Vera Bradley (VRA) reported earnings Wed 7 Dec 2016 (b/o)

** charts before earnings **

 

** charts after earnings **

Vera Bradley misses by $0.02, misses on revs; guides Q4 EPS below consensus, revs below consensus; separately, co announced it has entered into three additional licensing agreements:

• Reports Q3 (Oct) earnings of $0.20 per share, excluding including a $0.04 per share income tax benefit related to the release of certain income tax reserves, $0.02 worse than the Capital IQ Consensus of $0.22; revenues were unchanged from the year-ago period at $126.7 mln
  • Co said, "The third fiscal quarter was an important one for our co with the launch of Vera Bradley's new brand positioning, supported by our comprehensive marketing initiatives and the opening of our new SoHo flagship store. We are pleased with improved consumer engagement driven by these initiatives.  However, the overall retail environment remains challenging. Third quarter diluted EPS was modestly below our guidance range, primarily due to continued weakness in the specialty channel and incremental promotional activity in our factory stores. In addition, verabradley.com sales were below expectations, primarily due to reduced levels of retirement product."
• Company ended quarter with strong cash position (including short-term investments) of $83.0 million, no debt, and year-over-year inventories down 19.0% 
• Co issues downside guidance for Q4, sees EPS of $0.23-0.25 vs. $0.47 Capital IQ Consensus Estimate; sees Q4 revs of $135-140 mln vs. $158.78 mln Capital IQ Consensus Estimate

In a separate press release, the co announced it has entered into three additional licensing agreements in the areas of home, hosiery, and swim. The Company previously announced licensing arrangements for stationery and publishing. The co has entered into partnerships with:

• Peking Handicraft Inc. for decorative bedding, area rugs, and kitchen textiles with distribution beginning in Fall 2017;
• Renfro Corporation for hosiery, tights, boot liners, and slipper socks with distribution beginning in Fall 2017; and
• Mainstream Swimsuits, Inc. for swimwear and cover-ups with distribution beginning in Spring 2017