Why Vera Bradley (VRA) Shares Are Falling Today - Vera Bradley (NASDAQ:VRA)

Vera Bradley Inc VRA reported a second-quarter FY23 sales decline of 11.3% year-on-year to $130.37 million, missing the consensus of $132.51 million.
Adjusted EPS was $0.08 versus $0.28 last year.
The gross margin contracted 820 basis points Y/Y to 46.4%.
The operating loss for the quarter was $(42.8) million versus an operating profit of $12.6 million a year ago.
The company held $38.3 million in cash and equivalents as of July 30, 2022. Cash used in operating activities for six months totaled $(27.1) million.
VRA noted that inflationary pressures, especially higher gas prices, continued to negatively affect the purchases of customers with lower household incomes and traffic and spending in its factory stores.
"We are planning for the macro environment to remain challenging for the balance of the year and into next year," said CEO Rob Wallstrom.
VRA expects cost reductions to help offset inflationary expense pressures and recessionary spending behavior.
Outlook: Vera Bradley sees FY23 sales of $480 million - $490 million (previous outlook $490 million - $505 million) against the Street view of $497.56 million.
The company expects FY23 EPS of $0.20 - $0.28 (previous guidance of $0.35 – $0.50).
Price Action: VRA shares are trading lower by 7.87% at $4.10 on the last check Wednesday.

Vera Bradley Shares Fall On Q2 Revenue Miss, FY23 Outlook Cut