Vera Bradley revenues shoot up over 30%
today Dec 11, 2019
Fort Wayne, Indiana-based accessories company Vera Bradley, Inc. announced a 30.5% increase in third-quarter net revenues on Wednesday, as the addition of sales from its recently acquired Pura Vida brand continued to drive gains.
For the third quarter ended November 2, 2019, Vera Bradley reported consolidated net revenues of $127.5 million, up from $97.7 million in the prior-year period. This total includes $25.0 million of revenues from Pura Vida, the digital-first jewelry brand that the company purchased in July.
Excluding the contribution of the new acquisition, Vera Bradley’s Q3 net revenues totaled $102.5 million, representing a 4.9% increase from the same period in the previous year, while comparable sales saw a 4.7% rise.
Broken down by distribution channel, the Vera Bradley brand’s direct segment experienced a 6.7% boost in revenues, while the indirect segment remained relatively flat compared to Q3 2019.
Although Pura Vida provided a significant lift to Vera Bradley’s revenues, costs related to its acquisition continued to have a negative impact on the company’s bottom line in Q3. The group’s quarterly net income therefore totaled $0.1 million, or $0.00 per diluted share, down from $4.2 million, or $0.12 per diluted share, in the prior-year period.
“The addition of the Pura Vida business to the Vera Bradley, Inc. portfolio has strengthened our position as a unique lifestyle company,” said Vera Bradley CEO Rob Wallstrom in a release. “We are sharing resources and expertise as we grow our brands together. Pura Vida is a great strategic fit for Vera Bradley with their expertise in social media and other digital marketing strategies, and Pura Vida has already begun to leverage Vera Bradley’s infrastructure, partnerships, and back office support services to bolster its growth.”
Year to date, Vera Bradley’s net revenues totaled $338.3 million, including a $30.4 million contribution from Pura Vida, a 13.6% increase from the $297.9 million reported by the company in the first three quarters of fiscal 2019.
Net income for the period was $3.6 million, or $0.11 per diluted share, down from $12.1 million, or $0.34 per diluted share.
Looking forward, Vera Bradley expects to post net revenues of between $155 million and $162 million in the fourth quarter of 2020, and diluted earnings per share in the range of $0.49 to $0.53.
The company’s full-year fiscal 2020 guidance predicts net revenues of between $492 million and $500 million, and diluted earnings per share in the range of $0.90 to $0.94
Copyright © 2020 FashionNetwork.com All rights reserved.