Vera Bradley Reports Decline in Earnings and Revenue

Vera Bradley, Inc. reports a decline in net income and EPS for Q2, missing analyst expectations. The forecasts for fiscal 2025 indicate further challenges, contributing to a 12% drop in pre-market shares, raising concerns for investors.

Date: 11-09-2024

AI Rating: 4

Vera Bradley, Inc. has reported a significant decline in financial performance for the second quarter of the fiscal year.

Net Income: The company disclosed a consolidated net income of $5.7 million, a decrease from $9.3 million in the same period last year, indicating a challenging year-over-year comparison.
Earnings Per Share (EPS): The EPS fell to $0.19 from $0.30, and when adjusted, it registered at $0.13 down from $0.33. This adjustment reflects a substantial shortfall compared to analyst expectations, which had forecasted an EPS of $0.16.
Revenue Growth: Vera Bradley's consolidated net revenues were reported at $110.8 million, declining from $128.2 million year over year. This performance also lagged behind analysts' estimate of $120.66 million, further compounding investor concerns.

The projected consolidated net revenues for Fiscal 2025 are approximately $410 million, with an EPS expectation of about $0.10. These figures suggest ongoing difficulties for the company and reflect cautious sentiment among investors.

The 12% decline in pre-market trading illustrates how this disappointing performance has negatively affected market perception.

Stocks: VRA