Vera Bradley Announces Fourth Quarter and Fiscal Year 2013 Results
oFourth quarter net revenues increased 21% to $162.6 million; Direct net
revenues increased 27% and Indirect net revenues increased 11%.
oDiluted EPS were $0.62 for the fourth quarter, compared to $0.50 for the
same quarter of fiscal 2012, an increase of 24%.
oFull year net revenues increased 17% to $541.1 million; Direct net
revenues increased 30% and Indirect net revenues increased 6%.
oDiluted EPS were $1.70 for fiscal 2013, compared to $1.43 for fiscal 2012,
an increase of 19%.
FORT WAYNE, Ind., March 13, 2013 (GLOBE NEWSWIRE) -- Vera Bradley, Inc.
(Nasdaq:VRA) today announced its financial results for the fourth quarter and
fiscal year, representing the 14-week and 53-week periods ended February 2,
2013. The Company reported net revenues of $162.6 million for the fourth
quarter, compared to $134.5 million in the fourth quarter of fiscal 2012, an
increase of $28.0 million, or 21%. Diluted earnings per share for the quarter
were $0.62, an increase of 24% from diluted earnings per share in the fourth
quarter of fiscal 2012. The 53^rd week of fiscal 2013 contributed $4.9 million
of net revenues and approximately $0.02 per diluted share to both the full
year and fourth quarter of fiscal 2013.
"Fiscal 2013 represents another outstanding year for Vera Bradley, as
reflected in our record-setting fourth quarter and full year results,
particularly in the midst of a difficult consumer environment," said Michael
C. Ray, Very Bradley's Chief Executive Officer. "Despite current headwinds, I
feel confident in our team's ability to deliver on our fiscal 2014 priorities.
With our 30-year track record of success, we have a solid foundation and
strategies in place to achieve our long-term growth objectives."
Fourth Quarter Results
In the Direct segment, revenues increased 27% to $103.3 million, as a result
of growth across all of our channels. In our stores, net revenues grew 31%
during the quarter, due to the opening of 17 full-price and 3 outlet stores.
E-commerce revenue grew 23% due primarily to continued growth in website
traffic. Comparable store sales decreased 0.4%. Indirect revenues increased
11% to $59.2 million, primarily due to a strong sell-in of the winter
collection and the addition of Dillard's doors. Further, we shipped
approximately $2.8 million in sales that we had anticipated would be received
by our retail partners in the first quarter of fiscal 2014.
Gross profit for the quarter increased 24% to $94.1 million, resulting in
gross margin of 57.9%, compared to 56.4% in the prior year. The fourth quarter
increase in gross margin was due primarily to operational efficiencies,
including leveraging our overhead costs on increased units that supported our
sales growth, lower freight costs, and favorable channel mix driven by growth
in full-price stores.
Total SG&A expense was $55.8 million for the fourth quarter, compared to $45.0
million in the prior year. SG&A as a percentage of net revenues was 34.3% for
the fourth quarter, compared to 33.4% in the prior year, unfavorable by 90
basis points, primarily due to employee-related expenses and expenses to
support the launch of Vera Bradley Baby.
Operating income increased 22% to $40.0 million, or 24.6% of net revenues, in
the fourth quarter, compared to operating income of $32.7 million, or 24.3% of
net revenues, in the fourth quarter of fiscal 2012.
The effective tax rate was 36.9% for the quarter, compared to 38.1% in the
same quarter in the prior year. The effective tax rate reduction was
primarily related to state tax credits associated with the distribution center
Net income for the fourth quarter increased 25% from the prior year to $25.1
million, or $0.62 per diluted share, compared to $20.1 million, or $0.50 per
diluted share in the same period of the prior year.
Fiscal Year 2013 Results
For the fiscal year ended February 2, 2013, net revenues increased 17% to
$541.1 million, from $460.8 million for fiscal 2012. By segment, Direct
revenues increased 30% to $292.6 million, with comparable store sales
increasing 3.4%, and Indirect revenues increased 6% to $248.6 million.
Operating income for fiscal 2013 increased to $110.1 million, or 20.4% of net
revenues, compared to $96.2 million, or 20.9% of net revenues in the prior
The effective tax rate for fiscal 2013 was 37.1% compared to 39.0% for the
prior year. The effective tax rate reduction was primarily related to state
tax credits associated with the completion of our distribution center
expansion as well as other discrete items.
Net income for fiscal 2013 was $68.9 million, or $1.70 per diluted share,
compared to $57.9 million, or $1.43 per diluted share, in fiscal 2012.
Cash flows from operations for fiscal 2013 were $51 million. This allowed the
Company to reduce long-term debt by $10 million from the prior year and fund
the completion of the $22 million distribution center expansion.
For the first quarter of fiscal 2014, the Company expects net revenues to be
in the range of $120 to $122 million and diluted earnings per share to be in
the range of $0.20 to $0.22, based on diluted weighted-average shares
outstanding of 40.6 million.
For full-year fiscal 2014, the Company expects net revenues to be in the range
of $585 to $590 million and diluted earnings per share to be in the range of
$1.83 to $1.88, based on diluted weighted-average shares outstanding of 40.7
A conference call to discuss fourth quarter and fiscal year 2013 results is
scheduled for today, March 13, 2013, at 4:30 p.m. Eastern Time.A broadcast of
the call will be available via Vera Bradley's Investor Relations section of
its website, www.verabradley.com. In addition, a replay of the call will be
available shortly after the conclusion of the call and remain available until
March 27, 2013.To access the recording, listeners should dial (877) 870-5176,
and enter the access code, 3941497.
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
February 2, 2013, Vera Bradley accessories can be found in 65 retail stores in
the U.S., 11 outlet stores, approximately 3,400 specialty retailers and online
at verabradley.com. Vera Bradley employs approximately 2,400 and the company's
fiscal 2013 sales were $541 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), visit
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.
Vera Bradley, Inc.
Condensed Consolidated Balance Sheets
($ in thousands)
February 2, January 28,
Cash and cash equivalents $9,603 $4,922
Accounts receivable, net 34,811 38,097
Inventories 131,562 106,967
Prepaid expenses and other current assets 11,016 8,343
Deferred income taxes 11,348 8,010
Total current assets 198,340 166,339
Property, plant, and equipment, net 77,211 52,312
Other assets 1,768 862
Total assets $277,319 $219,513
Liabilities and Shareholders' Equity
Accounts payable $14,854 $27,276
Accrued employment costs 14,162 15,738
Other accrued liabilities 16,531 15,297
Income taxes payable 7,094 1,705
Current portion of long-term debt 58 89
Total current liabilities 52,699 60,105
Long-term debt 15,037 25,095
Deferred income taxes 6,078 4,205
Other long-term liabilities 9,250 6,101
Total liabilities 83,064 95,506
Additional paid-in-capital 75,675 73,590
Retained earnings 119,190 50,320
Accumulated other comprehensive (loss) income (610) 97
Total shareholders' equity 194,255 124,007
Total liabilities and shareholders' equity $277,319 $219,513
Vera Bradley, Inc.
Condensed Consolidated Statements of Income
($ in thousands, except per share amounts)
Fourteen Thirteen Fifty-Three Fifty-Two
Weeks Ended Weeks Ended Weeks Ended Weeks Ended
February 2, January 28, February 2, January 28,
2013 2012 2013 2012
Net revenues $162,564 $134,515 $541,148 $460,843
Cost of sales 68,425 58,642 232,867 203,220
Gross profit 94,139 75,873 308,281 257,623
Selling, general, and 55,790 44,953 204,412 169,427
Other income 1,617 1,746 6,277 7,975
Operating income 39,966 32,666 110,146 96,171
Interest expense, net 163 214 679 1,147
Income before income taxes 39,803 32,452 109,467 95,024
Income tax expense 14,674 12,350 40,597 37,103
Net income $25,129 $20,102 $68,870 $57,921
Basic weighted-average shares 40,563 40,507 40,536 40,507
Diluted weighted-average 40,595 40,555 40,571 40,542
Basic net income per share $0.62 $0.50 $1.70 $1.43
Diluted net income per share 0.62 0.50 1.70 1.43
Vera Bradley, Inc.
Condensed Consolidated Statements of Cash Flows
($ in thousands)
Fiscal Year Ended
February 2, January 28,
Cash flows from operating activities (unaudited)
Net income $68,870 $57,921
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization of property, plant, and 10,834 9,457
Provision for doubtful accounts 541 553
Loss on disposal of property, plant, and equipment 37 51
Stock-based compensation 2,763 1,591
Deferred income taxes (1,405) 1,638
Changes in assets and liabilities:
Accounts receivable 2,745 (4,350)
Inventories (25,088) (10,199)
Other assets (3,579) 137
Accounts payable (12,423) (2,736)
Income taxes payable 5,389 (8,305)
Accrued and other liabilities 2,808 5,758
Net cash provided by operating activities 51,492 51,516
Cash flows from investing activities
Purchases of property, plant, and equipment (35,893) (18,836)
Net cash used in investing activities (35,893) (18,836)
Cash flows from financing activities
Payments on financial-institution debt (106,000) (76,200)
Borrowings on financial-institution debt 96,000 34,450
Payments on vendor-financed debt (89) (83)
Shares surrendered for tax withholding (738) --
Other -- 76
Net cash used in financing activities (10,827) (41,757)
Effect of exchange rate changes on cash and cash (91) 46
Increase (decrease) in cash and cash equivalents $4,681 $(9,031)
Cash and cash equivalents, beginning of period 4,922 13,953
Cash and cash equivalents, end of period $9,603 $4,922
Supplemental disclosure of cash-flow information
Income taxes paid $35,983 $43,850
Interest paid $797 $956
Paul G. Blair
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