Vera Bradley reports Q2 loss of 29.8 million dollars

Consolidated net revenues at Vera Bradley totalled 130.4 million dollars compared to 147 million dollars in the prior year second quarter ended July 31, 2021.

Consolidated net revenues totalled 228.8 million dollars for the six months ended July 30, 2022, compared to 256.1 million dollars in the prior year six month period ended July 31, 2021.

For the second quarter, Vera Bradley, Inc.’s consolidated net loss totalled 29.8 million dollars or 95 cents per diluted share. On a non-GAAP basis, consolidated second quarter net income totalled 2.4 million dollars or 8 cents per diluted share.

For the six month period, Vera Bradley’s consolidated net loss totalled 36.7 million dollars or loss of 1.15 dollars per diluted share. On a non-GAAP basis, consolidated net loss totalled 3.6 million dollars or 11 cents per diluted share.

Commenting on the trading results, Rob Wallstrom, chief executive officer of the company, said: “While total company second quarter revenues of 130.4 million dollars were modestly below our expectations and we continued to experience gross margin pressure due to logistics costs, we drove product innovation at both Vera Bradley and Pura Vida, initiated meaningful cost reduction actions, and completed 6 million dollars of share repurchases, while maintaining a solid, debt-free balance sheet.

Pura Vida segment revenues totalled 26 million dollars, a 21.3 percent decrease from the prior year.

For Fiscal 2023, the company expects consolidated net revenues of 480 to 490 million dollars, a decline between 7 percent and 9 percent. Pura Vida revenues are expected to decline between 16 percent and 21 percent.

A consolidated gross profit percentage is expected between 53.7 percent to 54.1 percent compared to 53.3 percent in fiscal 2022.

Consolidated diluted EPS is expected between 20 cents to 28 cents compared to 57 cents last year.