to Vera Bradley stores being opened for the full year (stores were temporarily closed for between several weeks and several months in Fiscal 2021 due to the pandemic), non-comparable compensation and Cares Act savings in Fiscal 2021, and general variable increases associated with higher sales expectations.
• Consolidated operating income of $46 to $53 million compared to $34.0 million in Fiscal 2021.
• Consolidated diluted EPS of $0.85 to $1.00 based on diluted weighted-average shares outstanding of 34.6 million and an effective tax rate of approximately 24.0%. Diluted EPS totaled $0.63 last year.
• Net capital spending of approximately $8 to $10 million compared to $5.7 million in the prior year, reflecting investments associated with new factory locations and technology and logistics enhancements.
• Disclosure Regarding Non-GAAP Measures

For earnings history and earnings-related data on Vera Bradley (VRA) click here.

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