Did You Understand Everything About Vera Bradley, Inc. (NASDAQ: VRA)’s 2Q?


Vera Bradley, Inc. (NASDAQ: VRA) handily beat consensus expectations in F2Q2017. However, the quarter showed that driving sales remains a challenge for the company and shareholders should brace for some rough ride ahead.

Many retailers are already crying foul over tough retail environment and Vera Bradley, Inc. (NASDAQ: VRA) is no exception. CEO Robert Wallstrom talked about a challenging business environment, but still offered hope that long-term growth has not totally eluded Vera Bradley.

Copping with the pressures

To cope with the prevailing market pressures and position itself for growth when things improve, Vera Bradley has embarked on widening its range of products. It is a kind of product diversification that the company hopes will help it to spread risks.

Aware that its efforts to reinvigorate sales bear fruit overnight, Vera Bradley is trying to be conservative in modeling its future performance.

F3Q outlook

For the current quarter (F3Q2017), Vera Bradley, Inc. (NASDAQ: VRA) sees revenue coming in the band of $128 to $133 million while EPS is expected in the range of $0.22 to $0.24. However, analysts are expecting revenue of at least $130 million and EPS of $0.27. While Vera Bradley’s topline guidance is within the projection of Wall Street, EPS guidance is narrower.

F2017 outlook

As for fiscal 2017, Vera Bradley expects revenue in the range of $510 to $515 million and EPS in the band of $0.88 to $0.92. However, those projections are not only a step-down from the previously guided figures, but are also a bit below consensus expectations.

Vera Bradley, Inc. (NASDAQ: VRA) initially guided for F2017 revenue of $510 to $520 million and EPS of $0.90 to $0.98. Analysts are expecting EPS of $0.93 on revenue of at least $513 for the quarter.

What transpired in F2Q for Vera Bradley, Inc. (NASDAQ: VRA)?

For its F2Q2017, Vera Bradley, Inc. (NASDAQ: VRA) posted EPS of $0.14, easily topping the consensus estimate of $0.13. Revenue of $119.2 million pulled back from $120.7 million in the same period last year, but still outpaced the consensus estimate of $118.7 million.


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