Vera Bradley Posts Q1 Loss On Charges; Updates FY16 Guidance - Quick Facts

(RTTNews) - Vera Bradley Inc. (VRA) reported a first-quarter loss from continuing operations of $4.1 million, or $0.10 per share. The results included net after-tax charges of $4.2 million. Excluding charges, the company reported net income from continuing operations of $0.1 million, or breakeven per share. In the prior year first quarter, net income from continuing operations totaled $6.9 million, or $0.17 per share.

On average, ten analysts polled by Thomson Reuters expected the company to report profit per share of $0.02 for the quarter. Analysts' estimates typically exclude special items.

Net revenues from continuing operations were $101.1 million, compared to $112.2 million, prior year. Analysts expected revenue of $105.48 million for the quarter.

Robert Wallstrom, CEO, said: "Excluding the charges, we achieved first quarter EPS at the low end of our guidance. Reduced promotional activity led to better-than-planned gross margin rate performance while revenues fell below our expectations."

For the second quarter of fiscal 2016, the company expects: net revenues of $116 million to $120 million; and earnings per share from continuing operations of $0.10 to $0.13. Analysts expect the company to report second-quarter earnings per share of $0.17 on revenue of $121.21 million.

For fiscal 2016, Vera Bradley has updated its guidance, which excludes the first quarter charges. The company now expects: net revenues of $480 million to $495 million; and earnings per share from continuing operations of $0.64 to $0.74. Analysts expect the company to report fiscal 2016 earnings per share of $0.84 on revenue of $512.67 million.