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Vera Bradley Announces Fiscal 2012 First Quarter Financial Results

/ Source: GlobeNewswire

FORT WAYNE, Ind., June 1, 2011 (GLOBE NEWSWIRE) -- Vera Bradley, Inc. (Nasdaq:VRA) today announced its financial results for the fiscal 2012 first quarter ended April 30, 2011.

First Quarter Highlights

  • Net revenues increased 19% to $101.4 million, with Indirect net revenues increasing 6% and Direct net revenues rising 43%, including an increase of 22.1% in comparable-store sales.
  • Operating income grew 10% to $19.1 million, or 18.8% of net revenues, compared to $17.3 million, or 20.4% of net revenues, in the first quarter of fiscal 2011.
  • On a GAAP basis, diluted EPS was $0.28 for the quarter, compared to $0.47 for the same quarter of fiscal 2011. Adjusted for income taxes and an increase in the number of common shares outstanding, diluted EPS was $0.25 for the first quarter of fiscal 2011.

"Fiscal 2012 is off to a solid start as we continue to experience strong sales momentum across all of our channels and execute key components of our business plan," said Michael C. Ray, Vera Bradley's Chief Executive Officer. "Our performance reflects significant demand for Vera Bradley as we expand our product offerings and increase our presence in underpenetrated markets. In addition, we have some exciting new initiatives underway, including the introduction of our brand in Japan and our initial entry into the department store channel. Our success is a tribute to our brand, our talented team, and our retail partners, and we remain very optimistic about the long-term prospects for our company."

First Quarter Results

Vera Bradley reported net revenues of $101.4 million for the first quarter, compared to $85.0 million in the same period of the prior year, an increase of $16.4 million, or 19%. By segment, Indirect net revenues increased 6% to $57.3 million, and Direct net revenues increased 43% to $44.1 million, with comparable-store sales increasing 22.1%. For the first quarter, gross profit rose 16% to $56.4 million, and gross margin was 55.7%, compared to 57.4% in the first quarter of fiscal 2011.

Operating income increased 10% to $19.1 million, or 18.8% of net revenues, in the first quarter, compared to operating income of $17.3 million, or 20.4% of net revenues, in the first quarter of fiscal 2011.

On a GAAP basis, net income for the quarter was $11.2 million, or $0.28 per diluted share, compared to $16.8 million, or $0.47 per diluted share, in the comparable prior-year period. After adjusting the first quarter of fiscal 2011 for income taxes (at an assumed rate of 40%) and an increase in the number of common shares outstanding, net income for the first quarter of fiscal 2012 increased 10% to $11.2 million, or $0.28 per diluted share, from $10.2 million, or $0.25 per diluted share, in the same period a year ago.

Outlook

For the second quarter of fiscal 2012, the Company expects net revenues in the range of $95 million to $98 million and diluted earnings per share in the range of $0.27 to $0.29, based on diluted weighted-average shares outstanding of 40.5 million.

For fiscal 2012, the Company now expects net revenues in the range of $430 million to $435 million and diluted earnings per share in the range of $1.27 to $1.30, based on diluted weighted-average shares outstanding of 40.6 million.

Call Information

A conference call to discuss fiscal 2012 first quarter results and the Company's outlook for the remainder of fiscal 2012 is scheduled for today, June 1, 2011, at 4:30 PM Eastern Time. A broadcast of the call will be available on the Company's website, www.verabradley.com. In addition, a replay of the call will be available shortly after the conclusion of the call and remain available until June 15, 2011. To access the telephone replay, listeners should dial (877) 870-5176. The access code for the replay is 6133650.

About Vera Bradley, Inc.

Friends Barbara Bradley Baekgaard and Patricia R. Miller founded Vera Bradley in 1982. Today, Vera Bradley is sold through 3,300 specialty stores as well as 45 Vera Bradley stores nationwide. Vera Bradley handbags, accessories, and paper & gift and travel items have recently been spotted on Desperate Housewives, Brothers and Sisters, Entourage, and Modern Family, and in over 20 feature-length films. Visit www.verabradley.com for a store near you or to learn more.

Forward-Looking Statements

Certain statements in this release are "forward-looking statements" made pursuant to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements reflect the Company's current expectations or beliefs concerning future events and are subject to various risks and uncertainties that may cause actual results to differ materially from those that we expected, including: possible adverse changes in general economic conditions and their impact on consumer confidence and spending; possible inability to predict and respond in a timely manner to changes in consumer demand; possible loss of key management or design associates or inability to attract and retain the talent required for our business; possible inability to maintain and enhance our brand; possible inability to successfully implement our growth strategies or manage our growing business; possible inability to successfully open new stores as planned; and possible inability to sustain levels of comparable-store sales. For a discussion of these and other risks and uncertainties that could cause actual results to differ materially from those contained in our forward-looking statements, please refer to "Risk Factors" in Part I, Item 1A of our Annual Report on Form 10-K for the fiscal year ended January 29, 2011. We undertake no obligation to publicly update or revise any forward-looking statement. Financial schedules are attached to this release.

CONTACT: Investor Relations: ICR, Inc. Joseph Teklits Jean Fontana Jean.fontana@icrinc.com 203-682-8200 Public Relations: 877-708-VERA (8372) Mediacontact@verabradley.com