Vera Bradley positive after Q4 results

|About: Vera Bradley (VRA)|By:, SA News Editor

Vera Bradley (NASDAQ:VRA) reports comparable sales fell 4.6% in Q4 due to declines in store and e-commerce traffic, partially resulting from reduced promotional activity.

Direct segment revenue increased 4.9% to $112.9M.

Indirect segment revenue decreased 8.4% to $41.2M.

E-commerce sales dropped 10% Y/Y.

Gross margin rate improved 580 bps to 58.2%.

SG&A expense rate expanded 630 bps to 42.1%.

Operating margin rate -50 bps to 16.5%.

Inventory +15.4% Y/Y to $113.59M.

Q1 Guidance: Net revenues: $105M to $109M; Gross margin rate: 56.7% to 57.2%; SG&A expense rate: 53.5% to 54.8%; Tax rate: 45.7%; Diluted EPS: $0.04 to $0.06; Weighted-average shares outstanding: 37.6M; Inventory: $114M to $119M.

FY2017 Guidance: Net revenues: $510M to $525M; Gross margin rate: 57.7% to 58.1%; SG&A expense rate: 47.2% to 47.5%; Tax rate: 38.3%; Diluted EPS: $0.90 to $0.98; Weighted-average shares outstanding: 36.9M; Capex: ~$20M.

VRA +4.78% premarket.

Subscribe for full text news in your inbox