Vera Bradley FY20 revenues jump 19% to $495 mn

20 Mar '20

2 min read

Pic: Vera Bradley

Vera Bradley, a leading designer of women’s handbags, fashion and home accessories, posted 19 per cent jump in its net revenues to $495.2 million in FY20 ended on February 1, 2020 compared to $416.2 million prior year. Gross profit in the year rose to $271.8 million (FY19: $238.5 million). Net income in FY20 totalled $16.0 million (FY19: $20.7 million).

“In fiscal 2019, the first stage of Vision 20/20 was to restore brand and company health. We reduced clearance revenues and restored full-price selling, delivered SG&A and cost of sales reductions, maximised retention of the company’s customer base, and generated cash from operations,” Rob Wallstrom, chief executive officer of Vera Bradley, said in a press release.

Selling, general, and administrative expenses (SG&A) in FY20 were $253.4 million (or 51.2 per cent of net revenues) compared to $211.9 million prior year. Operating income fell to $19.4 million (FY18: $27.1 million) over the year.

Vera Bradley Direct segment revenues increased 5.9 per cent to $347.5 million from $328.0 million prior year. Pura Vida segment revenues totalled $65.9 million for the partial year, as reported.

“Fiscal 2021 promises to be an exciting but challenging year as we complete our three-year journey,” Wallstrom said. “Our goal is to build upon the progress of the last two years, focusing on robust growth and sustainable health.”

“However, the uncertainties in the global environment, particularly surrounding Coronavirus (Covid-19) and its potential supply chain and revenue implications, make our fiscal 2021 financial performance difficult to predict,” Wallstrom said.

For fiscal 2021, the company’s expects: consolidated net revenues of $555 to $585 million, which includes estimated Pura Vida revenues of $125 to $135 million; consolidated gross profit percentage of 56.7-56.9 per cent compared to 56.6 per cent in fiscal 2020; and consolidated SG&A expense of $269 to $280 million compared to $242.4 million in fiscal 2020, reflecting the inclusion of $52 to $56 million of Pura Vida expenses for the full year.

Fibre2Fashion News Desk (JL)

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