For the third quarter, Vera Bradley, Inc. reported consolidated net revenues of 124.8 million dollars compared to 127.5 million dollars in the prior year third quarter, while consolidated net income totalled 8.9 million dollars or 26 cents per diluted share and on a non-GAAP basis, net income totalled 10.2 million dollars or 30 cents per diluted share. For the prior year third quarter, Vera Bradley’s consolidated net income totalled 0.1 million dollars.
Commenting on the third quarter results, the company’s Chief Executive Officer, Rob Wallstrom noted in a statement: “We expanded our gross margin rate primarily through sales of cotton masks and controlled promotional activity, and we diligently managed our expenses, achieving meaningful expense leverage.”
Highlights of Vera Bradley’s third quarter performance
The company said, third quarter Vera Bradley Direct segment revenues were 78.2 million dollars compared to 78.4 million dollars in the prior year third quarter. E-commerce sales growth of 48.8 percent offset the 19.1 percent decline in comparable store sales for the quarter, as store traffic continues to be negatively impacted by the pandemic. The company closed 10 full-line stores and opened six factory outlet stores in the last twelve months.
The company’s indirect segment revenues totalled 22.3 million dollars compared to 24.1 million dollars in the prior year third quarter, while Pura Vida segment revenues reached 24.3 million dollars compared to 25 million dollars in the prior year third quarter. A 17.2 percent growth in e-commerce sales offset a decline in sales to wholesale accounts, which were negatively affected by the pandemic.
Third quarter consolidated gross profit totalled 73.8 million dollars or 59.1 percent of net revenues compared to 67.9 million dollars or 53.2 percent in the prior year, while on a non-GAAP basis, gross profit totalled 74.1 million dollars or 58.1 percent of net revenues in the prior year third quarter. The company’s consolidated operating income totalled 12.2 million dollars or 9.7 percent of net revenues, compared to an operating loss of 1.5 million dollars or 1.2 percent of net revenues, in the prior year third quarter. On a non-GAAP basis, Vera Bradley said, current year consolidated operating income totalled 14.4 million dollars or 11.6 percent.
Review of Vera Bradley’s nine-month results
The company added that consolidated net revenues totalled 325.9 million dollars for the nine months ended October 31, 2020 including 78.4 million dollars of net revenues from Pura Vida compared to 338.3 million dollars of revenues in the prior year nine-month period. Excluding Pura Vida, Vera Bradley net revenues totalled 247.5 million dollars compared to 307.9 million dollars in the prior year nine-month period. The company’s consolidated net income totalled 0.8 million dollars or 2 cents per diluted share, while on a non-GAAP basis, consolidated net income totalled 10.9 million dollars or 32 cents per diluted share compared to 3.6 million dollars or 10 cents per diluted share.
Vera Bradley Direct segment revenues were 196.2 million dollars compared to 243.9 million dollars in the prior year due to the temporary store closures for approximately half of the first and second quarters, partially offset by a 59 percent increase in e-commerce sales during the nine-month period. Vera Bradley Indirect segment revenues reached 51.3 million dollars compared to 64 million dollars in the prior year, reflecting a reduction in orders primarily related to the pandemic and in the number of specialty and department store accounts. Pura Vida segment revenues totalled 78.4 million dollars compared to 30.4 million dollars in the prior year, which represented a partial period from the date of acquisition.
Consolidated gross profit for the nine months totalled 187.6 million dollars or 57.6 percent of net revenues compared to 185.7 million dollars or 54.9 percent of net revenues, in the prior year. On a non-GAAP basis, gross profit was 189 million dollars or 58 percent of net revenues, compared to last year’s non-GAAP gross profit of 192.9 million dollars or 57 percent of net revenues. The company’s consolidated operating income totalled 4.1 million dollars or 1.3 percent of net revenues, compared to 2.2 million dollars or 0.7 percent of net revenues, in the prior year nine-month period. On a non-GAAP basis, consolidated operating income was 19.4 million dollars or 5.9 percent of net revenues.