Earnings call transcript Q1 2024

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Operator

Please standby. Good morning ladies and gentlemen. Thank you for standing by. Welcome to the Vera Bradley First Quarter Conference Call for Fiscal 2024. At this time, all participants are in a listen-only mode.

will question-and-answer we presentation, the conduct session. a Following that you to will be up for at provided Instructions queue time for questions.

today’s to over As would Please go Bradley’s reminder, conference being Officer. is a recorded. Chief now Administrative like Mark turn to call ahead. the Dely, Vera call I

Mark Dely

you morning Good thank welcome for us We'd everyone. joining and today’s to like for call.

remain the press Act today’s risks not most Litigation from cause materially statements obligation unknown actual meaning both CEO, uncertainties. XXXX, risks during Reform subject and constitute XX-K of differ filed discussed in to to We I call release response those update and the recent call known undertake Ardrey. of turn questions may Form forward-looking Some over forward-looking that of Bradley’s as amended. made that Securities and known could within Safe the operative results of to are Jackie we no company’s the made remarks to would the the Such and the and expect. a should and of with Jackie? information today’s to call. will Vera Harbor discussion provisions our on that time. uncertainties prepared statements statements any refer Investors to during for statements a at made pursuant like Private your to now the SEC the assume to later Please

Jacqueline Ardrey

newly us today's by John CFO both Thank Schwindle, and departing you, and joined appointed I'm Mark. call. Enwright, Today, for CFO. morning you our on Good thank our joining Michael

And of many CFO retail roles, than is to with to for Xth. in welcome express who results through profit him Michael including our my XX industry and contributions delivering Vera of the by we experience, more company the his want Bradley I nine providing team a thanks joined on sincere years Schwindle He begin, future. his in solutions. to to best years we all company improvement our and we wish XX to and veteran the John service years May strong over innovative Before

prior CFO Previously to specialty as and at at and and served he Farm, retailers accessory held Perry key Claire's. he Friend jewelry other Shoe Fleet years joining roles and our three Depot roles financial retailer CFO David, well Source, as the For company, Musician's Limited Brands. Home as for Payless

hear You'll both later John from in call. and Michael today's

the to turn quarter. me let Now

the in gross to expansion We performance line are for control very expense bottom that diligent pleased first and year-over-year significant margin meaningful quarter. improvement led a

experienced for side, the Vera in quarter. of factory business. weaker several On positive than to and Bradley that the expected stores revenue March other offset partially performance however our by was challenging April highlights in This traffic areas trends led

Pura revenue positive primarily non-comparable performance delivered quarterly driven our First, five quarters first store retail by we Vida, at in sales.

We trends Vida also channels. saw wholesale in both our Pura improved year-over-year sales ecommerce and

in declined a Second, ecommerce line last Vera to account we year's place that order revenues. full Bradley solid business Vera expected remains Vera and quarter, delivered due underlying key performance revenues healthy. Bradley indirect non-recurring strong the took first but Bradley as store

Vera Vida's order taking working expect programs We gross cost and traffic designed margin, size. expanding team long-term channel revenues targeted will generating trends are and is the reverse mindset control, factory collaborative strong successfully ensuring building growth. tested hard financial discipline of long-term profitable to revenue which through average the and a proactive team steps The Pura with to Bradley's and increases, and we expansion in to strategic the marketing drive of steadily grow drive

improving is former to results. Manager, comprehensive place and and of with heightened growth organizational and Sujay day-to-day business customer focus and return marketing a promoted Finance data the platform, newly retention. solid was through have newly leading program, discipline execution At on Pura on team driving Pura team the Vida, Shah in Vida's diversification navigation, leading General of the launched we structure with Sujay business the utilization VP site ecommerce of to focusing the customer

restoration our expect. corporate product, each an are focused bracelet always and On key and custom we to pillars the of lay reductions restoration for are to program we continue began structure product and brand, first consumer, incremental of pursue profile of on which front, The Crumbl new our focus further the for support friendship announced the positions favorites. hard as and Cookies expense the big additional to company. a term project and in Harper foundation elimination overall project Sanrio, XX plan growth changes like cost the made right profitable including To success, size high on brand, that collaborations and approximately four packs will quarter, part we work is of and business working are channel long the Charms drive the the corporate fan

course, driving operational track Schwindel's Of growth as and company project will instrumental passion executes retail restoration. his Michael for of along the profitable with be record excellence

expense made our most top to XXXX We areas organizational $XX faster approximately and that and of and execution, These marketing, the restoration. flattened improve changes the several development expected annualized project fiscal streamlined organizational of pillars of decisions, are in organizational structure reductions. make cost product also design, changes ecommerce, produce support provide non-payroll recent to reductions product four savings on million the and for

brand bit on initiatives casual key a the you pillars consumer project fashion both will some who XX-year-old underway. on function. XX relevancy, Bradley and and detail to women give value At restorations of more and targeting the currently four have Vera for feminine we focus me restoring Let we

feminine a our fashionable strategically and unique market For connects consumers a level. brand we the as position distinctive brand, emotional will on that with deep

items core campus. will and innovating our and like are we categories within on product, For travel at we back best refocus and expanding core products by to

updated through and more elevate relevant We keeping it design. will our print trend feminine heritage, colorful but distinctive

customers. innovate item adjacent also will make for lifestyle our sense into We strategic that introductions

accessories focus forward go the travel channels will As strongly assortment. travel in category part perform and quarter our all be of first the of and across a travel to continue this, key

trending our well solids fabrics big channels younger well. our household with but a with be to for always remains for coordinating customer being a a signature, Additionally, core us. higher key be are all as opportunity us Patterns income, performance this continue across will a opportunity

expand our will our We back a including foray goods. collection this of solid collection leather fall, small into

an are collaborations important our expression. Finally, product brand of part still

capsule Pooh huge was Our success. Winnie the a

was online football time will season. month will build collection a footprint then factory from our be strengthen first And with that focus launched August, and or in and Kitty Our partners. Hello accelerate collaboration differentiates full more in balanced relationships for finally stores, and just we this clearly aligned first just channel, NFL launched for presence, our wholesale digital and line target strategically

reducing part successful driving sales. As this, of recent rate conversion have changes our and in bounce rebranding been and site and navigation

for Vida, consumer those Pura to sharpen our to year focus XX turning be. girl carefree older So who the younger will aspire both on the XX and we old to

faces. For marketing we will re-center our ethos authentically, and brand, fullest to moments, the brand places with real life on sharing living the

adventure, base month Our create Live launched and engagement our this for and summer. freedom, customer will Free will in friendship, accentuate travel, and entire excitement the campaign

accessible that as unique, adjacent affordable as delivering we dominant For well on are designs playful jewelry will strategic and fun, focus categories. other a bracelets emphasis with product, and on

growth existing which both new I wholesale our are collection, this of by a finally of examples are then Harper Charms strong with model. And and we our existing our summer collection great our accounts ecommerce talked for will about larger and strategic focus partnerships just on which expanding store resonating refining larger, channel, more restoring Some pursuing and have and customers. growth,

Now turn the review to me results. the John John. to let call over financial

John Enwright

good morning. Thanks, Jackie and

a for the The non-GAAP release. first discuss Let me exclude today numbers I all charges and quarter. will outlined go in are highlights over the today's few

$X.XX well items For million non-GAAP from non-GAAP the a of The please in a excluded diluted net due X.X% XX.X prior Comparable channel year factory XX.X million release. Jackie compared the sales to X to totaled direct earlier. press share consolidated GAAP totaled noted as million million today's weakness prior Consolidated first loss share detail to X.X primarily compared numbers, million, year. complete X.X%, million declined in to XX.X or from to totaled the last $X.XX a per in reference year. revenues Bradley Vera quarter. or reconciliation as diluted the decrease net XX.X of revenues segment per numbers

that from year. was year reflected store X.X% Vera not indirect totaled year decrease order driven the this Bradley segment one-time XX.X revenues XX.X in million a XX million, retail a X.X% Prior repeated million year. segment by first account over key primarily million, increase XX.X prior a revenues quarter, Vida Pura large sales. non-comparable totaled last revenues

to lower compared inbound gross margin offset in rate year of year. reserved or the gross XX.X% XX.X XX.X net or the partially by current of million year-over-year outbound revenues totaled revenues promotional activity. of and prior favorably increase was First million net an impacted sell inventory expense, by previously in through freight The XX.X% margin and quarter

or primarily XX.X% of prior million sales X.X% reduction cost prior offering initiatives consolidated the revenues related X.X% year. revenues compared of variable of or company's totaled compared revenues to or million in in Current the net to in year, volumes. X.X net to The and million SG&A lower net million lower net X.X or related the XX.X prior expenses were due year reduction than expenses year. totaled XX.X% the quarter loss XX.X first expenses of revenues to

cash Quarter million with quarter was end. at end XXX.X year. compared compared the the Total on turn totaled balance sheet. of million at let's to equivalents end borrowings facility cash million quarter no first to credit Now fiscal end XX and to XXX.X XX.X million the our year-end last million XX.X at quarter inventory

authorization XXX,XXX $XXX,XXX. purchased in the share an $XX price million quarter, shares of aggregate XXXX. the $XX $X.XX an per expires for million amount that approximately During at repurchase average remains December we of under

talk the XXXX Now over to fiscal call company's turn outlook. the let Michael to about me

Michael Schwindle

on the fiscal our for our are Based Thanks, macro environment and John this first John everyone. both initiatives as we and trends morning well underway as and Jackie discussed year. and performance, quarter the have good as revising guidance expectations,

updated result, looking guidance forward of all of a XXXX follows. our all as is our a guidance or reminder, looking forward is guidance as a our basis. As on Fiscal non-GAAP rather,

of revenues to total $XXX expect We million million. $XXX

Pura on reminder Vida Vera approximately revenues to and both and revenues year-over-year be a totaled flat As expect XXXX, basis. a Bradley million fiscal in we XXX

We rates which year. for XX.X% also compares to between gross of and XX.X%, last XX.X% margin expect

year-over-year XXXX which be lower favorably initiatives, an Our expected through sell rate inventory, of promotional in reduction to impacted margin be by reserved will gross fiscal partially offset by freight expenses, increase previously cost activity. is the and

partially initiatives between decline year. The to to being million of and by accelerate expense last anticipated XX incentive diluted to million EPS more results XX%. diluted are incremental to by XX effective XXX expected company-wide cost year-over-year outstanding intended compared Our SG&A reduction This and is million weighted to year expected XXX.X based last income SG&A customer marketing rate consolidated XX.X levels expenses million tax offset be compared XX.X normalized an million XXX in restoring to investment compensation file operating and in on shares of $X.XX growth. of $X.XX average to of and million million approximately driven

$X.XX Our year. diluted last totaled EPS

usage net and result to spending to approximately as as between logistics million as $XX million year, Vera is in a flow Bradley technology cash expect also with $X.X fiscal $X compared $XX last be XXXX. We million associated capital million million free investments And factory a XX.X and which anticipated compared of stores, cash new enhancements. of reflects our to well

open So we'd the questions. call up like to with to that operator,

Operator

[Operator Instructions]. question first comes from today Capital. Joe with Noble And our Gomes

Joe Gomes

Good morning for my taking questions. thanks and

Michael Schwindle

Joe. Hey

Jacqueline Ardrey

Joe. morning Good

John Enwright

Good morning.

Joe Gomes

talked Vera or March start in think what to to as Bradley, that? you give off, you wanted a Maybe I I could and was at more about color traffic us behind some levels So little April. detail lower

Jacqueline Ardrey

Sure, Joe.

really traffic limited first I primarily the they and channel were factory to that in to March. the want So, say challenges were

the for and drive some I traffic had think rest year continue stores. some to some increase test quarter successful more of And the at in we're programs. similar where we've retailers marketing what results going part programs factory really other we those some markets. those to those that's done to to seeing going is of reinvestment report deploy targeted look help to that are programs we And the slowdowns of to as from in really make we're the

just was channel. factory -- it to again, really So the but limited

Our, the line strong traffic full throughout quarter. was

John Enwright

it saw little. that, was It's to to it did and and all but And the Joe, in March, rebound and say we've is April, quarter so. on seen I in of add in to Jackie rebound continued still kind progression, would a job, the think a saw down really that then point of April toughest that the was we I kind we in month than better good May March

Joe Gomes

don't I not, so size that get give we idea maybe little this to non-recurring was, just or year-over-year a maybe if order better last And, about Okay. before of bit you what the can can performance? a talked account know, year of kind as that X you us

John Enwright

about the account been last key X%, so excluding one-time year Yeah, would've sale for down indirect order. that

it So over $X little bit was million. a

Joe Gomes

Okay, great. the And team. if pass then congrats Michael, on it I'll more may and I joining one along,

short-term a You've of laying what been be maybe you kind your would little there you. your are as kind month, early first of goals give over impressions Thank days, now a here? what out initial us and

Michael Schwindle

and days days have Hey, is great foundation which tremendous a build with question. from customer Jackie Oh of great me this heard hey, recognition got so that brand solid gives say, thank a here, as the you, brand. a others base, to great foundation Joe. my tremendous experience Appreciate and It's upon.

brand. I channels I'm about to so around very the different as business learn as the the Jackie excited talked Pura of a a that, Vida about Obviously there's well here and that. initially lot And with lot -- all I've

got understand been And so, good making the as in to lot I'm engaged I'm that the making as business. and as trying learning sure delivering digest a you bit pretty all Jackie imagine, meantime, initiatives vertical we've good visibility that and under have the those referred gathering initiatives a the on of of already to I've understanding to well areas additional In we of cost the that. of around different sure as controls earlier, that curve deeply might

operations experiences of of I little lot start business. running different of and a had been one operational the have XX years, other I've and that solid the and over it of jump retail to the the at bit into different organizations. my think to advantages things kind a me for kind around I areas in a makes lots onset faster different for look foundation of then have opportunities of

Joe Gomes

for for Thanks look working into the Great. you future. that. taking to going questions with Thanks I the forward again.

Michael Schwindle

Thank well. you. I do as

Jacqueline Ardrey

Thanks, Joe.

John Enwright

Thanks Joe.

Operator

Instructions]. question our next come with SCC [Operator Research. And Beder Eric will from

Eric Beder

Good quarter. morning. on the Congratulations

John Enwright

Thanks, Eric.

Jacqueline Ardrey

Thanks Eric.

Eric Beder

change have mix you've term near it's know little new the How should Okay. expense done a we you job in the join, be side. bit what product management and Obviously in this great I tough -- that a the team you flows. to on really controlling can control

we'll or Now is see of year to half that when be that the really that is envision year? Jackie we should into this be, next like what team thinking back stores you or fully

Jacqueline Ardrey

customer our it's Yeah, relates I target. getting and said, question, has that's working, and working team But dissecting as great a it quickly. especially trajectory of tough future a what's what's product great as really to done you Eric the think to job not a change and in

-- learned solids prints terms the the I we and and we about and at level. have talked just one in our they level point that balance a we So who attract offer, of price looking a that of assortment of today is in currently things customer fabrics the

get you'll definitely increase of we next then mix product some steadily it as and middle year. back at So year the see of to changes half closer the the will

Eric Beder

we openings longer and obviously should opening I closing this helped, that be about How what term? thinking mean, Okay, been stores, sense. Pura year full thinking that should historically Vida I the be price store makes guess we stores, year outlets, last about happened

Jacqueline Ardrey

deep our we restoration the project that's channel in and I another brands. for to part work that of Eric, say it's Yeah, pillar that both are of have great question,

pretty are it plan it business. to can now Pura strategic stores Vida deliver well we is really Our that sure about so right but -- working for pausing be the right the

the that, So plans stores. the store now both for end we're that's think our decisions haven't But and important right opening by you'll the that that continued of health about really Pura we the us for making stores. we're But, from strategic openings making only of reason on just Vida again, the more overall hear brands. I focusing sure right year for it's portfolio the

Eric Beder

be there for QX, flows what we significantly, you. to Sure. about should of continue that you, and brought down And terms obviously you inventory opportunities last the Thank rest the inventories how, of thinking question year? in is throughout the

Michael Schwindle

Hey, Eric jump more some and this color. Jackie is in Michael, I'll add on can that

It's something a see some year-over-year overall ish, end than to bit XX seen end with the have more to year the time we of a end noted, the basis. in of by or through to the get continue reductions the down XX flat on of do in our downward ish you year. As little good percent the the a inventory We maybe trajectory roughly expect the pretty year. probably we

Jacqueline Ardrey

little And color on tail our seen. Michael the really evidence continued in declines around kind year the within It's I those of reduction. really the that the to unproductive exercise company the the that's that We're you've contributing you'll of project mentioned that called has -- SKU rest reductions. work of think has And of contributed cutting just the and continuing a been that, SOAR an of and as see some to inventory. of really been engaged we've some off

Eric Beder

Great. the you. the Good luck for of year. rest Thank

John Enwright

Thanks, Eric.

Michael Schwindle

Thank you Eric.

Operator

turn the does Thank session to the and back conclude conference remarks. Ardrey closing Jackie you. I'll over question-and-answer That for

Jacqueline Ardrey

brands and can income which to a and margin, double gross expenses, stabilizing strong to deliver nearly double through focusing than controlling long-term. will we shareholders line over closing, In more minimum expanding believe value our operating the EPS. at and This by year year-over-year restoration, on sales, we of flow you. healthy bottom our to project we're returning believe generating top Thank I cash committed both and growth

have future exciting we progress and We forward on our for second to call quarter August on with look today you joining ahead. an XXth. sharing you us Thank our

Operator

conference. does thank That today's do Have your an conclude We excellent participation. you. Thank you day. for

Vera Bradley (VRA) 7 Jun 232024 Q1 Earnings call transcript