American handbag designer Vera Bradley's Q1 FY22 revenues rise 57%

14 Jun '21

2 min read

Pic: Shutterstock

Vera Bradley, a US-based leading designer of women’s handbags, fashion and home accessories, posted 57.5 per cent revenues growth to $109.1 million in its first quarter (Q1) of FY22 ended on May 1, 2021, compared to $69.3 million in the corresponding quarter of previous fiscal. The company’s net loss reduced to $1.5 million (Q1 FY21: $15.5 million).

“We outperformed our revenue and earnings expectations in the first quarter,” Rob Wallstrom, chief executive officer at Vera Bradley, said in a press release. “Consumer confidence, traffic, and spending grew as vaccines became more widely available; government stimulus funds were distributed; and customers began returning to work, social events, and travel. We expanded our consolidated gross margin rate and prudently managed our expenses.”

Gross profit for Q1 FY22 was $59.1 million ($34.2 million), while selling, general and administrative expenses were $60.9 million ($59.8 million). The company’s operating loss for the three-month period reduced to $1.9 million ($25.5 million).

During Q1, Vera Bradley Direct segment’s revenue increased 81.2 per cent to $66.7 million ($36.8 million), whereas Vera Bradley indirect segment’s revenue surged 35.9 per cent to $15.3 million ($11.2 million). Pura Vida segment’s revenue were up 27.7 per cent to $27.1 million ($21.2 million).

“Our strong cash position, debt-free balance sheet, and ability to generate free cash flow will allow us to continue to invest in both our Vera Bradley and Pura Vida brands and seek out appropriate acquisitions of other comfortable, affordable, purpose-driven, digitally-native brands, similar to our successful Pura Vida acquisition, over time. We will also continue to expand our reach by adding adjacent product categories and geographies,” Wallstrom concluded.

Fibre2Fashion News Desk (JL)

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