Statement as issued Wednesday by the company:
FORT WAYNE, Ind., March 19, 2014 (GLOBE NEWSWIRE) -- Vera Bradley, Inc. (Nasdaq:VRA) ("Vera Bradley" or the "Company") today announced its financial results for the fourth quarter and fiscal year ended February 1, 2014 ("fiscal 2014").
Net revenues totaled $157.5 million for the current year fourth quarter, compared to $162.6 million in the prior year fourth quarter ended February 2, 2013. Net income totaled $19.4 million, or $0.48 per diluted share, for the current year fourth quarter. These results included a pre-tax inventory write-down of $4.8 million, equating to approximately $3.0 million after tax, or $0.07 per share. The inventory write-down primarily related to fabrics in certain retired patterns no longer considered salable and to certain merchandise in the baby gift category, which is being discontinued by the Company. Net income totaled $25.1 million, or $0.62 per diluted share, in the prior year fourth quarter.
Net revenues totaled $536.0 million for fiscal 2014, compared to $541.1 million for the fiscal year ended February 2, 2013 ("fiscal 2013"). Net income totaled $58.8 million, or $1.45 per diluted share, for fiscal 2014, which included the aforementioned inventory write-down. Net income totaled $68.9 million, or $1.70 per share, for fiscal 2013.
The fourth quarter and fiscal year ended February 1, 2014 represented 13-week and 52-week periods, respectively. The prior year fourth quarter and fiscal year ended February 2, 2013 represented 14-week and 53-week periods, respectively. The 53rd week of fiscal 2013 contributed $4.9 million of net revenues and approximately $0.02 of earnings per diluted share to both the fourth quarter and full year of fiscal 2013.
Robert Wallstrom, Chief Executive Officer, noted, "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," Wallstrom continued. "We have spent the last few months developing our comprehensive five-year strategic plan designed to drive improved financial performance and shareholder value over the long-term. Our vision is to build on our rich heritage and establish Vera Bradley as a premium lifestyle brand that is relevant to the future, expanding our customer reach and growing our customer connections. The strategic plan is our roadmap to achieve that vision and encompasses three key elements - product, distribution channels, and marketing. We will modernize and elevate our product; evolve into a true multi-channel business as we grow our full-line store base, expand our factory outlet channel, further develop e-commerce, expand our department store presence, and stabilize our specialty/gift channel; and generate excitement for the aspirational Vera Bradley brand through our marketing efforts."
Wallstrom concluded, "Even though fiscal 2015 will be challenging and a year of enormous change, our entire team is aligned and very excited about the future of our brand."
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