Vera Bradley Q4 Profit Down, Yet Beats Estimates; Sees Q1, FY15 EPS Below View

(RTTNews) - Vera Bradley, Inc. (VRA) Wednesday reported a decline in fourth-quarter profit, reflecting lower revenues and inventory write-down. Earnings per share, as well as revenues beat analysts' expectations. The women's accessory retailer also forecast first quarter and fiscal 2015 earnings below estimates.

Robert Wallstrom, chief executive officer of the company said, "Even though our fourth quarter revenues and earnings were below last year's levels, the performance exceeded our previous guidance. We continue to face external headwinds and certain challenges within the business, and fiscal 2015 will be a year of transition for Vera Bradley."

For the fourth quarter ended February 1, 2014, the company's net income declined to $19.45 million or $0.48 per share from $25.13 million or $0.62 per share in the previous year.

The latest-quarter results included inventory write-down of $0.07 per share.

On average, 10 analysts polled by Thomson Reuters expected the company to earn $0.46 per share for the quarter. Analysts' estimates typically exclude special items.

Quarterly net revenues dropped to $157.52 million from $162.56 million in the prior-year quarter, but came above analysts' estimate of $146.86 million.

The fourth quarter ended February 1, 2014 represented 13-week period, while the prior year fourth quarter ended February 2, 2013 represented 14-week period.

The 53rd week of fiscal 2013 contributed $4.9 million of net revenues and about $0.02 of earnings per share to both the fourth quarter and fiscal 2013.

Looking ahead to the first quarter, the company expects earnings per share to be in the range of $0.11 to $0.13. Net revenues are expected to be in the range of $116 million to $120 million.

Analysts expect the company to report earnings of $0.22 per share, on revenues of $123.08 million for the first-quarter.

For fiscal 2015, the company expects earnings to be in the range of $1.20 to $1.30 per share, and net revenues to be between $545 million and $565 million.

Currently Street is looking for fiscal 2015 earnings of $1.50 per share on annual revenues of $544.90 million. VRA is currently trading at $27.45, up 4.57 percent.