Wed, Jun 12, 6:23 PM (87 days ago)
Vera Bradley, Inc.'s Q1 2024 report reveals a challenging quarter with net revenues declining by 14.6% year-over-year to $80.6 million. The gross profit margin fell to 52.0% from 54.8%, impacted by one-time vendor charges and timing shifts of the Annual Outlet Sale. SG&A expenses decreased by 8.0% to $53.8 million but still represented a higher percentage of net revenues (66.7% vs. 62.0%) due to sales deleverage. The company reported a net loss of $8.1 million, up from $4.7 million in the prior year, primarily due to reduced revenues and gross margins. Segment-wise, VB Direct saw a 4.2% revenue decline, while VB Indirect and Pura Vida experienced sharper drops of 25.0% and 37.0%, respectively. Operating income for VB Direct and VB Indirect segments decreased, and Pura Vida turned to an operating loss. Cash flow from operations was negative at $14.5 million, impacted by higher net losses and changes in working capital. The company repurchased $6.3 million in common stock during the quarter. Looking ahead, Vera Bradley continues to focus on Project Restoration and cost-saving initiatives to drive long-term growth. The uncertain macroeconomic environment and inflationary pressures remain key challenges.