Vera Bradley turnover declines to 485.9 mn dollars in FY16

Vera Bradley net revenues totalled 134.8 million dollars for the current year fourth quarter ended January 28, 2017, compared to 154.1 million dollars in the prior year fourth quarter ended January 30, 2016. Net revenues were 485.9 million dollars for fiscal 2017, compared to revenues of 502.6 million dollars for the fiscal year ended January 30, 2016.

Commenting on the company’s fourth quarter performance, Robert Wallstrom, CEO, noted in a statement, "The retail environment became even more challenging in the fourth quarter. Consequently, both total revenues and our gross profit percentage were modestly below our expectations. However, we exceeded our fourth quarter EPS guidance."

Review of the Q4 and FY16 performance

For the fourth quarter, the company posted net income of 3.5 million dollars or 0.09 dollar per diluted share. These results included 6.6 million dollars of after-tax impairment charges related to underperforming stores. On a non-GAAP basis, excluding these charges, the company's net income totalled 10.1 million dollars or 0.28 dollar per diluted share. This compares to net income of 15.7 million dollars or 0.41 dollar, same quarter, last year. On a non-GAAP basis, excluding certain charges, the company's net income totalled 17.5 million dollars or 0.46 dollar per diluted share.

The company posted net income of 19.8 million dollars or 0.53 dollar per diluted share, in the current fiscal year. These results included net after-tax adjustments of 7 million dollars, comprised of: $8.0 million of store impairment charges and 0.6 million dollars of severance charges, partially offset by the release of 1.6 million dollars in tax reserves no longer deemed necessary. On a non-GAAP basis, excluding these adjustments, the company's current year net income totalled 26.8 million dollars or 0.72 dollar per diluted share.

For the prior year, the company posted net income of 27.6 million dollars or 0.71 dollar per diluted share. These results included net after-tax charges totalling 6 million dollars, comprised of 1.8 million dollars of store impairment charges; 2.1 million dollars related to the closing of its Indiana manufacturing facility, primarily related to severance and lease termination charges; 1.5 million dollars related to other severance and restructuring charges; and 0.6 million related to an increase in income tax reserves for uncertain federal and state tax positions related to research and development credits. On a non-GAAP basis, excluding these charges, the company's net income totalled 33.5 million dollars or 0.86 dollar per diluted share, for the prior year.

Looking ahead, Wallstrom added, "As we enter fiscal 2018, our primary objective is to increase our customer count. In order to do this, we must strengthen our distribution network, focusing on driving comparable sales in our core businesses, including continuing to strengthen our digital flagship and relocating or closing up to 15 underperforming full-line stores."

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