Vera Bradley Misses Where it Counts
Vera Bradley (NAS: VRA) reported earnings on Aug. 29. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended July 28 (Q2), Vera Bradley met expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share dropped.
Margins shrank across the board.
Vera Bradley reported revenue of $123.0 million. The nine analysts polled by S&P Capital IQ predicted revenue of $122.0 million on the same basis. GAAP reported sales were 19% higher than the prior-year quarter's $103.8 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.33. The 10 earnings estimates compiled by S&P Capital IQ forecast $0.35 per share. GAAP EPS of $0.33 for Q2 were 2.9% lower than the prior-year quarter's $0.34 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 55.8%, 170 basis points worse than the prior-year quarter. Operating margin was 17.7%, 440 basis points worse than the prior-year quarter. Net margin was 10.9%, 220 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $135.4 million. On the bottom line, the average EPS estimate is $0.38.
Next year's average estimate for revenue is $535.2 million. The average EPS estimate is $1.62.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 84 members out of 95 rating the stock outperform, and 11 members rating it underperform. Among 30 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 27 give Vera Bradley a green thumbs-up, and three give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Vera Bradley is outperform, with an average price target of $32.38.
With hundreds of companies like Vera Bradley competing for shoppers' limited dollars, strong brands matter. Household names can provide growth for even boring, mature companies -- as long as you choose the right ones. Learn about a few who have what it takes in "3 American Companies Set to Dominate the World." Click here for instant access to this free report.
- Add Vera Bradley to My Watchlist.
The article Vera Bradley Misses Where it Counts originally appeared on Fool.com.Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.