Vera Bradley, Inc. (NASDAQ:VRA) Q3 2020 Earnings Conference Call - Final Transcript

Dec 11, 2019 • 09:30 am ET

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Vera Bradley, Inc. (NASDAQ:VRA) Q3 2020 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good morning, ladies and gentlemen. Thank you for standing by. Welcome to the Vera Bradley Third Quarter Earnings Conference Call. [Operator Instructions] Following the presentation, we will conduct a question-and-answer session. Instructions will be provided at that time for you to queue up for questions. [Operator Instructions]

I would now like to turn the call over to Mark Dely, Vera Bradley's Chief Administrative Officer. Please go ahead.

Executive
Mark Dely

Good morning and welcome everyone. We'd like to thank you for joining us for Vera Bradley's quarterly earnings call. Some of the statements made on today's call are prepared remarks, and in response to your questions may constitute forward-looking statements made pursuant to and within the meaning of the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995 as amended.

Such forward-looking statements are subject to both known and unknown risks and uncertainties that could cause actual results to differ materially from those that we expect. Please refer to today's press release and the Company's most recent Form 10-K, filed with the SEC for a discussion of known risks and uncertainties. Investors should not assume that the statements made during the call will remain operative at a later time. We undertake no obligation to update any information discussed on the call.

I'll now turn the call over to Vera Bradley's CEO, Rob Wallstrom. Rob?

Executive
Robert Wallstrom

Thank you, Mark. Good morning, everyone and thank you for joining us on today's call. John Enwright, our CFO, also joins me today.

Both of our brand, Vera Bradley and Pura Vida had a strong third quarter performance. Vera Bradley's comparable sales, full-price selling and customer count, once again rose in the quarter, and Pura Vida sales were at the high end of our expectations. As a result, our consolidated non-GAAP diluted EPS of $0.20 was at the top of our guidance range and nearly 70% higher than last year's third quarter EPS of $0.12.

The addition of Pura Vida business to the Vera Bradley, Inc. portfolio has strengthened our positon as a unique lifestyle company. We are sharing resources and expertise as we grow the brands together. Pura Vida is a great strategic fit for Vera Bradley with their expertise in social media and other digital marketing strategies, and Pura Vida has already begun to leverage Vera Bradley's infrastructure, partnerships, and back office support to bolster its growth.

As previously discussed, in fiscal 2019, the first stage of Vision 20/20 was to restore our brand and Company health. We have continued to build upon that progress in fiscal 2020. During the first nine months of this year, we once again, improved the quality of our sales in our Vera Bradley full-line stores and on verabradley.com by increasing comparable full-price selling in these two channels by approximately 7%. And this is on top of the nearly 20% increase in the first nine months of last year.

As we complete year two of our three-year journey, we remain steadfastly focused on growing our customer base, sales, and profitability.