Vera Bradley Reports Q2 Improvements
(IIB Photo/Alex Brown)
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As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe NowFort Wayne-based luggage, handbag, and accessory design company Vera Bradley Inc. (Nasdaq: VRA) is reporting second quarter net income of $9.1 million, compared to $7.2 million during the same period a year ago. Chief Executive Officer Rob Wallstrom says the company is “essentially back” to its pre-pandemic levels in terms of revenue.
“With our strong first quarter performance, Fiscal 2022 is off to a solid start, with year-to-date earnings well ahead of last year and even ahead of where we were in Fiscal 2020, pre-pandemic,” said Wallstrom. “We realize we will continue to face certain headwinds and uncertainties for the balance of the year, but also know that both of our lifestyle brands have significant long-term growth opportunities ahead.”
Wallstrom says with stores fully open, customers responded to product innovation and with purchases of travel-related products.
However, Wallstrom says the company has faced two challenges, including supply chain disruptions and “significantly increased freight and tariff expenses. “
Another barrier is technology, associated with a smartphone upgrade.
“The Apple iOS 14.5 update negatively affected Pura Vida revenues, primarily due to the impact it had on the effectiveness of Facebook and Instagram advertising,” said Hallstrom. “The Facebook and Instagram platforms have been our primary marketing vehicles to drive sales.”
Click here to view the full earnings report.