Vera Bradley (VRA) Tops Q3 EPS by 1c; Offers Light Q4 Outlook; Enters New Licensing Agreements
Vera Bradley (Nasdaq: VRA) reported Q3 EPS of $0.24, $0.01 better than the analyst estimate of $0.23. Revenue for the quarter came in at $126.7 million versus the consensus estimate of $129.55 million.
Vera Bradley also announced it has entered into three additional licensing agreements in the areas of home, hosiery, and swim. The Company previously announced licensing arrangements for stationery and publishing.
Rob Wallstrom, Chief Executive Officer of Vera Bradley, noted, “We are excited about the expansion of our products through licensing which should increase our brand exposure, allow us to acquire new customers, provide additional distribution, drive traffic to our digital flagship, and position us for eventual international growth.”
“We have targeted the areas of home, fashion, and beauty for licensing, and we continue to be pleased with the amount of interest we are receiving from high-quality potential partners,” commented Sue Fuller, Chief Merchandising Officer for Vera Bradley. “Our beautiful and unique patterns are perfect for these key categories.”
The Company has entered into partnerships with:
- Peking Handicraft Inc. for decorative bedding, area rugs, and kitchen textiles with distribution beginning in Fall 2017;
- Renfro Corporation for hosiery, tights, boot liners, and slipper socks with distribution beginning in Fall 2017; and
- Mainstream Swimsuits, Inc. for swimwear and cover-ups with distribution beginning in Spring 2017.
These products will be sold in appropriate distribution channels including Vera Bradley stores, verabradley.com, and specialty and chain stores throughout the country.
Vera Bradley will work with the licensing partners in the development and final approval of all product designs. Management does not expect licensing partnerships to have a material impact on the company’s financial performance for the fiscal years ending January 28, 2017 and February 3, 2018.
GUIDANCE:
Vera Bradley sees Q4 2017 EPS of $0.23-$0.25, versus the consensus of $0.47. Vera Bradley sees Q4 2017 revenue of $135-140 million, versus the consensus of $158.8 million.
Vera Bradley sees FY2017 EPS of $0.62-$0.65, versus the consensus of $0.90. Vera Bradley sees FY2017 revenue of $486-491 million, versus the consensus of $512.6 million.
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