Vera Bradley (NASDAQ:VRA), the company behind the TikTok-approved quilted bags, handily beat earnings expectations and raised its full-year guidance despite seeing a drop in revenue amidst challenging market conditions.
The Indiana-based company topped earnings per share estimates of $0.09 with a reported $0.19 on a non-GAAP basis.
Shares of Vera Bradley (NASDAQ:VRA) rose 9.6% in early trading Wednesday at $7.58.
However, total revenues for the three months to October 28, 2023 totaled $115 million, a decrease from $124 million in the prior year's third quarter and short of the $123 million Street estimates.
“We continue to diligently manage our debt-free balance sheet, adding to our year-over-year cash position while strategically lowering our inventory levels,” Jackie Ardey, Vera Bradley’s CEO said in a statement accompanying the results.
The CEO added that strength in this area is “important in navigating an uncertain retail environment.”
Pura Vida, part of the Vera Bradley portfolio, experienced a year-over-year sales decline of 18.3%. Despite this, strategic expense management contributed to an improvement in Pura Vida's operating income.
The firm is making “meaningful progress” on its long-term strategic plan, Project Restoration, focusing on four key pillars of the business for each brand – Consumer, Brand, Product, and Channel, which it hopes will drive long-term profitable growth.
Looking ahead, Vera Bradley updated its guidance for fiscal 2024, anticipating consolidated net revenues of $472 to $478 million. The company aims for a consolidated gross profit percentage of 54.0% to 54.5% and consolidated operating income of $23.3 to $25.9 million.