Vera Bradley, Inc. (NASDAQ:VRA) Q3 2020 Earnings Conference Call - Final Transcript
Dec 11, 2019 • 09:30 am ET
And as a reminder, our three key areas of focus for fiscal 2020 are; number one, growth. Our plan is to return to positive comparable sales growth this year and through the first nine months, Vera Bradley's comparable sales were up 3.8% in line with our expectations. Even in the face of a challenging North American handbag market, our improvement is being driven by exciting, innovative product and supported by data-driven marketing and a relentless focus on customer engagement and consumer experience. Customer count is up double digits year-over-year and the acquisition of Pura Vida is adding to our growth as well.
Number two, operational excellence. Mid-year, we began a two-year process of re-platforming our ERP or Enterprise Resource Planning and other key information systems to become more streamlined, nimble, and efficient in our technology and business processes. We have also successfully focused on mitigating the impact of increased tariffs.
And number three, ownership. We are reinforcing our unique culture as an ownership-based model, where every associate can drive significant value creation through both individual and team efforts.
Let me shift to Thanksgiving and the Black Friday weekend. Overall, with the shortened time frame between Thanksgiving and Christmas, most retailers began their promotional activity earlier this year, spreading the spending over more days. We also began our promotional activity earlier at Vera Bradley and our customer responded to this modestly increased level of targeted promotions. Pura Vida exceeded their expectations over the same period.
We have two very important weeks of selling to go before Christmas and at both Vera Bradley and Pura Vida, our inventories, promotional calendar, service levels and website, have us well positioned for the important days ahead.
Now I will turn the call over to John to review the financial results and outlook. John?
Thanks, Rob and good morning. Financial results have been consolidated to include Pura Vida beginning July 17, 2019, the first full day following the acquisition. Prior-period numbers have not been restated. The current year non-GAAP third quarter and year-to-date income statement numbers exclude the Pura Vida acquisition-related charges, including inventory step-up amortization, intangible asset amortization, transaction costs and accretion of the earn-out liability, as well as information technology re-platforming charges, which were outlined in today's release.
Third quarter consolidated net revenues totaled $127.5 million at the higher end of our $122 million to $129 million guidance range. Excluding Pura Vida, Vera Bradley net revenues totaled $102.5 million, a 4.9% increase over $97.7 million in the prior-year third quarter. Excluding charges, consolidated third quarter Vera Bradley Incorporated net income totaled $6.9 million or $0.20 per diluted share. This included $0.07 attributable to Pura Vida. As Rob noted, our third quarter results were at the high end of our guidance of $0.16 to $0.20. Last year, we posted net income of $4.2 million or $0.12 per diluted share for the quarter.
Current year third quarter Vera Bradley Direct segment revenues totaled $78.4 million, a 6.7% increase over $73.5 million in the prior-year third quarter.