Vera Bradley Hurt by Stubborn Macro Headwinds in Q2, Stocks Fall

Vera Bradley, Inc. The company’s shares (NASDAQ:VRA) are trading lower on Wednesday.

The company said second-quarter adjusted earnings per share were 13 cents, missing the street forecast of 21 cents. Quarterly revenue of $110.82 million was below analysts’ consensus of $123.01 million.

“Our results for the period were also impacted by persistent consumer-related macro headwinds, which overshadowed key successes in several areas of business improvement as we reported revenue trends similar to those in the first quarter,” said Jackie Ardrey, Chief Executive Officer.

Vera Bradley Direct segment revenues totaled $72.2 million, down 15.7% from $85.7 million in the prior-year second quarter. Comparable sales declined 11.2% in the second quarter, with weakness across all direct channels.

Also read: Designer Brands’ Problems in Q2: Unattainable Profits, Declining Like-For-Like Sales and Lower Outlook

Vera Bradley Indirect segment revenues totaled $21.8 million, up 25.3% from $17.4 million in the prior-year second quarter. The increase was primarily due to increased sales to key accounts, as well as increased liquidation sales.

Pura Vida segment revenues totaled $16.8 million, down 33% from $25.1 million in the prior year, driven by declines in e-commerce and wholesale sales, partially offset by growth in new stores.

Second-quarter consolidated gross profit was $56.4 million, or 50.9% of net revenue, compared with $72.0 million, or 56.2%, a year ago. The decrease was due to increased liquidation sales and increased promotions.

Cash and cash equivalents as of August 3 totaled $44.1 million.

Perspectives:Vera Bradley forecasts fiscal 2025 revenue of $410 million, down from the estimate of $452.15 million and the previous range of $460 million to $480 million. It also forecasts consolidated diluted earnings per share of about $0.10, down from the estimate of $0.35 and the previous range of $0.54 to $0.62.

Price action: VRA shares are trading down 10.2% to $4.47 in pre-market trading, last checked on Wednesday.

Photo via Wikimedia Commons

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This article Vera Bradley Hit by Persistent Macro Headwinds in Q2, Stocks Fall originally appeared on Benzinga.com