Vera Bradley (VRA) Misses Q1 EPS by 2c; Trims FY16 EPS, Revenue Outlook
Vera Bradley (NASDAQ: VRA) reported Q1 EPS of $0.00, $0.02 worse than the analyst estimate of $0.02. Revenue for the quarter came in at $101.1 million versus the consensus estimate of $105.48 million.
Comments on the Quarter and Looking Ahead
Robert Wallstrom, Chief Executive Officer, noted, "Excluding the previously outlined charges, we achieved first quarter diluted EPS at the low end of our guidance. Reduced promotional activity led to better-than-planned gross margin rate performance while revenues fell below our expectations."
Wallstrom continued, "The progress we continue to make on our key initiatives is not yet reflected in our current financial results. We are not attracting enough new customers to the brand, and traffic and sales are still very challenging.
"However, the management team remains fully committed to our long-term strategic plan. Key elements of the plan are specifically designed to drive traffic and bring new customers to Vera Bradley. We will continue to innovate and modernize our products, increase exposure to our brand and offerings by prudently growing our distribution points, and drive brand and product awareness through our elevated marketing efforts."
Wallstrom concluded, "Growing Vera Bradley to a $1 billion company generating a high-teen operating margin remains our ultimate goal. However, until we begin to see recovery in the business, we cannot predict the timing of or provide additional updates on achieving those long-term financial targets."
Discontinued Operations
Vera Bradley sees Q1 2016 EPS of $0.10 - $0.13, versus the consensus of $0.17. Vera Bradley sees Q1 2016 revenue of $116 - $120 million, versus the consensus of $121.2 million.
Vera Bradley sees FY2016 EPS of $0.64 - $0.74, versus the consensus of $0.84 and prior expectations of $0.82 - $0.92. Vera Bradley sees FY2016 revenue of $480 - $495 million, versus the consensus of $512.7 million and prior expectations of $510 - $525 million.
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