Vera Bradley, Inc. | $VRA Stock | Shares Rally 10% After Reporting Narrower Losses & Higher Guidance

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Vera Bradley, Inc.  (NASDAQ: VRA)


Shares of Vera Bradley, Inc. started the day well on Wednesday with a gain of more than 10%.

The surge came after the Indiana-based accessories company reported a narrower than expected first-quarter loss and issued a full-year guidance ahead of analysts’ expectations. The stock was trading at $14.25 at 9:30 AM after closing Tuesday’s session at $13.07.

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Vera Bradley reported a loss of nearly $1.4 million, or $0.04 per share, compared to a loss of about $4.0 million, or $0.11 per share, in the same period last year.

Adjusted losses per share came to $0.09 on a revenue of $86.6 million. Wall Street analysts had predicted a loss of $0.10 per share and a revenue of $86.2 million. In the same period last year, the company reported a loss of $96.1 million.

Same-store sales dropped 8.5% during the quarter, including a 21% decrease in online sales.

The company also raised its second-quarter revenue guidance, and now expects to report a figure of between $111 million and $116 million. In addition, it expects per-share earnings of between $0.15 to $0.17, and adjusted per-share earnings of $0.13 cents.

Analysts expect it to report revenue of $100.4 million and per-share earnings of $0.09.

For the full fiscal 2019, the company expects revenue in the range of $405 million and $422 million, per-share earnings of $0.40 to $0.50, up from earlier guidance of $0.35 to $0.45, and adjusted per-share earnings of $0.60.

Analysts expect it to report a revenue $411.3 million and per-share earnings of $0.42.

Vera Bradley CEO Comments

We are pleased that our first quarter results exceeded both expectations and prior year performance, primarily driven by a higher-than-planned gross margin rate, largely due to reduced clearance and improved full-price selling, as well as better-than-expected expense leverage. Revenues were in line with our guidance,” said, Robert Wallstrom, Chief Executive Officer of Vera Bradley.

Our plan to strengthen our brand and company health by materially reducing clearance and realigning our expense structure – continues to be the driving force behind every action we take. We made excellent progress against our initiatives in the first quarter,” Wallstrom added.

Vera Bradley, Inc. Company Profile

Vera Bradley, engages in the design, manufacture, and sale of women’s travel items, gifts, handbags, luggage, home and fashion accessories.

The company has two segments of operation; Indirect and Direct. It offers clutches, totes, baby bags, crossbodies, satchels, backpacks, lunch bags accessories; including scarves, wallets, eyeglass cases, wristlets, and a variety of technology accessories.

In addition, the company provides home products including comforters, beach towels, and blankets. It also offers other items, including merchandising, footwear/apparel, gift card, and stationery products, as well as licensing and freight services.

The company operated a total of 51 factory outlet stores and 109 full-line stores as of February, 2018.

It sells its company-branded products through its e-commerce website (, specialty retail outlets in the U.S., department stores, third-party inventory liquidators, third party e-commerce websites, and via licensing agreements.

Vera Bradley, Inc. was established in 1982 and its head offices are based in Roanoke, IN. –Reuters