Vera Bradley, the popular accessories company hailing from Fort Wayne, Indiana, recently released their financial results for the first quarter of the fiscal year ending on May 4th, 2019. While the company exceeded expectations in terms of net sales, the widening net losses were a cause for concern.
During Q1, Vera Bradley experienced a notable 5.1% increase in net sales, totaling an impressive $91.0 million, compared to $86.6 million from the previous year. This figure fell within the company’s projected guidance range of $86 to $91 million and surpassed the estimates of Wall Street analysts, who had predicted $87.9 million in sales. The improvement in net sales was accompanied by a 5.2% increase in comparable sales, driven by growth in both comparable-store sales and e-commerce revenues. However, the indirect segment revenues saw a decline of 5.7% due to lower orders from specialty accounts.
Despite the positive sales figures, Vera Bradley’s net loss for the quarter widened to $2.4 million, up from $1.4 million in the same period the year before. This increase in losses was primarily due to higher selling, general, and administrative expenses, which were influenced by factors such as new store openings, consulting fees, and variable costs.
CEO Robert Wallstrom expressed his satisfaction with the company’s revenue growth and customer response to recent product innovations and marketing initiatives. As Vera Bradley continues to implement its Vision 20/20 strategic turnaround plan, the focus remains on expanding the customer base, increasing sales, and driving profitability.
Looking towards the second quarter, Vera Bradley has forecasted net revenues ranging between $115 million to $120 million, with diluted earnings per share expected to fall in the range of $0.25 to $0.28. For the entire fiscal year of 2020, the company aims to achieve net revenues of $425 to $440 million and diluted earnings per share of $0.67 to $0.74. The strategic goals for the year encompass achieving comparable sales growth, enhancing technology and operational processes, and reinforcing the company’s culture of ownership. These objectives underline Vera Bradley’s commitment to sustainable growth and success in the coming year.
For more information on Vera Bradley’s financial results, you can visit their official website here. Additionally, for in-depth analysis and insights into the retail industry, you can refer to this informative article here.
