Why Vera Bradley Shares Are Falling Today

Vera Bradley, Inc. (NASDAQ:VRA) shares are trading lower in the morning session on Wednesday.

The company reported fourth-quarter adjusted earnings per share of 11 cents, missing the street view of 14 cents.

Vera Bradley reported fourth-quarter revenues of $133.265 million, missing the street view of $136.054 million.

Current year fourth quarter Vera Bradley Direct segment revenues totaled $93.0 million, a 6.6% decrease year over year. Comparable sales decreased 10%. 

Vera Bradley Indirect segment revenues totaled $16.1 million, down 3.7% year over year. The decrease was primarily related to lower sales to certain specialty partners and key accounts.

Fourth quarter consolidated gross profit totaled $69.6 million, or 52.3% of net revenues, compared to $60.0 million, or 40.8% of net revenues, in the prior year’s fourth quarter. 

Cash and cash equivalents as of February 3, 2024, totaled $77.3 million.

Total fiscal year-end inventory was $118.3 million, compared to $142.3 million at last fiscal year end. 

During the fourth quarter, the company repurchased approximately $0.3 million of its common stock, bringing the company’s fiscal 2024 purchases to $2.2 million.

“We anticipate the Fiscal 2025 macroeconomic environment to continue to be unpredictable and that this year will continue to be a rebuilding year for the company, as we start to unveil the results of Project Restoration mid-year,” said Jackie Ardrey, Chief Executive Officer of the company.

“We expect to continue to take advantage of gross margin improvement opportunities and will manage our expense structure diligently,” Ardrey added.

Outlook: Vera Bradley sees FY25 revenue of $460 million-$480 million versus $490.32 million estimate. 

The company sees consolidated diluted EPS of $0.54-$0.62 versus $0.70 estimate.

Price Action: VRA shares are trading lower by 12.9% to $6.195 on the last check Wednesday.