Vera Bradley Reports First Public Financials
GDA Staff -- Gifts and Dec, 12/8/2010 11:05:02 AM
Fort Wayne, IN - Fashion accessories manufacturer Vera Bradley Inc. released its first quarterly report since going public on on October 21. In the third quarter of fiscal 2011, ended October 30, revenues increased 26 percent to $91.6 million. Indirect revenues increased 10 percent to $59.8 million (that's the company's wholesale sales to its network of independent retailers; some 3,300 according to IndyStar.com).
Direct revenues, from sales to consumers through the company's own stores and online, increased 74 percent to $31.8 million, including an increase of 32.5 percent in comparable-store sales. Operating loss was $0.2 million, including a one-time charge of $15.7 million relating to the company's IPO. Excluding that charge, operating income increased 17 percent to $15.5 million. Gross profit rose 30 percent to $51.7 million.
Mike Ray, Vera Bradley's CEO, said in a statement, "Looking ahead, we remain focused on executing our growth strategies, which include expanding our product offerings and growing in underpenetrated markets in our Indirect and Direct channels."
During the quarter, the company opened five new stores, bringing the total to 34 full-price stores and four outlet stores.
The company opened one additional full-price store after the end of the quarter, the last it anticipates opening in fiscal 2011. According to the Fort Wayne Journal Gazette, plans call for the company to open 14 to 20 new retail stores each year.
I feel so sorry for all of the small independent retailers that have supported this company for so many years. It will be difficult for them to compete with the company-owned Vera Bradley stores that are already open and those that will be opening soon.
Independent Retailer in Dallas - 2010-12-15 11:16:39 EST
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