Vera Bradley reports Q2 sales growth and profit growth

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Vera Bradley Inc.’s second quarter consolidated net revenues totalled 147 millions dollars, an 11.6 percent increase over the previous quarter.

Consolidated net income totalled 9.1 million dollars or 26 cents per diluted share, while on a non-GAAP basis, net income totalled 9.5 million dollars or 28 cents per diluted share. Vera Bradley’s second quarter consolidated net income was 7.2 million dollars, or 42 cents per share.

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Commenting on the second quarter results, Rob Wallstrom, the company’s chief executive officer, noted: “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. Vera Bradley also experienced supply chain problems and significant increases in freight and tariff costs, which put pressure on the gross margin. These pressures will likely continue in the medium term.”

Review of Vera Bradley’s H1 results Vera Bradley’s six-month prior year consolidated net loss was 8.1 million dollars, or loss of 24c per diluted share.

Vera Bradley direct segment revenues 163.9 million dollars, a 38.8 percent increase over the prior year. Vera Bradley indirect segment revenues were 32.1 million dollars for six months, an increase of 10.8 percent.

Pura Vida segment revenues totalled 60.2 million dollars, an 11.4 percent increase over 54 million dollars in the prior year. Prior year gross profit was 115.1 million dollars, or 57.3 percent, of net revenues.

For the six months, the company’s consolidated operating income totalled 10.7 million dollars or 4.2 percent of net revenues, compared to a consolidated operating loss of 8.1 million dollars or 4 percent of net revenues, in the prior year six-month period. Vera Bradley’s indirect segment revenues were 16.8 million dollars, which is a 5.1% decrease over the previous year.

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Pura Vida segment revenues totalled 33.1 million dollars, a 0.8 percent increase over 32.8 million dollars in the prior year. The company’s current year net operating income was 13.4 million dollars, or 9.1 percentage of net revenues. This compares to 21.1 million or 16 percent in the previous year.

Vera Bradley expects net revenues in the range of 550 to 564 million dollars for FY22 Fiscal 2021 saw net revenues of 468.3 millions dollars.

Consolidated gross profit percentage is expected of 54.6 percent to 55.3 percent compared to 57 percent in fiscal 2021. Last year, diluted EPS was 63 cents.