vera bradley inc (VRA) Snapshot

Vera Bradley, Inc. announced that Michael Ray has informed the Board of Directors that he plans to retire as CEO. The Board is conducting a search for his successor, and Mr. Ray will continue to serve as CEO until a successor is in place.

Vera Bradley, Inc. announced unaudited consolidated earnings results for the first quarter ended May 4, 2013. For the quarter, the company reported net revenues of $123,033,000 against $117,201,000 for the period ended April 28, 2012. Operating income was $15,190,000 against $20,810,000 for the period ended April 28, 2012. Income before income taxes was $15,049,000 against $20,619,000 for the period ended April 28, 2012. Net income was $9,189,000 against $12,626,000 for the period ended April 28, 2012. Diluted earnings per share were $0.23 against $0.31 for the period ended April 28, 2012. Net cash provided by operating activities was $14,879,000 against $30,683,000 for the period ended April 28, 2012. Purchases of property, plant, and equipment were $5,811,000 against $11,512,000 for the period ended April 28, 2012. Consolidated net revenues slightly exceeded guidance, including comparable store sales of 0.9% growth. For the second quarter of fiscal 2014, the company expects net revenues to be in a range of $123 million to $126 million, compared to $123 million in the second quarter of fiscal 2013. Gross margin expected to expand by approximately 200 basis points. Diluted earnings per share are expected to be in a range of $0.31 to $0.33. The earnings per share estimate assume an effective tax rate of 38.5%. The company expects direct segment net revenues to increase 16% to 19%, with comparable store sales in the range of flat to a decline of low single-digits. Indirect net revenue is anticipated to decline, in the high-teens, impacted by a short fall and the recently completed sell-in of fall collection. For fiscal 2014, the company expects net revenues to be in a range of $570 million to $575 million. Gross margin is expected to decline up to 20 basis points for the full year. Diluted earnings per share expected to be in a range of $1.74 to $1.78. This guidance includes an effective tax rate of 38.5%. Capital spending for the full year remains at approximately $20 million. The EPS range also includes an effective tax rate of 38.5%.

Vera Bradley, Inc. announced at its AGM held on May 30, 2013, shareholders ratified the appointment of Ernst & Young LLP to serve as the company’s independent registered public accounting firm for the fiscal year ending February 1, 2014.