Vera Bradley (NASDAQ: VRA) reported Q2 EPS of $0.26, $0.10 better than the analyst estimate of $0.16. Revenue for the quarter came in at $113.6 million versus the consensus estimate of $113.14 million.

• Second quarter net income totaled $9.3 million, or $0.26 per diluted share, ahead of $0.15 to $0.17 per diluted share guidance
• Second quarter net revenues totaled $113.6 million, in line with guidance
• Increased full-price selling helped drive 160 basis point gross profit margin increase in the second quarter
• Second quarter ended with a strong cash and investment position of $144.8 million, no debt, and year-over-year inventories down 17.1% to $86.3 million
• Management increases annual diluted EPS guidance range to $0.55 to $0.62, from $0.40 to $0.50 previously

Robert Wallstrom, Chief Executive Officer, said, “We are very pleased that our second quarter results exceeded both expectations and last year’s performance, primarily driven by a higher-than-expected gross margin rate related to reduced clearance, improved full-price selling, and freight and shipping efficiencies, as well as better-than-expected SG&A expense management. Revenues were in line with our guidance.”

Wallstrom continued, “At this time last year, we initiated Vision 20/20, our plan to strengthen our brand and financial health by drastically reducing clearance revenues and realigning our expense structure in order to create a solid foundation for future growth. We have made tremendous headway against our initiatives over the last year and especially in the last six months. So far this year, we have reduced clearance activity in our full-line stores and on verabradley.com by over 70% and increased full-price selling in these channels by over 20%. We are continuing to drive brand desirability through product innovation and targeted marketing while achieving meaningful expense reductions through diligent expense management. We also increased our year-over-year cash and investment balances by over $40 million to $144.8 million.”

“By executing Vision 20/20, our business and brand are becoming healthier, and cash flow is improving. We are laying the foundation for long-term operating performance improvement and growth of the business and continue to be excited about Vera Bradley’s future,” Wallstrom concluded.

GUIDANCE:

Vera Bradley sees FY2019 EPS of $0.55-$0.62, versus the consensus of $0.49. Vera Bradley sees FY2019 revenue of $0 million, versus the consensus of $413.85 million.

For earnings history and earnings-related data on Vera Bradley (VRA) click here.