Vera Bradley revenues decline, earnings fall short of estimates

Vera Bradley’s fourth quarter net revenues declined 6.1 percent to 133.3 million dollars, while net loss was 1.9 million dollars or 6 cents per diluted share. On a non-GAAP basis net income totaled 3.5 million dollars or 11 cents per diluted share compared to analysts' estimate of 15 cents.

Consolidated net revenues dropped to 470.8 million dollars for fiscal 2024 and net income reached 7.8 million dollars or 25 cents per diluted share. On a non-GAAP basis, Vera Bradley’s net income was 17.2 million dollars or 55 cents per diluted share.

Commenting on the trading results, Jackie Ardrey, chief executive officer of the Company, stated, “We are pleased with the completion of the first full year of our turnaround story. We have successfully pivoted the organisation toward a bright future and effectively managed both the existing business as well as the turnaround efforts, through Project Restoration, which will begin to bear fruit in the coming year.”

Vera Bradley posts negative results at Pura Vida

Pura Vida fourth quarter sales declined 21.6 percent, to 24.2 million dollars, primarily due to decreases in ecommerce and wholesale revenues. Current year Pura Vida segment revenues totaled 87.1 million dollars, an 11.5 percent decrease from the prior year.

Fourth quarter consolidated gross profit rose to 69.6 million dollars or 52.3 percent of net revenues, while gross profit for the current fiscal year increased 256.4 million dollars or 54.5 percent of net revenue.

Fourth quarter operating loss narrowed to 2.8 million dollars or 2.1 percent of net revenues, while on a non-GAAP basis, fourth quarter consolidated operating income totaled 4.1 million dollars or 3.1 percent of net revenues. For the fiscal year, the operating income totaled 10.4 million dollars or 2.2 percent of net revenues and on a non-GAAP basis, operating income was 22.6 million dollars or 4.8 percent of net revenues.

Vera Bradley projects fiscal 2025 outlook

For fiscal 2025, the company projects consolidated net revenues of 460 to 480 million dollars compared to 470.8 million dollars in fiscal 2024. The company expects Vera Bradley brand sales to grow by low-single digits for the year, with accelerating sales in the second half. Pura Vida brand sales are expected to decline in the mid-teen range.

A consolidated gross profit percentage of 54 percent to 55 percent is expected compared to 54.5 percent in fiscal 2024.