Vera Bradley, Inc. (VRA) swung to a net loss for the quarter ended Apr. 29, 2017. The company has made a net loss of $4.05 million, or $ 0.11 a share in the quarter, against a net profit of $2.42 million, or $0.06 a share in the last year period. On an adjusted basis, net loss for the quarter stood at $3.21 million, or $0.09 a share compared with a net profit of $2.42 million, or $0.06 a share in the last year period. Revenue during the quarter dropped 8.60 percent to $96.14 million from $105.18 million in the previous year period. Gross margin for the quarter contracted 190 basis points over the previous year period to 54.82 percent. Operating margin for the quarter stood at negative 5 percent as compared to a positive 3.67 percent for the previous year period.
Operating loss for the quarter was $4.80 million, compared with an operating income of $3.86 million in the previous year period.
However, the adjusted operating loss for the quarter stood at $3.48 million compared to operating profit of $3.86 million in prior year period.
Robert Wallstrom, chief executive officer, noted, "Challenges in the retail environment continued into the first quarter, although April sales trends did improve over those in February and March. Total revenues were in line with our expectations while our gross profit percentage was slightly below our guidance. Our first quarter net loss per share of $0.09 (excluding severance charges) was better than guidance, primarily due to expense management, the timing of certain expenses, and a lower-than-expected tax rate."
For fiscal year 2018, Vera Bradley, Inc. Bradley forecasts revenue to be in the range of $460 million to $480 million. The company expects diluted earnings per share to be in the range of $0.40 to $0.50.
For the second-quarter 2018, Vera Bradley, Inc. Bradley forecasts revenue to be in the range of $111 million to $115 million. The company expects diluted earnings per share to be in the range of $0.09 to $0.11.
Operating cash flow remains negative
Vera Bradley, Inc. has spent $9.94 million cash to meet operating activities during the quarter as against cash outgo of $4 million in the last year period.
The company has spent $0.34 million cash to meet investing activities during the quarter as against cash outgo of $35.59 million in the last year period.
The company has spent $1.70 million cash to carry out financing activities during the quarter as against cash outgo of $6.28 million in the last year period.
Cash and cash equivalents stood at $74.40 million as on Apr. 29, 2017, up 43.59 percent or $22.59 million from $51.81 million on Apr. 30, 2016.
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