Vera Bradley Falls on Q1 Results, Guidance Cut; CEO to Retire

Retailer

released its fiscal first-quarter earnings results after the closing bell on Wednesday. The company also cut its fiscal 2014 earnings and revenue guidance and announced the retirement of CEO Michael Ray. In late trade, Vera Bradley shares were last down around 8 percent to $20.63. For Q1, the company reported net income of $9.2 million or $0.23 per share, versus $12.6 million or $0.31 per share, in the year ago period. This came in ahead of Wall Street earnings per share estimates of $0.21. Sales in the quarter were up 5 percent to $123.0 million from $117.2 million last year. This also beat came in ahead of Wall Street sales expectations of $121.01 million. Looking forward to the second-quarter, Vera Bradley guided for EPS of $0.31 to $0.33 on revenue of $123 million to $126 million. This compares to current consensus estimates calling for EPS of $0.39 on revenue of $136.20 million in the second-quarter. For fiscal 2014, the retailer slashed its outlook. Vera Bradley now sees EPS of $1.74 to $1.78 on revenue of $570 million to $575 million. This compares to the company's previous guidance calling for EPS of $1.83 to $1.88 on revenue of $585 million to $590 million. Analysts currently expect Vera Bradley to report EPS of $1.81 on revenue of $591.12 million for the fiscal year. Chief Executive Officer Michael Ray informed the company's board that he intends to retire. Vera Bradley's board has formed a search committee to assist in the hunt for a successor. Ray is expected to remain CEO through the transition period and will continue to serve as a company director.