Stock of Vera Bradley, Inc. (VRA) soared after announcing Q2 fiscal 2021 results. The stock was enjoying a gain of about 16% in early trading today.
Rob Wallstorm, CEO of VRA appreciated the significantly beating results for second quarter. In the face of COVID-19, the numbers not only surpassed the expectations but also left the last year performance behind. The swift responses of our team with focus on improvements and having firm grip on the operations have been highlighted by strong results and help the company emerged as a strong unit. Qualities like collaboration, effectiveness and strong strategies of the organization resulted in such positive results, he added.
Company’s total revenue growth was 10% up year-over-year, supported by inclusion of Pura Vida for a whole quarter. Vera Bradley e-commerce business also made its sales doubled to add into those revenues. Customers’ response to new products launched at Vera Bradley and Pura Vida and marketing strategies also drove the sales higher. Sales of cotton masks also added significantly to those revenues.
VRA ended the quarter with strengthened balance sheet, Wallstrom added. During the quarter, company also paid down 50% of its credit facility. Vera Bradley has a credit facility of $60 million and amount it paid off was $30 million. Even after such payments, company’s liquid assets were totaling $77.1 million at close of the reported quarter. This also highlights company’s ability of generating free cash flows, WallStrom said.
Consolidated net revenue, including that of Pura Vida, remained $131.8 million for the fiscal quarter ended August 1. That highlights an increase of 10% from net from of $119.8 million in the same quarter last year. Company’s consolidated net income in the second quarter remained $7.2 million or 42 cents per diluted share.
The stock price was up more than 25% at the publication.