By FORT WAYNE, Ind. – Vera Bradley , Inc. (NASDAQ:VRA) reported second quarter earnings that beat expectations, but revenue fell short of analyst estimates, sending shares down sharply by 12.65% in Wednesday premarket trading.
The handbag and accessories maker posted adjusted earnings of $0.13 per share for the quarter ended August 3, exceeding the analyst consensus of $0.10 per share. However, revenue came in at $110.8 million, missing Wall Street’s forecast of $118.51 million.
Consolidated net revenues declined 13.5% compared to $128.2 million in the prior year second quarter. The company cited “stubbornly persistent macro consumer headwinds” that masked some successes in its business turnaround efforts.
“Our results for the period were influenced by stubbornly persistent macro consumer headwinds that masked key successes across several areas of our business turnaround, as we registered top-line trends similar to the first quarter,” said CEO Jackie Ardrey.
Vera Bradley Direct segment revenues fell 15.7% to $72.2 million, with comparable sales declining 11.2% in the quarter. The Pura Vida segment saw revenues drop 33% to $16.8 million due to decreases in both ecommerce and wholesale sales.
On a positive note, Vera Bradley Indirect segment revenues increased 25.3% to $21.8 million, primarily due to higher sales to key accounts and increased liquidation sales.
The company ended the quarter with $44.1 million in cash and no debt. Inventory levels were down nearly 5% YoY.
For fiscal 2025, Vera Bradley now expects consolidated net revenues of approximately $410 million, down from $470.8 million in fiscal 2024. It projects earnings per diluted share of about $0.10.
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