Vera Bradley Updates Fourth Quarter and Fiscal Year 2013 Guidance
FORT WAYNE, Ind., Jan. 15, 2013 (GLOBE NEWSWIRE) -- Vera Bradley, Inc.
(Nasdaq:VRA) today updated its fourth quarter and fiscal year 2013 guidance.
For the fourth quarter, the Company expects net revenues to be in a range of
$149 million to $154 million, compared to the prior range of $147 million to
$152 million. Indirect net revenues are expected to grow in the low- to
mid-single digits versus prior guidance of low-single digits and comparable
store sales are expected to be flat compared to the prior year versus previous
guidance of low-single digit growth, primarily due to lower-than-expected
traffic during the holiday season.
Gross margin for the fourth quarter is expected to expand over the prior year
by approximately 140 basis points compared to the prior expectation of 130
basis points. Diluted earnings per share are expected to be in a range of
$0.56 to $0.58, compared to the prior expected range of $0.55 to $0.57. The
earnings per share estimate continues to assume an effective tax rate of 38%
and fully diluted weighted average shares outstanding of 40.6
million.Inventory growth expectations for the fourth quarter and first
quarter of fiscal 2014 remain 10 to 20 percent above net revenue growth rates.
For fiscal 2013, the Company now expects net revenues to be in a range of $528
million to $533 million.Indirect net revenue growth is expected to be in the
low-single digit range and comparable store sales growth is expected to be in
the low-single digits.Gross margin is expected to grow by approximately 100
basis points over the prior fiscal year.As a result, diluted earnings per
share for the full year are expected to be in a range of $1.64 to $1.66. The
earnings per share estimate continues to assume an effective tax rate of 37.5%
and fully diluted weighted average shares outstanding of 40.6 million.
"We are pleased with how our customers have responded to our brand during the
fourth quarter," commented Michael C. Ray, Vera Bradley's Chief Executive
Officer."While traffic in our comparable store base was a bit softer than
expected, we believe our overall sales performance demonstrates the benefits
of our multi-channel retail model."
The Company plans to report its fiscal year 2013 fourth quarter and full-year
results on Thursday, March 14, 2013, after the market close. The Company also
plans to hold a conference call to discuss its financial results the same day
at 4:30 p.m. Eastern Time.
The Company will be presenting at the 15th Annual ICR XChange Conference held
at the Fontainebleau Hotel in Miami Beach, Florida on Thursday, January 17,
2013 at 8:50 am Eastern Time. Michael Ray, Chief Executive Officer will host
the presentation.The audio portion of the presentation will be webcast live
at www.verabradley.com under the Investor Relations section. An archived
replay will be available two hours after the conclusion of the live event.
About Vera Bradley, Inc.
Vera Bradley infuses color into all aspects of women's lives with vibrant
handbags, accessories, luggage, eyewear, travel items and gifts. Founded in
1982 by Barbara Bradley Baekgaard and Patricia R. Miller, the brand inspires
women to "be colorful" with designs that reflect their personal style. As of
October 27, 2012, Vera Bradley accessories can be found in 64 retail stores in
the U.S., 11 outlet stores, approximately 3,300 specialty retailers and online
at verabradley.com. Vera Bradley employs approximately 2,000 and the
Company's fiscal 2012 sales were $461 million. The Company's commitment to
breast cancer research continues to expand through the Vera Bradley Foundation
for Breast Cancer. For more information about Vera Bradley (Nasdaq:VRA),
We routinely post important information for investors on our website
www.verabradley.com in the "Investor Relations" section.We intend to use this
website as a means of disclosing material, non-public information and for
complying with our disclosure obligations under Regulation FD.Accordingly,
investors should monitor the Investor Relations section of our website, in
addition to following our press releases, SEC filings, public conference
calls, presentations and webcasts.The information contained on, or that may
be accessed through, our website is not incorporated by reference into, and is
not a part of, this document.
Vera Bradley Safe Harbor Statement
Certain statements in this release are "forward-looking statements" made
pursuant to the safe-harbor provisions of the Private Securities Litigation
Reform Act of 1995. Such forward-looking statements reflect the Company's
current expectations or beliefs concerning future events and are subject to
various risks and uncertainties that may cause actual results to differ
materially from those that we expected, including: possible adverse changes in
general economic conditions and their impact on consumer confidence and
spending; possible inability to predict and respond in a timely manner to
changes in consumer demand; possible loss of key management or design
associates or inability to attract and retain the talent required for our
business; possible inability to maintain and enhance our brand; possible
inability to successfully implement our growth strategies or manage our
growing business; possible inability to successfully open new stores as
planned; and possible inability to sustain levels of comparable-store sales.
For a discussion of these and other risks and uncertainties that could cause
actual results to differ materially from those contained in our
forward-looking statements, please refer to "Risk Factors" in Part I, Item 1A
of our Annual Report on Form 10-K for the fiscal year ended January 28, 2012.
We undertake no obligation to publicly update or revise any forward-looking
statement. Financial schedules are attached to this release.
Paul G. Blair
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