Published
Sep 3, 2015
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Vera Bradley struggles to catch up for the year financially in Q2 2015

Published
Sep 3, 2015

Vera Bradley on Wednesday announced its financial results for the second quarter and first six months of the fiscal year. The company reported an increase in revenues for the quarter and a decrease in net income.



Net revenues in the second quarter increased 1.5% to $120.7 million compared to $119 million in the second quarter of 2014, and net income for the quarter was $5.7 million compared to $7.9 million in the previous year.
 
Robert Wallstrom, Chief Executive Officer, noted, "We are pleased that better than expected revenue, gross margin rate performance, and disciplined expense management drove EPS above our guidance. Our comparable sales trend began to improve toward the end of the quarter, which we believe is reflective of our new product offerings, improved in-store execution, and our initial marketing efforts. Our better than planned revenues were generated in spite of reduced promotional activity."

Net revenues for the first half of the year was $221.8 million compared to $231.2 million in the previous year, and the net income was $5.8 million versus $14.8 million in the first half of 2014.
 
Wallstrom continued, "We have made meaningful progress but know our turnaround will take time. We remain confident in our long-term strategic plan and believe that continuing to innovate and modernize our product offerings, prudently grow our distribution points, and elevate and target our marketing efforts will, over time, bring new customers to Vera Bradley and drive traffic and sales."
 
For the third quarter, the company expects to finish with net revenues between $120 million and $123 million, which will be a decrease from $125.2 million in the third quarter of 2014, and the company for the full year expects net revenues to be between $487 million and $495 million, also a decrease from last year’s numbers which was $509 million. 

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