SPY441.40-4.34 -0.97%
DIA345.64-1.80 -0.52%
IXIC15,043.97-137.96 -0.91%

Vera Bradley Shares Plummet After Q2 Earnings Miss Estimates

Benzinga · 09/01/2021 09:50
  • Vera Bradley Inc (NASDAQ:VRAreported second-quarter FY22 revenue growth of 12% year-on-year, to $147.05 million, missing the analyst consensus of $153.61 million.
  • Apple Inc's (NASDAQ:AAPL) iOS 14.5 update negatively affected Pura Vida revenues, primarily due to its impact on the effectiveness of advertising.
  • Vera Bradley Direct segment revenues increased 19.6% Y/Y, while Indirect segment revenues fell 5.1%.
  • The gross margin for the quarter declined 580 basis points Y/Y to 54.6%.
  • The operating margin was 8.6%, and operating income for the quarter fell 27.7% to $12.6 million.
  • Vera Bradley held $75.8 million in cash and equivalents as of July 31, 2021.
  • Cash provided by operating activities for the six months totaled $16.5 million.
  • Adjusted EPS of $0.28 missed the analyst consensus of $0.33.
  • Vera Bradley said it continued to experience supply chain challenges and significantly increased freight and tariff expenses.
  • Outlook: Vera Bradley expects FY22 sales of $550 million - $565 million (prior $555 million - $575 million) versus the consensus of $570.3 million.
  • Consolidated EPS of $0.80 - $0.95 (prior $0.85 - $1.00) versus the consensus of $0.95.
  • It sees consolidated gross profit percentage of 54.6% - 55.3% (prior 56.0% - 57.0%) versus 57.0% in FY21.
  • Price Action: VRA shares are trading lower by 15% at $9.78 on the last check Wednesday.