Vera Bradley sees profit uptick for Q4, FY19; sales still down
today Mar 15, 2019
U.S. handbag and luggage company Vera Bradley said net revenues fell during the fourth-quarter period, despite seeing a profit uptick for the same Holiday quarter and full-year fiscal 2019.
The Fort Wayne, Indiana-based firm achieved revenues of $118.2 million for the current year fourth quarter, ended February 2, 2019. The result sat at the higher end of company expectations, with a range of $114 to $119 million, despite a dive from last year's 132 million in the prior year fourth quarter.
Net income also met firm expectations for the quarter, totalling $8.6 million, or $0.25 per diluted share, compared to net income of $8.5 million, or $0.24 per diluted share.
Speaking on the result, Vera Bradley CEO, Robert Wallstrom said the profit uptick was on the back of the sound sales result, with the company's gross margin rate exceeding expectations, and expenses that were "well-controlled."
For the full-year fiscal 2019, Vera Bradley net revenues totaled $416.1 million, compared to $454.6 million in fiscal 2018. Revenues were at the upper end of the company’s $412 to $417 million guidance range, the firm said.
Meanwhile, the company posted net income of $20.8 million, or $0.59 per diluted share, compared to $7 million, or $0.19 per diluted share -- the latter impaired by $14.5 million worth of after-tax charges, said the firm.
Vera Bradley commenced its turnaround plan some 18 months ago, which saw fiscal 2019 being the debut year for change.
Dubbed "Vision 20/20", the three-year plan is said to restore the brand and business "to a healthy foundation and to return our company to solid growth," said Wallstrom.
"Fiscal 2020 promises to be an exciting and challenging year as we move into Year 2 of our journey, focused on building the platform for growth in customers, sales, and profit,” he added.
For the first quarter of fiscal 2020, the company expects net revenues of $86 to $91 million compared to prior year first quarter revenues of $86.6 million, and a diluted loss per share of ($0.06) to ($0.08).
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