Vera Bradley Announces Fourth Quarter and Fiscal Year 2022 Results
Vera Bradley reported a 15.4% increase in net revenues to $540.5 million for Fiscal 2022, with net income of $17.8 million or $0.52 per diluted share. Excluding certain items, non-GAAP net income was $19.7 million or $0.57 per diluted share. The company has $88.4 million in cash and no debt. CEO Rob Wallstrom highlighted challenges such as supply chain disruptions and tariff impacts yet emphasized a focus on digital strategies and product innovation. Guidance for Fiscal 2023 reflects ongoing headwinds, with strategic price increases planned.
- Net revenues increased 15.4% to $540.5 million for Fiscal 2022.
- Net income grew to $17.8 million, a significant improvement over last year's $8.7 million.
- Strong cash position with $88.4 million and no debt.
- Consolidated operating income rose to $26.9 million from $13.1 million year-over-year.
- Vera Bradley Direct segment revenues grew 22.7% to $354.9 million.
- Fourth quarter net income decreased to $5.2 million from $7.9 million in the prior year.
- Significant supply chain delays and freight costs negatively impacted profitability.
- E-commerce sales for Pura Vida fell short due to the Apple IDFA update.
- EPS was adversely affected by approximately $0.25 due to increased freight and tariff costs.
Net revenues grew
Net income totaled
excluding certain items, non-GAAP net income totaled
Balance sheet remains strong, with cash and cash equivalents of
Management provides guidance for fiscal year ending January 28, 2023
FORT WAYNE, Ind., March 09, 2022 (GLOBE NEWSWIRE) -- Vera Bradley, Inc. (Nasdaq: VRA) (“Vera Bradley” or the “Company”) today announced its financial results for the fourth quarter and fiscal year ended January 29, 2022 (“Fiscal 2022”).
In this release, Vera Bradley, Inc. or “the Company” refers to the entire enterprise and includes both the Vera Bradley and Pura Vida brands. “Vera Bradley” on a stand-alone basis refers only to the Vera Bradley brand.
Fiscal Year Comments
Rob Wallstrom, Chief Executive Officer of the Company, noted, “At the beginning of the year, we set out to further enhance our two strong brand franchises – Vera Bradley and Pura Vida – and drive revenue and earnings growth through four key strategies: executing our digital-first strategy; enhancing our product innovation pipeline, collaborations, and category extensions; further engaging our communities through marketing; and continuing to evolve our distribution channels. During the year, we made headway on these fronts for both brands, generated strong cash flow, delivered a consolidated year-over-year revenue increase of over
“Our Vera Bradley brand had a solid year of revenue growth, with year-over-year total sales increasing over
“Our Pura Vida brand total sales grew just over
Wallstrom continued, “In addition to the Apple IDFA update, we faced a series of other unprecedented macro issues – including dramatic supply chain delays and freight cost increases, the delayed renewal of GSP (generalized system of preferences) tariff relief, and substantial digital advertising cost increases – all of which materially affected profitability during the year.
“The incremental freight costs and GSP impact combined affected our EPS by approximately
“In the fourth quarter, we began initiating strategic price increases across both of our brands to mitigate some of these inflationary and supply chain pressures, and we are continuing to implement price increases throughout 2022. In hindsight, we should have implemented price changes more quickly.”
“The GSP tariff issue is more specific to the Vera Bradley brand,” Wallstrom said. “The lower gross margin rate throughout the year reflected higher tariffs from previously duty-free countries where we source products whose GSP, or duty-free status, expired at the beginning of 2021. Our expectation was that Congress would pass the GSP legislation early in 2021, but they are still working on the legislation as we head into 2022. In the past, Congress has retroactively reinstated the duty-free status of such tariffs to the beginning of the year. Although industry and government sources are still expecting it to be retroactive, we are not certain when or if this will happen.”
Wallstrom added, “We continued to diligently manage our expenses, and we ended the fiscal year with a solid balance sheet with ample cash of over
“We remain in a strong position to continue to invest in our two lifestyle brands, take advantage of additional growth opportunities over time, and return capital to shareholders through continued share repurchases or future dividends.”
Wallstrom concluded, “Our organization remained focused on the long-term and achieved key strategic wins, while navigating through the dramatically rising inflationary environment. Our extraordinary culture has allowed us to not only persevere through these challenges, but it has made us stronger and is even more critical during this tight labor market. Just last month, we were extremely honored to receive the #1 ranking on the Forbes list of America’s Best Midsize Employers 2022. Our culture is one of our key competitive advantages.”
Summary of Financial Performance for the Fourth Quarter
Consolidated net revenues totaled
For the current year fourth quarter, Vera Bradley, Inc. consolidated net income totaled
For the prior year fourth quarter, Vera Bradley, Inc. consolidated net income totaled
Summary of Financial Performance for the Fiscal Year
Consolidated net revenues totaled
For the current fiscal year, Vera Bradley, Inc.’s consolidated net income totaled
For the prior fiscal year, Vera Bradley, Inc.’s consolidated net income totaled
Key Accomplishments for Fiscal 2022
Wallstrom commented, “As I noted, in Fiscal 2022, we were keenly focused on four strategies to propel the business forward for the future:
- Continue to drive our digital-first strategy. We made strategic organizational shifts and investments to pivot us to a digital-first company, evolving into a customer-centric, data-driven, technology-enabled, and digitally-focused enterprise which allows us to effectively engage with our customers and offer a seamless shopping experience. Over one-third of our consolidated revenues are now generated from e-commerce sales, and excluding our factory stores, over half of our total company sales are driven by e-commerce.
- We are continuing to enhance our product innovation pipeline, collaborations, and category extensions. We continue to build our Vera Bradley and Pura Vida lifestyle brands to attract new customers and increase share of wallet with existing customers.
- We are building our community through marketing. Both brands are working to engage, diversify, and grow their customer bases through analytics, targeted marketing, and ESG efforts. We consistently rank at the top of the industry for our net promoter and customer satisfaction scores for both brands.
- Evolving our distribution channels. We are continually looking for new ways to reach our customers and to reinvent the shopping experience in the ever-changing retail environment; the future for both brands will be a powerful combination of digital and brick and mortar.
“Some of our major achievements for the year included:
For Vera Bradley:
- Digital-first:
- We continue to focus on enhancing and reinventing the customer experience in our full-line stores, and certain digital shopping additions that gained popularity during the pandemic have remained popular, like appointment selling, buy-online/pick-up in-store, and curbside pickup.
- In the Product area:
- We continued another year of high-profile product collaborations with several iconic brands, including Disney, Harry Potter, and Crocs, to create and sell limited-edition product collections, and launched our collaboration with Classic Accessories for a first-ever outdoor collection.
- We accelerated our robust fabric innovation pipeline to develop new fabric offerings and continued to build on our platform of sustainable fabrics. We expanded our full-line Performance Twill and recycled Re-Active collections and our Factory Ultralight fabrication and launched our Cotton ReIMAGINED Collection crafted from
50% recycled and50% conventional cotton. We’re constantly researching and innovating to bring our customers more eco-friendly options, with a goal of updating100% of our fabrics to more sustainable alternatives by 2025. - We expanded our apparel collection, adding graphic tees, puffer jackets, vests, leggings, and a larger selection of pajamas to our already popular cozy collection of sleepwear and robes.
- In the Marketing area:
- Our investments in customer data science and business analytics have continued to position us well, allowing us to collect and analyze data and respond to customer changes and adjust marketing spend in an agile way.
- Vera Bradley continues to engage, diversify, and grow its customer base through analytics, targeted marketing, and VB Cares efforts. Vera Bradley’s customer count grew by nearly
15% over last year essentially bringing us back to pre-pandemic levels, and social media followers continued to grow, with Facebook at nearly 2 million, Instagram approaching 600,000, and TikTok climbing. - Our targeted digital media, traditional media, and public relations efforts drove increased brand awareness and improved earned media, with total media impressions up approximately
140% to slightly over 22 billion for the year. - Our customer service model and voice of the customer program continued to drive industry-leading customer satisfaction scores.
- On the Distribution front:
- We continued to strengthen and rationalize our store base. We opened six new factory stores and closed five underperforming full-line stores, ending the fiscal year with 70 full-line and 75 factory locations.
- Vera Bradley continues to expand its options for customers to shop.
- We launched our Canadian website as our first international, localized website experience.
- We continue to be excited about alternative payments such as AfterPay, which is driving higher units per transaction and increased sales.
- As sustainability and resale continue to gain traction, so does our partnership with ThredUp, which was launched in early Fiscal 2022.
- We added Chewy.com as a new distribution partner for our line of pet products.
- We opened a Vera Bradley store in the LAX airport as part of our travel expansion focus.
For Pura Vida:
- Digital-First:
- We completed Pura Vida’s ERP integration, so that our entire enterprise is now on a unified technology platform, allowing for enhanced capabilities in sourcing, customer service, CRM, and data analytics.
- In the Product area:
- We entered into several high-profile product collaborations, including Hello Kitty, Disney, and Harry Potter, bringing new customers to our brand. In addition, we launched our first jewelry collection with Outer Banks star and influencer Madison Bailey, which is appealing to a more diverse customer.
- Pura Vida continued to show strength as a lifestyle brand by successfully expanding into new product categories, including shirts, hoodies, and backpacks. This lifestyle appeal will continue to be a key driver of growth.
- In the Marketing area:
- Pura Vida’s social media engagement remains exceptional, as one of the most highly-engaged brands in the accessories space on social media, with over 2.2 million Instagram followers and over 450,000 TikTok followers, a little more than a year after launch.
- Pura Vida continued to rank at the top of the industry for our net promoter and customer satisfaction scores.
- On the Distribution front:
- Pura Vida opened its first retail store in San Diego’s Westfield UTC Mall in August. Since opening, sales have far surpassed expectations, and we have experienced a double-digit improvement in our San Diego e-commerce business relative to the rest of the country, demonstrating the power a retail presence has in driving digital sales, omni-channel loyalty, and spending.
- We continued to add new wholesale partnerships, adding over 400 new accounts in Fiscal 2022, exceeding our expectations. And, Dillard’s joined Nordstrom as a Pura Vida department store distributor.
- We added Pura Vida shop-in-shops to 23 full-line Vera Bradley stores and completed our roll out of the Pura Vida charity bracelet program to all Vera Bradley full-line and factory locations.
- We reinforced our commitment to be a Purpose- and ESG-driven organization.
- In 2021, Pura Vida completed its B-Corp Impact Assessment, and in February 2022 was awarded the B Corporation Certification.
- We continued to strengthen our community support and charitable efforts under the umbrella of VB Cares, particularly through organizations that can profoundly improve the lives of women and children, including raising
$1.5 million for the Vera Bradley Foundation Center for Breast Cancer Research, bringing total contributions to date to$37.5 million , and entering the third consecutive year of partnership with Blessings in a Backpack, raising and donating approximately$750,000 t o date, with the help of our customers, to the organization. - Charity bracelets and other products continued to be an important element of the Pura Vida lifestyle and an important draw for our cause-minded customers. To date, Pura Vida has raised and donated approximately
$4.0 million to a myriad of special causes. - We amplified our Company-wide diversity and inclusion initiative, Project Quilt, to continue to enhance diversity, equality, and inclusion, focusing on three key areas – the Associate Experience, the Customer Experience, and the Community Experience.
- We further strengthened and diversified our Board of Directors with the addition of Nancy Twine, founder and CEO of Briogeo Hair Care, bringing our female board representation to
60% , making us one of only8% of the Russell 3000 Index companies with gender-balanced boards according to the 50/50 Women on Boards Gender Diversity Directory™.”
Looking Ahead
Wallstrom concluded, “We are committed to being a purpose-driven, multi-lifestyle brand, stable-growth company, generating strong cash flow. Our strong cash position, debt-free balance sheet, and ability to generate free cash flow has positioned us to continue to invest in our two lifestyle brands; seek out accretive acquisitions of cash-generating, purpose-driven brands over time; and return capital to shareholders through continued share repurchases or future dividends.
“Although Fiscal 2022 had its short-term challenges, and Fiscal 2023 will still be filled with inflationary challenges, we have a solid long-term vision for the future of our Company and a clear path to achieve our goals. Our team is focused, our balance sheet is solid, our brands are strong, and we are positioned for long-term, stable growth. We remain excited about the opportunities for Vera Bradley, Inc.”
Non-GAAP Numbers
The current year non-GAAP fourth quarter and fiscal year income statement numbers referenced below primarily exclude the previously outlined intangible asset amortization. The prior year non-GAAP income statement numbers for the fourth quarter referenced below exclude the previously outlined store impairment charges and intangible asset amortization. The prior year non-GAAP income statement numbers for the fiscal year referenced below exclude the previously outlined intangible asset amortization, store impairment charges, Project Novus expenses, charges related to the cancellation of certain purchase orders resulting from COVID-19, an adjustment to the Pura Vida earn-out liability, and certain department store exit costs resulting from COVID-19.
Fourth Quarter Details
Current year fourth quarter Vera Bradley Direct segment revenues totaled
Vera Bradley Indirect segment revenues totaled
Pura Vida segment revenues totaled
Fourth quarter consolidated gross profit totaled
Consolidated SG&A expense totaled
The Company’s fourth quarter consolidated operating income totaled
By segment:
- Vera Bradley Direct fourth quarter operating income was
$21.7 million , or20.7% of Direct net revenues, compared to$16.9 million , or18.2% of Direct net revenues, in the prior year. On a non-GAAP basis, current year Direct fourth quarter operating income was$21.7 million , or20.8% of Direct net revenues, compared to$20.5 million , or22.1% of Direct net revenues, in the prior year. - Vera Bradley Indirect fourth quarter operating income was
$2.9 million , or22.5% of Indirect net revenues, compared to$5.9 million , or39.0% of Indirect net revenues, in the prior year. - Pura Vida’s current year fourth quarter operating income was
$2.0 million , or6.2% of Pura Vida net revenues, compared to$4.0 million , or11.7% of Pura Vida net revenues, in the prior year. On a non-GAAP basis, Pura Vida’s current year fourth quarter operating income was$2.8 million , or8.6% of Pura Vida net revenues, compared to$6.0 million , or17.6% of Pura Vida net revenues, in the prior year.
Details for the Fiscal Year
Vera Bradley Direct segment revenues for the current fiscal year totaled
Vera Bradley Indirect segment revenues for the fiscal year totaled
Pura Vida segment revenues totaled
Consolidated gross profit for the current fiscal year totaled
For the fiscal year, consolidated SG&A expense totaled
For the fiscal year, the Company’s consolidated operating income totaled
By segment:
- Vera Bradley Direct operating income was
$73.5 million , or20.7% of Direct net revenues, compared to$48.5 million , or16.8% of Direct net revenues, in the prior year. On a non-GAAP basis, Direct operating income was$73.6 million , or20.7% of Direct net revenues, for the current year, compared to$59.0 million , or20.4% of Direct net revenues, in the prior year. - Vera Bradley Indirect operating income was
$20.3 million , or30.8% of Indirect net revenues, compared to$24.5 million , or36.8% of Indirect net revenues, in the prior year. On a non-GAAP basis, prior year Indirect operating income totaled$24.9 million , or37.4% of Indirect net revenues. - Pura Vida’s operating income was
$9.5 million , or8.0% of Pura Vida net revenues, compared to$8.0 million , or7.1% of Pura Vida net revenues, in the prior year. On a non-GAAP basis, Pura Vida’s operating income was$12.6 million , or10.5% of Pura Vida net revenues, for the current year, compared to$17.0 million , or15.1% of Pura Vida net revenues, in the prior year.
Balance Sheet
Net capital spending for the fiscal year totaled
Cash, cash equivalents, and investments as of January 29, 2022 totaled
Total fiscal year-end inventory was
During the fourth quarter, the Company repurchased approximately
Fiscal 2023 Outlook
Management is providing estimates for the fiscal year ending January 28, 2023 (“Fiscal 2023”) based on current trends and expectations, taking into account certain industry and economic headwinds (such as continued freight and digital marketing increases).
All forward-looking guidance numbers referenced below are non-GAAP. The prior year SG&A, operating income, and earnings per diluted share numbers exclude the previously disclosed intangible asset amortization. Current year guidance excludes any similar charges.
For Fiscal 2023, the Company’s expectations are as follows:
- Consolidated net revenues of
$555 t o$575 million . Net revenues totaled$540.5 million in Fiscal 2022. Year-over-year Vera Bradley revenues are expected to grow in the low-to mid-single digit range, and Pura Vida revenues are expected to be flat to up by low-single digits. - Free cash flow of between
$35 and$45 million compared to$34.4 million in the prior year. - A consolidated gross profit percentage of
54.5% to55.0% compared to53.3% in Fiscal 2022. The year-over-year increase is primarily related to retail price increases, partially offset by incremental inbound and outbound freight costs. No GSP benefit is included in gross margin guidance. - Consolidated SG&A expense of
$273 t o$281 million compared to$258.8 million in Fiscal 2022. The expected SG&A increase is primarily related to inflationary increases in payroll and marketing as well as general variable increases associated with higher sales expectations. - Consolidated operating income of
$29.5 t o$35.5 million compared to$30.1 million in Fiscal 2022. - Consolidated diluted EPS of
$0.57 t o$0.67 b ased on diluted weighted-average shares outstanding of 33.3 million and an effective tax rate of between23.0% and24.0% . Diluted EPS totaled$0.57 last year. - Net capital spending of approximately
$10 t o$12 million compared to$5.5 million in the prior year, reflecting investments associated with new Vera Bradley factory and Pura Vida store locations and technology and logistics enhancements.
Disclosure Regarding Non-GAAP Measures
The Company's management does not, nor does it suggest that investors should, consider the supplemental non-GAAP financial measures in isolation from, or as a substitute for, financial information prepared in accordance with accounting principles generally accepted in the United States (“GAAP”). Further, the non-GAAP measures utilized by the Company may be unique to the Company, as they may be different from non-GAAP measures used by other companies.
The Company believes that the non-GAAP measures presented in this earnings release, including free cash flow; gross profit; selling, general, and administrative expenses; operating income; net income; net income attributable and available to Vera Bradley, Inc.; and diluted net income per share available to Vera Bradley, Inc. common shareholders, along with the associated percentages of net revenues, are helpful to investors because they allow for a more direct comparison of the Company’s year-over-year performance and are consistent with management’s evaluation of business performance. A reconciliation of the non-GAAP measures to the most directly comparable GAAP measures can be found in the Company’s supplemental schedules included in this earnings release.
Call Information
A conference call to discuss results for the fourth quarter and fiscal year is scheduled for today, Wednesday, March 9, 2022, at 9:30 a.m. Eastern Time. A broadcast of the call will be available via Vera Bradley’s Investor Relations section of its website, www.verabradley.com. Alternatively, interested parties may dial into the call at (323) 289-6576, and enter the access code 9180791. A replay will be available shortly after the conclusion of the call and remain available through March 23, 2022. To access the recording, listeners should dial (412) 317-6671, and enter the access code 9180791.
About Vera Bradley, Inc.
Vera Bradley, Inc. operates two unique lifestyle brands – Vera Bradley and Pura Vida. Vera Bradley and Pura Vida are complementary businesses, both with devoted, emotionally-connected, and multi-generational female customer bases; alignment as causal, comfortable, affordable, and fun brands; positioning as “gifting” and socially-connected brands; strong, entrepreneurial cultures; a keen focus on community, charity, and social consciousness; multi-channel distribution strategies; and talented leadership teams aligned and committed to the long-term success of their brands.
Vera Bradley, based in Fort Wayne, Indiana, is a leading designer of women’s handbags, luggage and other travel items, fashion and home accessories, and unique gifts. Founded in 1982 by friends Barbara Bradley Baekgaard and Patricia R. Miller, the brand is known for its innovative designs, iconic patterns, and brilliant colors that inspire and connect women unlike any other brand in the global marketplace.
In July 2019, Vera Bradley, Inc. acquired a
The Company has three reportable segments: Vera Bradley Direct (“VB Direct”), Vera Bradley Indirect (“VB Indirect”), and Pura Vida. The VB Direct business consists of sales of Vera Bradley products through Vera Bradley full-line and factory outlet stores in the United States, verabradley.com, verabradley.ca, Vera Bradley’s online outlet site, and the Vera Bradley annual outlet sale in Fort Wayne, Indiana. The VB Indirect business consists of sales of Vera Bradley products to approximately 1,800 specialty retail locations throughout the United States, as well as select department stores, national accounts, third party e-commerce sites, and third-party inventory liquidators, and royalties recognized through licensing agreements related to the Vera Bradley brand. The Pura Vida segment consists of sales of Pura Vida products through the Pura Vida websites, www.puravidabracelets.com, www.puravidabracelets.eu, and www.puravidabracelets.ca, and through the distribution of its products to wholesale retailers and department stores.
Website Information
We routinely post important information for investors on our website www.verabradley.com in the "Investor Relations" section. We intend to use this webpage as a means of disclosing material, non-public information and for complying with our disclosure obligations under Regulation FD. Accordingly, investors should monitor the Investor Relations section of our website, in addition to following our press releases, SEC filings, public conference calls, presentations and webcasts. The information contained on, or that may be accessed through, our webpage is not incorporated by reference into, and is not a part of, this document.
Investors and other interested parties may also access the Company’s most recent Corporate Responsibility and Sustainability Report outlining its ESG (Environmental, Social, and Governance) initiatives at https://www.verabradley.com/us/static/customerservice/corporateresponsibility.
Vera Bradley Safe Harbor Statement
Certain statements in this release are "forward-looking statements" made pursuant to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements reflect the Company's current expectations or beliefs concerning future events and are subject to various risks and uncertainties that may cause actual results to differ materially from those that we expected, including: possible adverse changes in general economic conditions and their impact on consumer confidence and spending; possible inability to predict and respond in a timely manner to changes in consumer demand; possible loss of key management or design associates or inability to attract and retain the talent required for our business; possible inability to maintain and enhance our brands; possible inability to successfully implement the Company’s long-term strategic plan; possible inability to successfully open new stores, close targeted stores, and/or operate current stores as planned; incremental tariffs or adverse changes in the cost of raw materials and labor used to manufacture our products; possible adverse effects resulting from a significant disruption in our distribution facilities; or business disruption caused by COVID-19 or other pandemics. Risks, uncertainties, and assumptions also include the possibility that Pura Vida acquisition benefits may not materialize as expected and that Pura Vida’s business may not perform as expected. More information on potential factors that could affect the Company’s financial results is included from time to time in the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of the Company’s public reports filed with the SEC, including the Company’s Form 10-K for the fiscal year ended January 30, 2021. We undertake no obligation to publicly update or revise any forward-looking statement. Financial schedules are attached to this release.
CONTACTS:
Investors:
Julia Bentley, VP of Investor Relations and Communications
jbentley@verabradley.com
(260) 207-5116
Media:
mediacontact@verabradley.com
877-708-VERA (8372)
| Vera Bradley, Inc. | |||||||
| Condensed Consolidated Balance Sheets | |||||||
| (in thousands) | |||||||
| (unaudited) | |||||||
| January 29, 2022 | January 30, 2021 | ||||||
| Assets | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 88,436 | $ | 64,175 | |||
| Short-term investments | - | 1,295 | |||||
| Accounts receivable, net | 20,681 | 27,543 | |||||
| Inventories | 149,192 | 141,416 | |||||
| Income taxes receivable | 9,391 | 7,372 | |||||
| Prepaid expenses and other current assets | 15,928 | 17,882 | |||||
| Total current assets | 283,628 | 259,683 | |||||
| Operating right-of-use assets | 79,873 | 88,730 | |||||
| Property, plant, and equipment, net | 59,941 | 63,952 | |||||
| Intangible assets, net | 44,223 | 47,296 | |||||
| Goodwill | 44,254 | 44,254 | |||||
| Deferred income taxes | 3,857 | 3,530 | |||||
| Other assets | 6,081 | 6,342 | |||||
| Total assets | $ | 521,857 | $ | 513,787 | |||
| Liabilities, Redeemable Noncontrolling Interest, and Shareholders' Equity | |||||||
| Current liabilities: | |||||||
| Accounts payable | $ | 34,803 | $ | 27,093 | |||
| Accrued employment costs | 12,463 | 13,648 | |||||
| Short-term operating lease liabilities | 18,699 | 22,321 | |||||
| Other accrued liabilities | 16,422 | 14,043 | |||||
| Income taxes payable | - | 321 | |||||
| Total current liabilities | 82,387 | 77,426 | |||||
| Long-term operating lease liabilities | 80,861 | 91,536 | |||||
| Other long-term liabilities | 195 | 109 | |||||
| Total liabilities | 163,443 | 169,071 | |||||
| Redeemable noncontrolling interest | 30,974 | 29,809 | |||||
| Shareholders' equity: | |||||||
| Additional paid-in-capital | 107,907 | 105,433 | |||||
| Retained earnings | 334,364 | 316,526 | |||||
| Accumulated other comprehensive (loss) income | (29 | ) | 8 | ||||
| Treasury stock | (114,802 | ) | (107,060 | ) | |||
| Total shareholders' equity of Vera Bradley, Inc. | 327,440 | 314,907 | |||||
| Total liabilities, redeemable noncontrolling interest, and shareholders' equity | $ | 521,857 | $ | 513,787 | |||
| Vera Bradley, Inc. | |||||||||||||
| Condensed Consolidated Statements of Operations | |||||||||||||
| (in thousands, except per share amounts) | |||||||||||||
| (unaudited) | |||||||||||||
| Thirteen Weeks Ended | Fifty-Two Weeks Ended | ||||||||||||
| January 29, 2022 | January 30, 2021 | January 29, 2022 | January 30, 2021 | ||||||||||
| Net revenues | $ | 149,576 | $ | 142,369 | $ | 540,453 | $ | 468,272 | |||||
| Cost of sales | 73,436 | 64,491 | 252,510 | 202,754 | |||||||||
| Gross profit | 76,140 | 77,878 | 287,943 | 265,518 | |||||||||
| Selling, general, and administrative expenses | 67,910 | 68,948 | 261,993 | 252,588 | |||||||||
| Other income, net | 40 | 46 | 961 | 135 | |||||||||
| Operating income | 8,270 | 8,976 | 26,911 | 13,065 | |||||||||
| Interest expense, net | 41 | 348 | 263 | 1,203 | |||||||||
| Income before income taxes | 8,229 | 8,628 | 26,648 | 11,862 | |||||||||
| Income tax expense (benefit) | 2,576 | (297 | ) | 6,430 | 1,173 | ||||||||
| Net income | 5,653 | 8,925 | 20,218 | 10,689 | |||||||||
| Less: Net income attributable to redeemable noncontrolling interest | 498 | 997 | 2,380 | 2,008 | |||||||||
| Net income attributable to Vera Bradley, Inc. | $ | 5,155 | $ | 7,928 | $ | 17,838 | $ | 8,681 | |||||
| Basic weighted-average shares outstanding | 33,583 | 33,414 | 33,785 | 33,390 | |||||||||
| Diluted weighted-average shares outstanding | 34,272 | 34,291 | 34,437 | 33,914 | |||||||||
| Basic net income per share available to Vera Bradley, Inc. common shareholders | $ | 0.15 | $ | 0.24 | $ | 0.53 | $ | 0.26 | |||||
| Diluted net income per share available to Vera Bradley, Inc. common shareholders | $ | 0.15 | $ | 0.23 | $ | 0.52 | $ | 0.26 | |||||
| Vera Bradley, Inc. | ||||||||||
| Condensed Consolidated Statements of Cash Flows | ||||||||||
| (in thousands) | ||||||||||
| (unaudited) | ||||||||||
| Fifty-Two Weeks Ended | ||||||||||
| January 29, 2022 | January 30, 2021 | |||||||||
| Cash flows from operating activities | ||||||||||
| Net income | $ | 20,218 | $ | 10,689 | ||||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||
| Depreciation of property, plant, and equipment | 9,315 | 13,483 | ||||||||
| Amortization of operating right-of-use assets | 20,521 | 21,128 | ||||||||
| Impairment charges | 85 | 7,446 | ||||||||
| Amortization of intangible assets | 3,073 | 9,009 | ||||||||
| Provision for doubtful accounts | 101 | 1,333 | ||||||||
| Stock-based compensation | 4,930 | 5,651 | ||||||||
| Deferred income taxes | (327) | 4,126 | ||||||||
| Loss on investments | - | 13 | ||||||||
| Adjustment of earn-out liability | - | 229 | ||||||||
| Other non-cash gain, net | (37) | (1) | ||||||||
| Changes in assets and liabilities: | ||||||||||
| Accounts receivable | 6,761 | (5,579) | ||||||||
| Inventories | (7,776) | (17,810) | ||||||||
| Prepaid expenses and other assets | 2,215 | (7,940) | ||||||||
| Accounts payable | 7,521 | 7,353 | ||||||||
| Income taxes | (2,340) | (8,121) | ||||||||
| Operating lease liabilities, net | (25,961) | (22,680) | ||||||||
| Accrued and other liabilities | 1,562 | 2,373 | ||||||||
| Net cash provided by operating activities | 39,861 | 20,702 | ||||||||
| Cash flows from investing activities | ||||||||||
| Purchases of property, plant, and equipment | (5,489) | (5,743) | ||||||||
| Purchases of investments | - | (851) | ||||||||
| Proceeds from maturities and sales of investments | 1,290 | 23,281 | ||||||||
| Cash received for business acquisition | - | 993 | ||||||||
| Proceeds from disposal of property, plant, and equipment | 45 | - | ||||||||
| Net cash (used in) provided by investing activities | (4,154) | 17,680 | ||||||||
| Cash flows from financing activities | ||||||||||
| Tax withholdings for equity compensation | (2,456) | (575) | ||||||||
| Repurchase of common stock | (7,742) | (3,077) | ||||||||
| Distributions to redeemable noncontrolling interest | (1,215) | (1,817) | ||||||||
| Borrowings under asset-based revolving credit agreement | - | 60,000 | ||||||||
| Repayment of borrowings under asset-based revolving credit agreement | - | (60,000) | ||||||||
| Payment of contingent consideration for business acquisition | - | (18,677) | ||||||||
| Net cash used in financing activities | (11,413) | (24,146) | ||||||||
| Effect of exchange rate changes on cash and cash equivalents | (33) | 22 | ||||||||
| Net increase in cash and cash equivalents | $ | 24,261 | $ | 14,258 | ||||||
| Cash and cash equivalents, beginning of period | 64,175 | 49,917 | ||||||||
| Cash and cash equivalents, end of period | $ | 88,436 | $ | 64,175 | ||||||
| Vera Bradley, Inc. | |||||||||||||
| Fourth Quarter Fiscal 2022 | |||||||||||||
| GAAP to Non-GAAP Reconciliation Thirteen Weeks Ended January 29, 2022 | |||||||||||||
| (in thousands, except per share amounts) | |||||||||||||
| (unaudited) | |||||||||||||
| Thirteen Weeks Ended | |||||||||||||
| As Reported | Other Items | Non-GAAP (Excluding Items) | |||||||||||
| Gross profit | $ | 76,140 | $ | - | $ | 76,140 | |||||||
| Selling, general, and administrative expenses | 67,910 | 853 | 1 | 67,057 | |||||||||
| Operating income (loss) | 8,270 | (853 | ) | 9,123 | |||||||||
| Income (loss) before income taxes | 8,229 | (853 | ) | 9,082 | |||||||||
| Income tax expense (benefit) | 2,576 | (127 | ) | 2 | 2,703 | ||||||||
| Net income (loss) | 5,653 | (726 | ) | 6,379 | |||||||||
| Less: Net income (loss) attributable to redeemable noncontrolling interest | 498 | (192 | ) | 690 | |||||||||
| Net income (loss) attributable to Vera Bradley, Inc. | 5,155 | (534 | ) | 5,689 | |||||||||
| Diluted net income (loss) per share available to Vera Bradley, Inc. common shareholders | $ | 0.15 | $ | (0.02 | ) | $ | 0.17 | ||||||
| Vera Bradley Direct segment operating income (loss) | $ | 21,653 | $ | (85 | ) | 3 | $ | 21,738 | |||||
| Vera Bradley Indirect segment operating income | $ | 2,920 | $ | - | $ | 2,920 | |||||||
| Pura Vida segment operating income (loss) | $ | 1,991 | $ | (768 | ) | 4 | $ | 2,759 | |||||
| Unallocated corporate expenses | $ | (18,294 | ) | $ | - | $ | (18,294 | ) | |||||
| 1Items include | |||||||||||||
| 2Related to the tax impact of the charges mentioned above | |||||||||||||
| 3Related to store impairment charges | |||||||||||||
| 4Related to the amortization of definite-lived intangible assets | |||||||||||||
| Vera Bradley, Inc. | |||||||||||||
| Fourth Quarter Fiscal 2021 | |||||||||||||
| GAAP to Non-GAAP Reconciliation Thirteen Weeks Ended January 30, 2021 | |||||||||||||
| (in thousands, except per share amounts) | |||||||||||||
| (unaudited) | |||||||||||||
| Thirteen Weeks Ended | |||||||||||||
| As Reported | Other Items | Non-GAAP (Excluding Items) | |||||||||||
| Gross profit | $ | 77,878 | $ | - | $ | 77,878 | |||||||
| Selling, general, and administrative expenses | 68,948 | 5,662 | 1 | 63,286 | |||||||||
| Operating income (loss) | 8,976 | (5,662 | ) | 14,638 | |||||||||
| Income (loss) before income taxes | 8,628 | (5,662 | ) | 14,290 | |||||||||
| Income tax (benefit) expense | (297 | ) | (2,596 | ) | 2 | 2,299 | |||||||
| Net income (loss) | 8,925 | (3,066 | ) | 11,991 | |||||||||
| Less: Net income (loss) attributable to redeemable noncontrolling interest | 997 | (506 | ) | 1,503 | |||||||||
| Net income (loss) attributable to Vera Bradley, Inc. | 7,928 | (2,560 | ) | 10,488 | |||||||||
| Diluted net income (loss) per share available to Vera Bradley, Inc. common shareholders | $ | 0.23 | $ | (0.07 | ) | $ | 0.31 | ||||||
| Vera Bradley Direct segment operating income (loss) | $ | 16,890 | $ | (3,640 | ) | 3 | $ | 20,530 | |||||
| Vera Bradley Indirect segment operating income | $ | 5,927 | $ | - | $ | 5,927 | |||||||
| Pura Vida segment operating income (loss) | $ | 3,985 | $ | (2,022 | ) | 4 | $ | 6,007 | |||||
| Unallocated corporate expenses | $ | (17,826 | ) | $ | - | $ | (17,826 | ) | |||||
| 1Items include | |||||||||||||
| 2Related to the tax impact of the charges mentioned above | |||||||||||||
| 3Related to store impairment charges | |||||||||||||
| 4Related to the amortization of definite-lived intangible assets | |||||||||||||
| Vera Bradley, Inc. | |||||||||||||
| GAAP to Non-GAAP Reconciliation Fifty-Two Weeks Ended January 29, 2022 | |||||||||||||
| (in thousands, except per share amounts) | |||||||||||||
| (unaudited) | |||||||||||||
| Fifty-Two Weeks Ended | |||||||||||||
| As Reported | Other Items | Non-GAAP (Excluding Items) | |||||||||||
| Gross profit | $ | 287,943 | $ | - | $ | 287,943 | |||||||
| Selling, general, and administrative expenses | 261,993 | 3,158 | 1 | 258,835 | |||||||||
| Operating income (loss) | 26,911 | (3,158 | ) | 30,069 | |||||||||
| Income (loss) before income taxes | 26,648 | (3,158 | ) | 29,806 | |||||||||
| Income tax expense (benefit) | 6,430 | (554 | ) | 2 | 6,984 | ||||||||
| Net income (loss) | 20,218 | (2,604 | ) | 22,822 | |||||||||
| Less: Net income (loss) attributable to redeemable noncontrolling interest | 2,380 | (768 | ) | 3,148 | |||||||||
| Net income (loss) attributable to Vera Bradley, Inc. | 17,838 | (1,836 | ) | 19,674 | |||||||||
| Diluted net income (loss) per share available to Vera Bradley, Inc. common shareholders | $ | 0.52 | $ | (0.05 | ) | $ | 0.57 | ||||||
| Vera Bradley Direct segment operating income (loss) | $ | 73,506 | $ | (85 | ) | 3 | $ | 73,591 | |||||
| Vera Bradley Indirect segment operating income | $ | 20,323 | $ | - | $ | 20,323 | |||||||
| Pura Vida segment operating income (loss) | $ | 9,519 | $ | (3,073 | ) | 4 | $ | 12,592 | |||||
| Unallocated corporate expenses | $ | (76,437 | ) | $ | - | $ | (76,437 | ) | |||||
| 1Items include | |||||||||||||
| 2Related to the tax impact of the charges mentioned above | |||||||||||||
| 3Related to store impairment charges | |||||||||||||
| 4Related to the amortization of definite-lived intangible assets | |||||||||||||
| Vera Bradley, Inc. | |||||||||||||
| GAAP to Non-GAAP Reconciliation Fifty-Two Weeks Ended January 30, 2021 | |||||||||||||
| (in thousands, except per share amounts) | |||||||||||||
| (unaudited) | |||||||||||||
| Fifty-Two Weeks Ended | |||||||||||||
| As Reported | Other Items | Non-GAAP (Excluding Items) | |||||||||||
| Gross profit (loss) | $ | 265,518 | $ | (1,320 | ) | 1 | $ | 266,838 | |||||
| Selling, general, and administrative expenses | 252,588 | 19,635 | 2 | 232,953 | |||||||||
| Operating income (loss) | 13,065 | (20,955 | ) | 34,020 | |||||||||
| Income (loss) before income taxes | 11,862 | (20,955 | ) | 32,817 | |||||||||
| Income tax expense (benefit) | 1,173 | (5,985 | ) | 3 | 7,158 | ||||||||
| Net income (loss) | 10,689 | (14,970 | ) | 25,659 | |||||||||
| Less: Net income (loss) attributable to redeemable noncontrolling interest | 2,008 | (2,252 | ) | 4,260 | |||||||||
| Net income (loss) attributable to Vera Bradley, Inc. | 8,681 | (12,718 | ) | 21,399 | |||||||||
| Diluted net income (loss) per share available to Vera Bradley, Inc. common shareholders | $ | 0.26 | $ | (0.38 | ) | $ | 0.63 | ||||||
| Vera Bradley Direct segment operating income (loss) | $ | 48,524 | $ | (10,482 | ) | 4 | $ | 59,006 | |||||
| Vera Bradley Indirect segment operating income (loss) | $ | 24,502 | $ | (387 | ) | 5 | $ | 24,889 | |||||
| Pura Vida segment operating income (loss) | $ | 8,031 | $ | (9,009 | ) | 6 | $ | 17,040 | |||||
| Unallocated corporate expenses | $ | (67,992 | ) | $ | (1,077 | ) | 7 | $ | (66,915 | ) | |||
| 1Related to charges for the cancellation of certain purchase orders as a result of COVID-19 | |||||||||||||
| 2Items include | |||||||||||||
| 3Related to the tax impact of the charges mentioned above | |||||||||||||
| 4Related to | |||||||||||||
| 5Related to | |||||||||||||
| 6Related to the amortization of definite-lived intangible assets | |||||||||||||
| 7Related to | |||||||||||||
| Vera Bradley, Inc. | |||||||
| Free Cash Flow Reconciliation | |||||||
| (in thousands) | |||||||
| (unaudited) | |||||||
| Fifty-Two Weeks Ended | |||||||
| January 29, 2022 | January 30, 2021 | ||||||
| Net cash provided by operating activities | $ | 39,861 | $ | 20,702 | |||
| Purchases of property, plant, and equipment | (5,489 | ) | (5,743 | ) | |||
| Free cash flow | $ | 34,372 | $ | 14,959 | |||
FAQ
What were Vera Bradley's total revenues for Fiscal 2022?
What is the EPS for Vera Bradley for the fiscal year ending January 29, 2022?
What challenges did Vera Bradley face in Fiscal 2022?
What is the fiscal outlook for Vera Bradley for Fiscal 2023?
How much cash does Vera Bradley have?
