Vera Bradley's Q4 Earnings Miss Expectations Hit By Supply Chain, GSP Tariff Issues

Vera Bradley Inc VRA reported fourth-quarter FY22 sales growth of 5.1% year-on-year, to $149.58 million, missing the consensus of $157.75 million.
Adjusted EPS of $0.17 missed the analyst consensus of $0.26.
The gross margin contracted 380 basis points Y/Y to 50.9%. The operating margin compressed 80 basis points to 5.5%, and operating income for the quarter declined 7.8% to $8.3 million.
The company held $88.4 million in cash and equivalents as of January 29, 2022. Cash provided by operating activities for twelve months totaled $39.9 million.
"In addition to the Apple IDFA update, we faced a series of other unprecedented macro issues – including dramatic supply chain delays and freight cost increases, the delayed renewal of GSP (generalized system of preferences) tariff relief, and substantial digital advertising cost increases – all of which materially affected profitability during the year," said CEO Rob Wallstrom.
Outlook: Vera Bradley sees FY23 sales of $555 million - $575 million, against the Street view of $583.63 million.
The company expects FY23 EPS of $0.57 - $0.67 versus the consensus of $0.74.
Price Action: VRA shares are trading higher by 3.24% at $7.01 on the last check Wednesday.

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