Vera Bradley, Inc. (VRA) Tops Q3 EPS by 4c; Comps Down 6.5%; Issues Light Q4, FY14 Outlook
Vera Bradley, Inc. (NASDAQ: VRA) reported Q3 EPS of $0.37, $0.04 better than the analyst estimate of $0.33. Revenue for the quarter came in at $130.1 million versus the consensus estimate of $129.27 million.
Comparable-store sales decreased 6.5% during the quarter primarily due to lower traffic and underperformance of the product offering. E-commerce revenue decreased 7.8% compared to the prior year, as a result of both lower traffic and lower average transaction size. Indirect segment revenues decreased 17.3% to $61.2 million, primarily due to cautious ordering from the Company's specialty retailers.
Robert Wallstrom, Chief Executive Officer, stated, "While third quarter sales and earnings results were in line with our expectations, based on recent trends we are lowering our fourth quarter outlook. Although we face a persistently challenging retail environment, we are working diligently to make improvements in our organization that will enable us to stabilize the business and generate more consistent sales and earnings growth over the long term. "
Mr. Wallstrom continued, "Upon joining the Company I have come to more fully appreciate Vera Bradley's rich history as an authentic American brand with a highly loyal customer following. I see tremendous opportunity to broaden our customer base, enter new markets, and expand the product offering. Over the next several months I will be evaluating several areas of the business, focusing on the product assortment and the indirect and direct distribution channels, including e-commerce, in order to develop a strategic plan that will drive improved financial performance and increase long-term shareholder value."
Sees Q4 2014 EPS of $0.44-$0.47, versus the consensus of $0.56. Also sees Q4 2014 revenue of $145-150 million, versus the consensus of $159.31 million.
Sees FY2014 EPS of $1.41-$1.44, versus the consensus of $1.49. Also sees FY2014 revenue of $523-528 million, versus the consensus of $536.97 million.
For earnings history and earnings-related data on Vera Bradley, Inc. (VRA) click here.
Comparable-store sales decreased 6.5% during the quarter primarily due to lower traffic and underperformance of the product offering. E-commerce revenue decreased 7.8% compared to the prior year, as a result of both lower traffic and lower average transaction size. Indirect segment revenues decreased 17.3% to $61.2 million, primarily due to cautious ordering from the Company's specialty retailers.
Robert Wallstrom, Chief Executive Officer, stated, "While third quarter sales and earnings results were in line with our expectations, based on recent trends we are lowering our fourth quarter outlook. Although we face a persistently challenging retail environment, we are working diligently to make improvements in our organization that will enable us to stabilize the business and generate more consistent sales and earnings growth over the long term. "
Mr. Wallstrom continued, "Upon joining the Company I have come to more fully appreciate Vera Bradley's rich history as an authentic American brand with a highly loyal customer following. I see tremendous opportunity to broaden our customer base, enter new markets, and expand the product offering. Over the next several months I will be evaluating several areas of the business, focusing on the product assortment and the indirect and direct distribution channels, including e-commerce, in order to develop a strategic plan that will drive improved financial performance and increase long-term shareholder value."
Sees Q4 2014 EPS of $0.44-$0.47, versus the consensus of $0.56. Also sees Q4 2014 revenue of $145-150 million, versus the consensus of $159.31 million.
Sees FY2014 EPS of $1.41-$1.44, versus the consensus of $1.49. Also sees FY2014 revenue of $523-528 million, versus the consensus of $536.97 million.
For earnings history and earnings-related data on Vera Bradley, Inc. (VRA) click here.