Shares of Vera Bradley ( NASDAQ: VRA ) fell 9.2% to $4.04 in Wednesday morning trading, after the handbag and luggage maker reported Q2 results that missed estimates and slashed its fiscal 2023 guidance.
VRA earlier today posted Q2 non-GAAP EPS of $0.08 which missed estimates by $0.04 . Its revenue fell 11.3% Y/Y to $130.4M, which also missed expectations by $2.11M .
VRA CEO Rob Wallstrom said the quarterly revenue was modestly below expectations and that the company continued to experience gross margin pressure due to logistics costs.
The company's quarterly revenue performance was hurt by low demand and sales for its Pura Vida brand.
"We expect it to take time to return Pura Vida’s ecommerce business to growth as rebuilding and transforming the marketing program is underway," Wallstrom said in the earnings report .
Vera ( VRA ) also decided to cut its fiscal 2023 guidance, as it expects the challenging macroeconomic environment to continue for the rest of the year and anticipates continued pressure on its gross margin due to inflationary pressures.
The company said it now expects consolidated net revenue of $480M-$490M for fiscal 2023, compared to a prior forecast of $490M-$505M. The consensus revenue estimate is $497.56M.
VRA expects fiscal 2023 non-GAAP EPS of $0.20-$0.28 from a previously provided range of $0.35-$0.50. The consensus EPS estimate is $0.41.
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Vera Bradley stock slips ~9% on Q2 earnings miss, slashed fiscal 2023 guidance