Vera Bradley Misses Where it Counts

Just the facts, Fool.

Seth Jayson
Seth Jayson
Sep 4, 2012 at 12:00AM
Other

Vera Bradley (Nasdaq: 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.

Revenue details
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 details
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.

Margin details
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.

Looking ahead
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.

Investor sentiment
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.

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