Vera Bradley, Inc. (NASDAQ:VRA) reported a first-quarter FY24 revenue decline of 4.2% year-over-year to $94.36 million, missing the consensus of $99.67 million. Adjusted EPS was $(0.09) loss, beating the estimate of $(0.20) loss.
Gross margin in Q1 expanded 150 basis points to 54.8%, favorably impacted by lower year-over-year inbound and outbound freight expense and the sell-through of previously-reserved inventory.
The company specified it experienced its first positive quarterly revenue performance in five quarters at Pura Vida, primarily driven by non-comparable retail store sales.
The company’s adjusted consolidated operating loss totaled $(3.5) million, or (3.7%) of net revenues, versus $(6.7) million, or (6.8%) of net revenues, in the prior year.
As of April 29, 2023, cash and equivalents totaled $25.3 million. During the first quarter, the company repurchased approximately $0.7 million of its common stock (about 0.1 million shares at an average price of $5.71).
CEO Jackie Ardrey, said, “On the revenue side, Vera Bradley factory stores experienced challenging traffic trends in March and April that led to weaker-than-expected performance for the quarter. This was partially offset, however, by several positive highlights in other areas of our business.”
Ardrey added, “We made additional corporate changes and announced $12 million in incremental annualized cost reductions, including the elimination of approximately 25 corporate positions as part of an overall plan to further right-size the expense structure of the Company.”
FY24 Outlook: Vera Bradley raised FY24 EPS guidance. The company expects consolidated EPS of $0.57-$0.67 (prior guidance: $0.40-$0.50). Street View is at $0.43. The company maintained its revenue guidance of $490 million – $510 million, compared to the consensus of $500.74 million.
Price Action: VRA shares are trading higher by 19.3% at $6.25 on the last check Wednesday.
