Beloved Pizza Chain Expands Texas Footprint in Richmond Suburb
LOS ANGELES, Dec. 19, 2023 (GLOBE NEWSWIRE) — FAT (Fresh. Authentic. Tasty.) Brands Inc., parent company of Round Table Pizza and 17 other restaurant concepts, announces that it has officially opened its first Round Table Pizza location in greater Houston. Located in Richmond, Texas, the new restaurant is operated by franchisee Paul Tran, an oil industry veteran and retiree, and will be a welcome addition to the West Houston suburbs.
Since its founding, Round Table Pizza has been recognized as “Pizza Royalty™” for its homemade dough, signature three-cheese blend, and gold-standard ingredients topped to the edge. Customers can enjoy the chain’s proprietary handmade pizzas, salads, baked-to-perfection Garlic Parmesan Twists, classic and boneless wings, and more.
“Establishing a presence in Houston represents a pivotal step in Round Table Pizza’s domestic growth strategy, especially as we continue building upon our presence in Texas,” says Taylor Wiederhorn, Chief Development Officer of FAT Brands. “Round Table Pizza has seen great success in the San Antonio and Dallas markets, and we believe the Richmond community will enjoy what we have to offer.”
Round Table Pizza in Richmond will be located at 8323 Farm to Market Rd 723, Richmond, TX 77406. It is open Sunday through Thursday, 11 a.m. to 9 p.m., and Fridays and Saturdays, 11 a.m. to 10 p.m. For more information on Round Table Pizza, please visit www.roundtablepizza.com.
About FAT (Fresh. Authentic. Tasty.) Brands
FAT Brands (NASDAQ: FAT) is a leading global franchising company that strategically acquires, markets, and develops fast casual, quick-service, casual dining, and polished casual dining concepts around the world. The Company currently owns 18 restaurant brands: Round Table Pizza, Fatburger, Marble Slab Creamery, Johnny Rockets, Fazoli’s, Twin Peaks, Great American Cookies, Hot Dog on a Stick, Buffalo’s Cafe & Express, Hurricane Grill & Wings, Pretzelmaker, Elevation Burger, Smokey Bones, Native Grill & Wings, Yalla Mediterranean and Ponderosa and Bonanza Steakhouses, and franchises and owns over 2,300 units worldwide. For more information on FAT Brands, please visit www.fatbrands.com.
About Round Table Pizza
Inspired by the honor, valor, and revelry of the Knights of the Round Table, Round Table Pizza’s® superior pizza and commitment to quality and authenticity have earned the reputation of “Pizza Royalty™” for over 60 years. With more than 410 restaurants across the United States, Round Table celebrates community, family, and making merry. For more information, visit www.roundtablepizza.com.
QuantaSing is a leading online service provider in China dedicated to improving people’s quality of life and well-being by providing lifelong personal learning and development opportunities. The Company is the largest service provider in China’s online adult learning market and China’s adult personal interest learning market in terms of revenue, according to a report by Frost & Sullivan based on data from 2022. By leveraging its proprietary tools and technology, QuantaSing offers easy-to-understand, affordable, and accessible online courses to adult learners under a variety of brands, including QiNiu, JiangZhen and QianChi, empowering users to pursue personal development. Leveraging its extensive experience in individual online learning services, the Company has also expanded its services to corporate clients including, among others, marketing services and enterprise talent management services.
Michael Kupinski, Director of Research, Equity Research Analyst, Digital, Media & Technology , Noble Capital Markets, Inc.
Patrick McCann, CFA, Research Analyst, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Fiscal Q1 revenue growth. The company reported fiscal 2024 Q1 revenue of RMB869.1 million, 11% better than our estimate and a 32% increase over the prior year period. Adj. EBITDA of RMB71.5 million was below our estimate of RMB90.5 million.
Other Personal Interest Courses at forefront. The impressive revenue growth was driven by the Other Personal Interest Courses category, which was up RMB292.5 million over the prior year period. Importantly, we expect the Other Personal Interest category to be the main revenue growth driver for the company over the short term.
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*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.
BOCA RATON, Fla.–(BUSINESS WIRE)–Dec. 14, 2023– The ODP Corporation (NASDAQ:ODP), a leading provider of products, services and technology solutions to businesses and consumers, today announced that it received a score of 100 on the Human Rights Campaign Foundation’s 2023-2024 Corporate Equality Index (CEI), the nation’s foremost benchmarking survey and report measuring corporate policies and practices related to LGBTQ+ workplace equality. The ODP Corporation joins the ranks of 545 major U.S. businesses that also earned top marks this year.
“The ODP Corporation is proud to be recognized as a top-scoring company 12 years in a row,” said Zoë Maloney, executive vice president and chief human resources officer for The ODP Corporation. “We are committed to fostering an inclusive workplace where our associates feel safe, respected, and valued for who they are. Embracing diverse perspectives allows us to connect more deeply with our customers and communities and unlocks the full potential of our team to innovate for continued progress.”
“For well over two decades, businesses have played an important role in furthering LGBTQ+ equality by centering employee needs and voices when it comes to workplace inclusion. While there is much more work to be done, year-over-year growth in CEI participation is evidence of a business community that recognizes the responsibility and value in upholding equity and inclusion,” said RaShawn “Shawnie” Hawkins, Human Rights Campaign senior director of workplace equality. “Our goal at the Human Rights Campaign Foundation is to work in a spirit of partnership with companies, providing educational resources and leading benchmarking, and collaborating on ways for businesses to support the LGBTQ+ community at a time when we face unprecedented legislative attacks, heightened anti-LGBTQ+ rhetoric and physical violence. The CEI is an ever-evolving tool – a blueprint that companies can use to show up more effectively in supporting their LGBTQ+ employees and their families.”
The results of the 2023-2024 CEI showcase how U.S.-based companies are promoting LGBTQ+ friendly workplace policies in the U.S. and abroad. The first year of the CEI included 319 participants, and the 2023-2024 CEI now includes 1,384 participants; further demonstrating the tremendous trajectory of the CEI, a record-breaking 1,340 businesses have non-discrimination protections specific to gender identity, up from just 17 in 2002. These critical non-discrimination protections cover 21 million employees in the U.S. and around the globe. The ODP Corporation’s efforts in satisfying all the CEI’s criteria earned a score of 100 and the designation as recipient of the Equality 100 Award: Leader in LGBTQ+ Workplace Inclusion.
The CEI rates employers providing these crucial protections to over 20 million U.S. workers and an additional 18 million outside of the U.S. Companies rated in the CEI include Fortune magazine’s 500 largest publicly traded businesses, American Lawyer magazine’s top 200 revenue-grossing law firms (AmLaw 200), and hundreds of publicly and privately held mid- to large-sized businesses.
The CEI rates companies on detailed criteria falling under four central pillars:
Non-discrimination policies across business entities;
Equitable benefits for LGBTQ+ workers and their families;
About the Human Rights Campaign Foundation The Human Rights Campaign Foundation is the educational arm of the Human Rights Campaign (HRC), America’s largest civil rights organization working to achieve equality for lesbian, gay, bisexual, transgender and queer (LGBTQ+) people. Through its programs, the HRC Foundation seeks to make transformational change in the everyday lives of LGBTQ+ people, shedding light on inequity and deepening the public’s understanding of LGBTQ+ issues, with a clear focus on advancing transgender and racial justice. Its work has transformed the landscape for more than 15 million workers, 11 million students, 1 million clients in the adoption and foster care system and so much more. The HRC Foundation provides direct consultation and technical assistance to institutions and communities, driving the advancement of inclusive policies and practices; it builds the capacity of future leaders and allies through fellowship and training programs; and, with the firm belief that we are stronger working together, it forges partnerships with advocates in the U.S. and around the globe to increase our impact and shape the future of our work.
About The ODP Corporation The ODP Corporation (NASDAQ:ODP) is a leading provider of products, services, and technology solutions through an integrated business-to-business (B2B) distribution platform and omnichannel presence, which includes world-class supply chain and distribution operations, dedicated sales professionals, a B2B digital procurement solution, online presence and a network of Office Depot and OfficeMax retail stores. Through its operating companies Office Depot, LLC; ODP Business Solutions, LLC; Veyer, LLC; and Varis, Inc., The ODP Corporation empowers every business, professional, and consumer to achieve more every day. For more information, visit theodpcorp.com.
ODP and ODP Business Solutions are trademarks of ODP Business Solutions, LLC. Office Depot is a trademark of The Office Club, LLC. OfficeMax is a trademark of OMX, Inc. Veyer is a trademark of Veyer, LLC. Varis is a trademark of Varis, Inc. Any other product or company names mentioned herein are the trademarks of their respective owners.
Office Depot, Inc., together with its subsidiaries, supplies a range of office products and services. It offers merchandise, such as general office supplies, computer supplies, business machines and related supplies, and office furniture through its chain of office supply stores under the Office Depot, Foray, Ativa, Break Escapes, Worklife, and Christopher Lowell brand names. The company also provides graphic design, printing, reproduction, mailing, shipping, and other services through design, print, and ship centers. It has operations throughout North America, Europe, Asia, and Central America. The company also sells its products and services through direct mail catalogs, contract sales force, Internet sites, and retail stores, through a mix of company-owned operations, joint ventures, licensing and franchise agreements, alliances, and other arrangements. As of December 31, 2008, Office Depot operated 1,267 North American retail division office supply stores and 162 international division retail stores, as well as participated under licensing and merchandise arrangements in 98 stores. The company was founded in 1986 and is based in Boca Raton, Florida.
Joe Gomes, Managing Director, Equity Research Analyst, Generalist , Noble Capital Markets, Inc.
Joshua Zoepfel, Research Associate, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
NobleCon19. The ODP Corporation CFO Anthony Scaglione presented at NobleCon19. Highlights included are the optimization of Office Depot, growth drivers in Varis and Veyer, and returning value to shareholders. A rebroadcast is available at https://www.channelchek.com/videos/the-odp-corporation-noblecon19-replay.
Office Depot. The Company discussed the optimization of its store footprint from a current store count of roughly 930 stores to 800-900 stores by 2025. These stores, which the optimization should reduce costs, in our view, mixed with the eCommerce website, provide ODP with strong free cash flow generation to be deployed in its faster growing segments, Varis and Veyer.
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This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.
QuantaSing is a leading online service provider in China dedicated to improving people’s quality of life and well-being by providing lifelong personal learning and development opportunities. The Company is the largest service provider in China’s online adult learning market and China’s adult personal interest learning market in terms of revenue, according to a report by Frost & Sullivan based on data from 2022. By leveraging its proprietary tools and technology, QuantaSing offers easy-to-understand, affordable, and accessible online courses to adult learners under a variety of brands, including QiNiu, JiangZhen and QianChi, empowering users to pursue personal development. Leveraging its extensive experience in individual online learning services, the Company has also expanded its services to corporate clients including, among others, marketing services and enterprise talent management services.
Michael Kupinski, Director of Research, Equity Research Analyst, Digital, Media & Technology , Noble Capital Markets, Inc.
Patrick McCann, CFA, Research Analyst, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Strong fiscal Q1 revenue growth. The company reported fiscal 2024 Q1 revenue of RMB869.1 million, 11% better than our estimate and a 32% increase over the prior year period. Adj. EBITDA of RMB71.5 million was below our estimate of RMB90.5 million. Figure #1 Fiscal Q1 Results illustrates the company’s performance in the quarter.
Other Personal Interest Courses scaling. The impressive revenue growth was driven by the Other Personal Interest Courses category, which was up RMB292.5 million over the prior year period. Importantly, we expect the Other Personal Interest category to be the main revenue growth driver for the company over the short term.
Equity Research is available at no cost to Registered users of Channelchek. Not a Member? Click ‘Join’ to join the Channelchek Community. There is no cost to register, and we never collect credit card information.
This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.
GameSquare’s SaaS solutions to enable Bungie to elevate its content and creator programs
FRISCO, TX / ACCESSWIRE / December 11, 2023 /Stream Hatchet, a GameSquare company (“GameSquare”, or the “Company”) (NASDAQ:GAME)(TSXV:GAME), proudly announces an innovative partnership with Bungie, a leading force in the game publishing world. Bungie will utilize Stream Hatchet’s advanced analytics capabilities to gain profound insights into audience engagement across live streaming and social media platforms. The partnership includes the influencer CRM capabilities of Sideqik, also a GameSquare company, to seamlessly scale and manage Bungie’s creator and affiliate programs.
Justin Kenna, CEO of GameSquare, stated: “Our collaboration with Bungie marks a significant milestone for Stream Hatchet and Sideqik as we benefit from the complementary nature of their offerings. We’re thrilled to empower Bungie with the data and insights that are needed to elevate engagement with the gaming community. We are excited to work with Bungie and support their innovative content and experiences.”
Bungie, renowned for creating iconic franchises like Destiny and Marathon, will use GameSquare’s SaaS based tools to develop a data-driven approach that will empower Bungie to fine-tune their content delivery strategies and enhance their connection with the gaming community. Furthermore, Stream Hatchet enables Bungie to strategically plan and benchmark content and title releases against competitors, ensuring each launch captures the attention of the gaming community to reach its full potential.
About GameSquare Holdings, Inc.
GameSquare is a vertically integrated, digital media, entertainment and technology company that connects global brands with gaming and youth culture audiences. GAME’s end-to-end platform includes GCN, a digital media company focused on gaming and esports audiences, Cut+Sew (Zoned), a gaming and lifestyle marketing agency, USA, Code Red Esports Ltd., a UK based esports talent agency, Complexity Gaming, a leading esports organization, Fourth Frame Studios, a creative production studio, Mission Supply, a merchandise and consumer products business, Frankly Media, programmatic advertising, Stream Hatchet, live streaming analytics, and Sideqik a social influencer marketing platform.
This news release contains “forward-looking information” and “forward-looking statements” (collectively, “forward-looking statements”) within the meaning of the applicable Canadian and United States securities legislation. All statements, other than statements of historical fact, are forward-looking statements and are based on expectations, estimates and projections as at the date of this news release. Any statement that involves discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as “expects”, or “does not expect”, “is expected”, “anticipates” or “does not anticipate”, “plans”, “budget”, “scheduled”, “forecasts”, “estimates”, “believes” or “intends” or variations of such words and phrases or stating that certain actions, events or results “may” or “could”, “would”, “might” or “will” be taken to occur or be achieved) are not statements of historical fact and may be forward-looking statements. In this news release, forward-looking statements relate, among other things, to the closing of the proposed transaction, the Company’s future performance and revenue; the Company’s ability to execute its business plan; and the proposed use of net proceeds of the transaction. These forward-looking statements are provided only to provide information currently available to us and are not intended to serve as and must not be relied on by any investor as, a guarantee, assurance or definitive statement of fact or probability. Forward-looking statements are necessarily based upon a number of estimates and assumptions which include, but are not limited to: the Company being able to grow its business and being able to execute on its business plan, the Company being able to complete and successfully integrate acquisitions, the Company being able to recognize and capitalize on opportunities and the Company continuing to attract qualified personnel to supports its development requirements. These assumptions, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to: the Company’s ability to achieve its objectives, the Company successfully executing its growth strategy, the ability of the Company to obtain future financings or complete offerings on acceptable terms, failure to leverage the Company’s portfolio across entertainment and media platforms, dependence on the Company’s key personnel and general business, economic, competitive, political and social uncertainties including impact of the COVID-19 pandemic and any variants. These risk factors are not intended to represent a complete list of the factors that could affect the Company which are discussed in the Company’s most recent MD&A. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on the forward-looking statements and information contained in this news release. GameSquare assumes no obligation to update the forward-looking statements of beliefs, opinions, projections, or other factors, should they change, except as required by law.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Corporate Contact
Lou Schwartz, President Phone: (216) 464-6400 Email: ir@gamesquare.com
Joe Gomes, Managing Director, Equity Research Analyst, Generalist , Noble Capital Markets, Inc.
Joshua Zoepfel, Research Associate, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
3QFY24. Net revenue of $114.9 million, compared to $124.0 million in 3Q23, and below our estimate of $124 million. Gross margin improved to 54.8%, up 190 basis points y-o-y. Net income of $5.1 million, or $0.16/sh ($0.19/sh adjusted) compared to net income of $5.2 million, or $0.17/sh (adjusted of $0.20). We had forecasted net income of $4.5 million, or $0.14/sh.
Segments. VB Direct segment revenues totaled $72.3 million, a 9.7% decrease y-o-y. Comparable sales declined 8.2% in the third quarter, primarily driven by weakness in the outlet channel. VB Indirect segment revenues totaled $25.0 million, a 12.0% increase y-o-y, reflecting a significant one-time key account order in 3Q24. Pura Vida revenues totaled $17.7 million, an 18.3% decrease y-o-y, reflecting a decline in sales to wholesale accounts and a decline in ecommerce sales.
Equity Research is available at no cost to Registered users of Channelchek. Not a Member? Click ‘Join’ to join the Channelchek Community. There is no cost to register, and we never collect credit card information.
This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.
Xcel Brands, Inc. 1333 Broadway 10th Floor New York, NY 10018 United States https:/Sector(s): Consumer Cyclical Industry: Apparel Manufacturing Full Time Employees: 84 Key Executives Name Title Pay Exercised Year Born Mr. Robert W. D’Loren Chairman, Pres & CEO 1.27M N/A 1958 Mr. James F. Haran CFO, Principal Financial & Accou
Michael Kupinski, Director of Research, Equity Research Analyst, Digital, Media & Technology , Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Noblecon19. On December 5th, management presented at Noblecon19 at Florida Atlantic University (FAU) in Boca Raton, Florida, to the investment community. The presentation conducted by Mr. Robert D’Loren highlighted the company’s transition to a high margin, licensing model, its recent announcement with super model Christy Brinkley, and the upcoming launch of its social commerce app. We believe that the company is well on its way for a transition toward revenue and cash flow growth.
Strategic partnership. The company announced its newly formed joint venture with Christie Brinkley to develop TWRHLL, a lifestyle and apparel brand that will utilize retail and live streaming distribution channels. Christie Brinkley will serve as the face and voice of TWRHLL, which is expected to launch in the spring of 2024.
Equity Research is available at no cost to Registered users of Channelchek. Not a Member? Click ‘Join’ to join the Channelchek Community. There is no cost to register, and we never collect credit card information.
This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.
LAKE ZURICH, Ill.–(BUSINESS WIRE)– ACCO Brands Corporation (NYSE: ACCO) today announced that Beth Simermeyer has been elected to the Board of Directors, effective December 5, 2023.
“We are excited to welcome Beth, a dynamic business leader with a proven track record of success to ACCO Brands’ Board of Directors. Beth’s extensive marketing expertise, P&L ownership and global leadership mindset, will further enhance our Board and help us execute on our strategic transformation. We look forward to leveraging Beth’s insights to continue to further strengthen the company going forward,” said Boris Elisman, Executive Chairman of ACCO Brands Corporation.
Ms. Simermeyer brings substantial business leadership experience in marketing, transformation, innovation, growth acceleration, acquisitions and top and bottom-line delivery in the consumer goods, industrial and healthcare sectors. In her most recent role as Global Group President, Executive Vice President, Healthcare and Life Sciences at Ecolab (NYSE: ECL) she launched and led the global Life Sciences business that has become a top investment priority for the company. During her more than thirty-year career, Ms. Simermeyer held several senior brand and general management roles, including Ecolab’s Chief Marketing Officer, where her responsibilities spanned sustainability, customer insights, branding and communications. Prior to joining Ecolab, Ms. Simermeyer was Senior Vice President, North America at S.C. Johnson. She started her career at The Procter & Gamble Company (NYSE: PG). Since 2019, she has served as an Independent Director at the Securian Financial Group.
About ACCO Brands
ACCO Brands, the Home of Great Brands Built by Great People, designs, manufactures and markets consumer and end-user products that help people work, learn, play and thrive. Our widely recognized brands include AT-A-GLANCE®, Five Star®, Kensington®, Leitz®, Mead®, PowerA®, Swingline®, Tilibra® and many others. More information about ACCO Brands Corporation (NYSE: ACCO) can be found at www.accobrands.com.
Christopher McGinnis Investor Relations (847) 796-4320
Kori Reed Media Relations (224) 501-0406
Source:
December 7, 2023
LAKE ZURICH, Ill.–(BUSINESS WIRE)– ACCO Brands Corporation (NYSE: ACCO) today announced that Beth Simermeyer has been elected to the Board of Directors, effective December 5, 2023.
“We are excited to welcome Beth, a dynamic business leader with a proven track record of success to ACCO Brands’ Board of Directors. Beth’s extensive marketing expertise, P&L ownership and global leadership mindset, will further enhance our Board and help us execute on our strategic transformation. We look forward to leveraging Beth’s insights to continue to further strengthen the company going forward,” said Boris Elisman, Executive Chairman of ACCO Brands Corporation.
Ms. Simermeyer brings substantial business leadership experience in marketing, transformation, innovation, growth acceleration, acquisitions and top and bottom-line delivery in the consumer goods, industrial and healthcare sectors. In her most recent role as Global Group President, Executive Vice President, Healthcare and Life Sciences at Ecolab (NYSE: ECL) she launched and led the global Life Sciences business that has become a top investment priority for the company. During her more than thirty-year career, Ms. Simermeyer held several senior brand and general management roles, including Ecolab’s Chief Marketing Officer, where her responsibilities spanned sustainability, customer insights, branding and communications. Prior to joining Ecolab, Ms. Simermeyer was Senior Vice President, North America at S.C. Johnson. She started her career at The Procter & Gamble Company (NYSE: PG). Since 2019, she has served as an Independent Director at the Securian Financial Group.
About ACCO Brands
ACCO Brands, the Home of Great Brands Built by Great People, designs, manufactures and markets consumer and end-user products that help people work, learn, play and thrive. Our widely recognized brands include AT-A-GLANCE®, Five Star®, Kensington®, Leitz®, Mead®, PowerA®, Swingline®, Tilibra® and many others. More information about ACCO Brands Corporation (NYSE: ACCO) can be found at www.accobrands.com.
Christopher McGinnis Investor Relations (847) 796-4320
Net income totaled $5.1 million, or $0.16 per diluted share; non-GAAP net income totaled $6.1 million, or $0.19 per diluted share
Balance sheet strengthens, with cash and cash equivalents of $52.3 million, no debt, and year-over-year inventories down 27.6%
FORT WAYNE, Ind., Dec. 06, 2023 (GLOBE NEWSWIRE) — Vera Bradley, Inc. (Nasdaq: VRA) today announced its financial results for the third quarter and nine months ended October 28, 2023.
In this release, Vera Bradley, Inc. or “the Company” refers to the entire enterprise and includes both the Vera Bradley and Pura Vida brands. Vera Bradley on a stand-alone basis refers to the Vera Bradley brand.
Third Quarter Comments
Jackie Ardrey, Chief Executive Officer of the Company, stated, “Our efforts continue on Project Restoration, and we are very pleased with our progress to date as our associates across the Company work together to position Vera Bradley, Inc. for long-term, profitable growth. Year-over-year third quarter non-GAAP income was essentially flat, as we delivered solid gross margin expansion and carefully managed our expenses, despite sales challenges.”
“Total third quarter revenues for the Vera Bradley brand decreased 5.0% from last year,” Ardrey noted. “Vera Bradley Direct revenue declines primarily resulted from continued weakness in the outlet store channel and the impact of store closures. Year-over-year Vera Bradley Indirect revenues were up as compared to last year.
“Pura Vida year-over-year sales decreased 18.3%, with declines in both wholesale and ecommerce revenues, as prior year sales were driven by meaningfully higher levels of marketing spend, along with increased liquidation and clearance activity. Store sales remained strong. With our diligent expense management and focus on profitability, Pura Vida year-over-year third quarter operating income improved.
“At both brands, customers have responded to our latest iconic product collaborations and to our new, innovative, and on-trend product offerings, even as they have been more careful and thoughtful with their discretionary spending in the current macro environment.”
Ardrey continued, “We continue to diligently manage our debt-free balance sheet, adding to our year-over-year cash position while strategically lowering our inventory levels. Strength in this area is important in navigating an uncertain retail environment as well as in supporting our Project Restoration initiatives.
“Presently, we are taking targeted and prudent actions to stabilize revenues, and we remain focused on strong financial discipline and controlling what we can control as we react both strategically and tactically to current market conditions. Simultaneously, we have made meaningful progress on our long-term strategic plan, Project Restoration, focusing on four key pillars of the business for each brand – Consumer, Brand, Product, and Channel. We believe execution of Project Restoration will drive long-term profitable growth and deliver value to our shareholders.”
Summary of Financial Performance for the Third Quarter
Consolidated net revenues totaled $115.0 million compared to $124.0 million in the prior year third quarter ended October 29, 2022.
For the current year third quarter, Vera Bradley, Inc.’s consolidated net income totaled $5.1 million, or $0.16 per diluted share. These results included $1.0 million of net after tax charges, comprised of $0.6 million for the amortization of definite-lived intangible assets, $0.2 million of severance charges, and $0.2 million of consulting fees primarily associated with strategic initiatives. On a non-GAAP basis, Vera Bradley, Inc.’s consolidated third quarter net income totaled $6.1 million, or $0.19 per diluted share.
For the prior year third quarter, Vera Bradley, Inc.’s consolidated net income totaled $5.2 million, or $0.17 per diluted share. These results included $1.1 million of net after tax charges, comprised of $0.6 million of consulting and professional fees primarily associated with cost savings initiatives and the CEO search, $0.4 million for the amortization of definite-lived intangible assets, and $0.3 million of severance and stock-based retirement compensation charges, partially offset by a benefit of $0.2 million for the reversal of certain purchase order cancellation fees. On a non-GAAP basis, Vera Bradley, Inc.’s consolidated third quarter net income totaled $6.3 million, or $0.20 per diluted share.
Summary of Financial Performance for the Nine Months
Consolidated net revenues totaled $337.5 million for the current year nine months ended October 28, 2023, compared to $352.9 million in the prior year nine-month period ended October 29, 2022.
For the current year nine months, Vera Bradley, Inc.’s consolidated net income totaled $9.7 million, or $0.31 per diluted share. These results included $4.0 million of net after tax charges, comprised of $1.8 million of severance charges, $1.7 million for the amortization of definite-lived intangible assets, and $0.5 million of consulting and professional fees primarily associated with strategic initiatives. On a non-GAAP basis, Vera Bradley, Inc.’s consolidated net income for the nine months totaled $13.7 million, or $0.44 per diluted share.
For the prior year nine months, Vera Bradley, Inc.’s consolidated net loss totaled ($31.6) million, or ($1.00) per diluted share. These results included $34.2 million of net after tax charges, comprised of $18.2 million of Pura Vida goodwill and intangible asset impairment charges, $5.0 million of severance and stock-based retirement compensation retirement charges and other employee costs, $4.7 million of inventory adjustments associated with the exit of certain technology products and the write-off of excess mask inventory, $3.0 million of consulting and professional fees primarily associated with cost savings initiatives and the CEO search, $1.3 million of intangible asset amortization, $1.0 million of store and right-of-use asset impairment charges, $0.7 million of purchase order cancellation fees for spring 2023 goods, and $0.3 million of goodMRKT exit costs. On a non-GAAP basis, Vera Bradley, Inc.’s consolidated net income for the nine months totaled $2.6 million, or $0.08 per diluted share.
Non-GAAP Numbers
The current year non-GAAP third quarter and nine-month income statement numbers referenced below exclude the previously outlined severance charges, intangible asset amortization, and consulting and professional fees. The prior year non-GAAP third quarter income statement numbers referenced below exclude the previously outlined consulting and professional fees, amortization of definite-lived intangible assets, severance and stock-based retirement compensation charges, and a benefit for the reversal of certain purchase order cancellation fees. The prior year non-GAAP income statement numbers for the nine months referenced below exclude the previously outlined goodwill and intangible asset impairment charges, severance and stock-based retirement compensation retirement charges and other employee costs, inventory adjustments and write-offs, consulting and professional fees, intangible asset amortization, store and right-of-use asset impairment charges, purchase order cancellation fees, and goodMRKT exit costs.
Third Quarter Details
Current year third quarter Vera Bradley Direct segment revenues totaled $72.3 million, a 9.7% decrease from $80.1 million in the prior year third quarter. Comparable sales declined 8.2% in the third quarter, primarily driven by weakness in the outlet channel. Total revenues were also impacted by store closures over the last twelve months, including 15 full-line and two outlet stores. The Company also opened three outlet stores over the last twelve months.
Vera Bradley Indirect segment revenues totaled $25.0 million, a 12.0% increase over $22.3 million in the prior year third quarter, reflecting a significant one-time key account order that did not take place in the prior period.
Pura Vida segment revenues totaled $17.7 million, an 18.3% decrease from $21.7 million in the prior year third quarter, reflecting a decline in sales to wholesale accounts and a decline in ecommerce sales, partially offset by growth in retail store sales.
Third quarter consolidated gross profit totaled $63.0 million, or 54.8% of net revenues, compared to $65.9 million, or 53.1% of net revenues, in the prior year. On a non-GAAP basis, prior year gross profit totaled $65.6 million, or 52.9% of net revenues. The current year gross profit rate compared to the prior year non-GAAP rate was favorably impacted by lower year-over-year inbound and outbound freight expense, lower supply chain costs, and the sell-through of previously-reserved inventory, partially offset by increased promotional activity. Prior year gross profit was materially impacted by high inbound and outbound freight expense as well as deleverage of overhead costs.
Third quarter consolidated SG&A expense totaled $56.4 million, or 49.0% of net revenues, compared to $60.1 million, or 48.4% of net revenues, in the prior year. On a non-GAAP basis, consolidated SG&A expense totaled $55.1 million, or 48.0% of net revenues for the current year third quarter, compared to $57.6 million, or 46.4% of net revenues, in the prior year. Vera Bradley’s current year non-GAAP SG&A expenses were lower than the prior year primarily due to Company-wide cost reduction initiatives across various areas of the enterprise. The expense deleverage resulted from lower revenues.
The Company’s third quarter consolidated operating income totaled $6.8 million, or 5.9% of net revenues, compared to $6.0 million, or 4.8% of net revenues, in the prior year third quarter. On a non-GAAP basis, the Company’s current year consolidated operating income totaled $8.0 million, or 7.0% of net revenues, compared to $8.2 million, or 6.6%, of net revenues, in the prior year.
By segment:
Vera Bradley Direct operating income was $15.7 million, or 21.7% of Direct net revenues, for the third quarter, compared to $17.1 million, or 21.3% of Direct net revenues, in the prior year. On a non-GAAP basis, prior year Direct operating income totaled $16.8 million, or 21.0% of Direct net revenues.
Vera Bradley Indirect operating income was $9.0 million, or 35.9% of Indirect net revenues, for the third quarter, compared to $9.0 million, or 40.4% of Indirect net revenues, in the prior year. On a non-GAAP basis, prior year Indirect operating income totaled $9.0 million, or 40.2% of Indirect net revenues.
Pura Vida’s operating loss was ($0.6) million, or (3.3%) of Pura Vida net revenues, in the current year, compared to an operating loss of ($1.4) million, or (6.2%) of Pura Vida net revenues, in the prior year. On a non-GAAP basis, Pura Vida’s operating income was $0.1 million, or 0.8% of Pura Vida net revenues, compared to an operating loss of ($0.1) million, or (0.3%) of Pura Vida net revenues, in the prior year.
Details for the Nine Months
Vera Bradley Direct segment revenues for the current year nine-month period totaled $216.9 million, a 5.2% decrease from $228.7 million in the prior year. Comparable sales declined 5.8% for the nine months.
Vera Bradley Indirect segment revenues for the nine months totaled $57.7 million, a 2.0% increase over $56.6 million in the prior year.
Pura Vida segment revenues for the nine months totaled $62.9 million, a 6.9% decrease from $67.5 million in the prior year, reflecting a decline in sales to wholesale accounts and a decline in ecommerce sales, partially offset by growth in retail store sales.
Consolidated gross profit for the nine months totaled $186.8 million, or 55.3% of net revenues, compared to $178.9 million, or 50.7% of net revenues, in the prior year. On a non-GAAP basis, prior year gross profit totaled $185.9 million, or 52.7% of net revenues. The current year gross profit rate compared to the prior year non-GAAP rate was favorably impacted by lower year-over-year inbound and outbound freight expense, lower supply chain costs, and the sell-through of previously-reserved inventory, partially offset by an increase in promotional activity.
For the nine months, consolidated SG&A expense totaled $174.3 million, or 51.6% of net revenues, compared to $195.0 million, or 55.3% of net revenues, in the prior year. On a non-GAAP basis, current year consolidated SG&A expense totaled $169.1 million, or 50.1% of net revenues, compared to $181.0 million, or 51.3% of net revenues, in the prior year. Vera Bradley’s current year non-GAAP SG&A expenses were lower than the prior year primarily due Company-wide cost reduction initiatives across various areas of the enterprise.
For the nine months, the Company’s consolidated operating income totaled $13.3 million, or 3.9% of net revenues, compared to a consolidated operating loss of ($45.1) million, or (12.8%) of net revenues, in the prior year. On a non-GAAP basis, the Company’s current year consolidated operating income was $18.5 million, or 5.5% of net revenues, compared to $5.3 million, or 1.5% of net revenues, in the prior year.
By segment:
Vera Bradley Direct operating income was $43.7 million, or 20.1% of net revenues, compared to $32.6 million, or 14.3% of Direct net revenues, in the prior year. On a non-GAAP basis, current year Direct operating income was $44.0 million, or 20.3% of Direct net revenues, compared to $38.6 million, or 16.9% of Direct net revenues, in the prior year.
Vera Bradley Indirect operating income was $19.9 million, or 34.4% of Indirect net revenues, compared to $18.4 million, or 32.5% of Indirect net revenues, in the prior year. On a non-GAAP basis, prior year Indirect operating income totaled $19.4 million, or 34.2% of Indirect net revenues.
Pura Vida’s operating income was $5.0 million, or 7.9% of Pura Vida net revenues, compared to an operating loss of ($28.8) million, or (42.7%) of Pura Vida net revenues, in the prior year. On a non-GAAP basis, Pura Vida’s operating income was $7.2 million, or 11.5% of Pura Vida net revenues, for the current year, compared to $4.3 million, or 6.4% of Pura Vida net revenues, for the prior year.
Balance Sheet
Net capital spending for the nine months ended October 28, 2023 totaled $2.5 million compared to $7.0 million in the prior year.
Cash and cash equivalents as of October 28, 2023 totaled $52.3 million compared to $25.2 million at the end of last year’s third quarter. The Company had no borrowings on its $75 million asset-based lending (“ABL”) facility at quarter end.
Total quarter-end inventory was $129.1 million, compared to $178.3 million at the end of the third quarter last year.
During the third quarter, the Company repurchased approximately $0.5 million of its common stock (71,807 shares at an average price of $6.76), bringing the total repurchased for the nine months to approximately $1.9 million (320,127 shares at an average price of $5.94). The Company has $25.8 million remaining under its $50.0 million repurchase authorization that expires in December 2024.
Forward Outlook
Management is updating certain components of guidance for the fiscal year ending February 3, 2024 (“Fiscal 2024”) based on performance for the first nine months, Company initiatives underway, and current macroeconomic trends and expectations. The Company has revised the guidance range for diluted earnings per share for the fiscal year.
Excluding net revenues, all forward-looking guidance numbers referenced below are non-GAAP. The prior year income statement numbers exclude the previously disclosed goodwill and intangible asset impairment charges, severance and stock-based retirement compensation retirement charges and other employee costs, inventory adjustments and write-offs, certain consulting and professional fees, intangible asset amortization, store and right-of-use asset impairment charges, purchase order cancellation fees, and goodMRKT exit costs. Current year guidance excludes any similar charges.
For Fiscal 2024, the Company’s updated expectations are as follows:
Consolidated net revenues of $472 to $478 million. Net revenues totaled $500.0 million in Fiscal 2023.
A consolidated gross profit percentage of 54.0% to 54.5% compared to 51.4% in Fiscal 2023. The Fiscal 2024 gross profit rate is expected to be favorably impacted by lower year-over-year freight expense, cost reduction initiatives, and the sell-through of previously-reserved inventory, partially offset by an increase in promotional activity.
Consolidated SG&A expense of $232.5 to $235.5 million compared to $245.3 million in Fiscal 2023. An expected decline in SG&A expense is being driven by Company-wide cost reduction initiatives, partially offset by restoring short-term and long-term incentive compensation to more normalized levels and incremental marketing investment intended to accelerate customer file growth.
Consolidated operating income of $23.3 to $25.9 million compared to $12.3 million in Fiscal 2023.
Free cash flow of between $40 and $43 million compared to a cash usage of $21.7 million in Fiscal 2023.
Consolidated diluted EPS of $0.56 to $0.62 based on diluted weighted-average shares outstanding of approximately 31.0 million and an effective tax rate of approximately 28%. Diluted EPS totaled $0.24 last year.
Net capital spending of approximately $4 million compared to $8.2 million in the prior year, reflecting investments associated with new Vera Bradley outlet stores and technology and logistics enhancements.
Disclosure Regarding Non-GAAP Measures
The Company’s management does not, nor does it suggest that investors should, consider the supplemental non-GAAP financial measures in isolation from, or as a substitute for, financial information prepared in accordance with accounting principles generally accepted in the United States (“GAAP”). Further, the non-GAAP measures utilized by the Company may be unique to the Company, as they may be different from non-GAAP measures used by other companies.
The Company believes that the non-GAAP measures presented in this earnings release, including free cash flow (cash usage); gross profit; selling, general, and administrative expenses; operating income (loss); net income (loss); net income (loss) attributable and available to Vera Bradley, Inc.; and diluted net income (loss) per share available to Vera Bradley, Inc. common shareholders, along with the associated percentages of net revenues, are helpful to investors because they allow for a more direct comparison of the Company’s year-over-year performance and are consistent with management’s evaluation of business performance. A reconciliation of the non-GAAP measures to the most directly comparable GAAP measures can be found in the Company’s supplemental schedules included in this earnings release.
Call Information
A conference call to discuss results for the third quarter is scheduled for today, Wednesday, December 6, 2023, at 9:30 a.m. Eastern Time. A broadcast of the call will be available via Vera Bradley’s Investor Relations section of its website, www.verabradley.com. Alternatively, interested parties may dial into the call at (888) 204-4368, and enter the access code 7089328. A replay will be available shortly after the conclusion of the call and remain available through December 20, 2023. To access the recording, listeners should dial (844) 512-2921, and enter the access code 7089328.
About Vera Bradley, Inc.
Vera Bradley, Inc. operates two unique lifestyle brands – Vera Bradley and Pura Vida. Vera Bradley and Pura Vida are complementary businesses, both with devoted, emotionally-connected, and multi-generational female customer bases; alignment as casual, comfortable, affordable, and fun brands; positioning as “gifting” and socially-connected brands; strong, entrepreneurial cultures; a keen focus on community, charity, and social consciousness; multi-channel distribution strategies; and talented leadership teams aligned and committed to the long-term success of their brands.
Vera Bradley, based in Fort Wayne, Indiana, is a leading designer of women’s handbags, luggage and other travel items, fashion and home accessories, and unique gifts. Founded in 1982 by friends Barbara Bradley Baekgaard and Patricia R. Miller, the brand is known for its innovative designs, iconic patterns, and brilliant colors that inspire and connect women unlike any other brand in the global marketplace.
In July 2019, Vera Bradley, Inc. acquired a 75% interest in Creative Genius, Inc., which also operates under the name Pura Vida Bracelets (“Pura Vida”). Pura Vida, based in La Jolla, California, is a digitally native, highly-engaging lifestyle brand founded in 2010 by friends Paul Goodman and Griffin Thall. Pura Vida has a differentiated and expanding offering of bracelets, jewelry, and other lifestyle accessories. The Company acquired the remaining 25% of Pura Vida in January 2023.
The Company has three reportable segments: Vera Bradley Direct (“VB Direct”), Vera Bradley Indirect (“VB Indirect”), and Pura Vida. The VB Direct business consists of sales of Vera Bradley products through Vera Bradley Full-Line and Factory Outlet stores in the United States, www.verabradley.com, Vera Bradley’s online outlet site, and the Vera Bradley annual outlet sale in Fort Wayne, Indiana. The VB Indirect business consists of sales of Vera Bradley products to approximately 1,600 specialty retail locations throughout the United States, as well as select department stores, national accounts, third party e-commerce sites, and third-party inventory liquidators, and royalties recognized through licensing agreements related to the Vera Bradley brand. The Pura Vida segment consists of sales of Pura Vida products through the Pura Vida websites, www.puravidabracelets.com, www.puravidabracelets.ca, and www.puravidabracelets.eu; through the distribution of its products to wholesale retailers and department stores; and through its Pura Vida retail stores.
Website Information
We routinely post important information for investors on our website www.verabradley.com in the “Investor Relations” section. We intend to use this webpage as a means of disclosing material, non-public information and for complying with our disclosure obligations under Regulation FD. Accordingly, investors should monitor the Investor Relations section of our website, in addition to following our press releases, SEC filings, public conference calls, presentations and webcasts. The information contained on, or that may be accessed through, our webpage is not incorporated by reference into, and is not a part of, this document.
Investors and other interested parties may also access the Company’s most recent Corporate Responsibility and Sustainability Report outlining its ESG (Environmental, Social, and Governance) initiatives at https://verabradley.com/pages/corporate-responsibility.
Vera Bradley Safe Harbor Statement
Certain statements in this release are “forward-looking statements” made pursuant to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements reflect the Company’s current expectations or beliefs concerning future events and are subject to various risks and uncertainties that may cause actual results to differ materially from those that we expected, including: possible adverse changes in general economic conditions and their impact on consumer confidence and spending; possible inability to predict and respond in a timely manner to changes in consumer demand; possible loss of key management or design associates or inability to attract and retain the talent required for our business; possible inability to maintain and enhance our brands; possible inability to successfully implement the Company’s long-term strategic plans; possible inability to successfully open new stores, close targeted stores, and/or operate current stores as planned; incremental tariffs or adverse changes in the cost of raw materials and labor used to manufacture our products; possible adverse effects resulting from a significant disruption in our distribution facilities; or business disruption caused by pandemics. More information on potential factors that could affect the Company’s financial results is included from time to time in the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of the Company’s public reports filed with the SEC, including the Company’s Form 10-K for the fiscal year ended January 28, 2023. We undertake no obligation to publicly update or revise any forward-looking statement. Financial schedules are attached to this release.
Liabilities, Redeemable Noncontrolling Interest, and Shareholders’ Equity
Current liabilities:
Accounts payable
$
12,297
$
20,350
$
31,125
Accrued employment costs
11,756
14,312
12,252
Short-term operating lease liabilities
18,673
19,714
19,742
Other accrued liabilities
13,671
12,723
14,771
Income taxes payable
570
558
501
Total current liabilities
56,967
67,657
78,391
Long-term operating lease liabilities
63,915
74,664
80,109
Other long-term liabilities
71
90
85
Total liabilities
120,953
142,411
158,585
Redeemable noncontrolling interest
–
10,712
23,153
Shareholders’ equity:
Additional paid-in-capital
112,397
109,718
109,070
Retained earnings
284,322
274,629
302,790
Accumulated other comprehensive loss
(74
)
(105
)
(181
)
Treasury stock
(134,764
)
(132,864
)
(132,080
)
Total shareholders’ equity of Vera Bradley, Inc.
261,881
251,378
279,599
Total liabilities, redeemable noncontrolling interest, and shareholders’ equity
$
382,834
$
404,501
$
461,337
Vera Bradley, Inc.
Condensed Consolidated Statements of Operations
(in thousands, except per share amounts)
(unaudited)
Thirteen Weeks Ended
Thirty-Nine Weeks Ended
October 28, 2023
October 29, 2022
October 28, 2023
October 29, 2022
Net revenues
$
114,987
$
124,040
$
337,521
$
352,870
Cost of sales
51,980
58,164
150,749
173,963
Gross profit
63,007
65,876
186,772
178,907
Selling, general, and administrative expenses
56,363
60,059
174,274
195,015
Impairment of goodwill and intangible assets
–
–
–
29,338
Other income, net
142
141
773
350
Operating income (loss)
6,786
5,958
13,271
(45,096
)
Interest (income) expense, net
(285
)
39
(241
)
115
Income (loss) before income taxes
7,071
5,919
13,512
(45,211
)
Income tax expense (benefit)
1,953
1,090
3,819
(6,429
)
Net income (loss)
5,118
4,829
9,693
(38,782
)
Less: Net loss attributable to redeemable noncontrolling interest
–
(338
)
–
(7,208
)
Net income (loss) attributable to Vera Bradley, Inc.
$
5,118
$
5,167
$
9,693
$
(31,574
)
Basic weighted-average shares outstanding
30,814
31,061
30,836
31,721
Diluted weighted-average shares outstanding
31,322
31,229
31,246
31,721
Basic net income (loss) per share available to Vera Bradley, Inc. common shareholders
$
0.17
$
0.17
$
0.31
$
(1.00
)
Diluted net income (loss) per share available to Vera Bradley, Inc. common shareholders
$
0.16
$
0.17
$
0.31
$
(1.00
)
Vera Bradley, Inc.
Condensed Consolidated Statements of Cash Flows
(in thousands)
(unaudited)
Thirty-Nine Weeks Ended
October 28, 2023
October 29, 2022
Cash flows from operating activities
Net income (loss)
$
9,693
$
(38,782)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation of property, plant, and equipment
5,988
6,685
Amortization of operating right-of-use assets
15,622
16,151
Goodwill and intangible asset impairment
–
29,338
Other impairment charges
–
1,351
Amortization of intangible assets
2,187
2,305
Provision for doubtful accounts
87
(80)
Stock-based compensation
2,365
2,593
Deferred income taxes
3,155
(5,524)
Other non-cash loss, net
50
–
Changes in assets and liabilities:
Accounts receivable
(3,581)
(4,354)
Inventories
13,135
(33,453)
Prepaid expenses and other assets
(688)
2,764
Accounts payable
(8,134)
49
Income taxes
(53)
5,772
Operating lease liabilities, net
(16,495)
(19,262)
Accrued and other liabilities
(2,273)
(2,311)
Net cash provided by (used in) operating activities
21,058
(36,758)
Cash flows from investing activities
Purchases of property, plant, and equipment
(2,546)
(6,968)
Cash paid for business acquisition
(10,000)
–
Net cash used in investing activities
(12,546)
(6,968)
Cash flows from financing activities
Tax withholdings for equity compensation
(972)
(1,430)
Repurchase of common stock
(1,900)
(17,278)
Distributions to redeemable noncontrolling interest
–
(613)
Net cash used in financing activities
(2,872)
(19,321)
Effect of exchange rate changes on cash and cash equivalents
31
(152)
Net increase (decrease) in cash and cash equivalents
$
5,671
$
(63,199)
Cash and cash equivalents, beginning of period
46,595
88,436
Cash and cash equivalents, end of period
$
52,266
$
25,237
Vera Bradley, Inc.
Third Quarter Fiscal 2024
GAAP to Non-GAAP Reconciliation Thirteen Weeks Ended October 28, 2023
(in thousands, except per share amounts)
(unaudited)
Thirteen Weeks Ended
As Reported
Other Items
Non-GAAP (Excluding Items)
Gross profit
$
63,007
$
–
$
63,007
Selling, general, and administrative expenses
56,363
1,216
1
55,147
Operating income (loss)
6,786
(1,216
)
8,002
Income (loss) before income taxes
7,071
(1,216
)
8,287
Income tax expense (benefit)
1,953
(234
)
2
2,187
Net income (loss)
5,118
(982
)
6,100
Less: Net loss attributable to redeemable noncontrolling interest
–
–
–
Net income (loss) attributable to Vera Bradley, Inc.
5,118
(982
)
6,100
Diluted net income (loss) per share available to Vera Bradley, Inc. common shareholders
$
0.16
$
(0.03
)
$
0.19
Vera Bradley Direct segment operating income
$
15,708
$
–
$
15,708
Vera Bradley Indirect segment operating income
$
8,967
$
–
$
8,967
Pura Vida segment operating (loss) income
$
(580
)
$
(729
)
3
$
149
Unallocated corporate expenses
$
(17,309
)
$
(487
)
4
$
(16,822
)
1Items include $729 for the amortization of definite-lived intangible assets; $304 for severance charges; and $183 for certain professional fees and consulting fees associated with strategic initiatives
2Related to the tax impact of the items mentioned above
3Related to $729 for the amortization of definite-lived intangible assets
4Related to $304 for severance charges; and $183 for certain professional fees and consulting fees associated with strategic initiatives
Vera Bradley, Inc.
Third Quarter Fiscal 2023
GAAP to Non-GAAP Reconciliation Thirteen Weeks Ended October 29, 2022
(in thousands, except per share amounts)
(unaudited)
Thirteen Weeks Ended
As Reported
Other Items
Non-GAAP (Excluding Items)
Gross profit
$
65,876
$
276
1
$
65,600
Selling, general, and administrative expenses
60,059
2,470
2
57,589
Impairment of goodwill and intangible assets
–
–
–
Operating income (loss)
5,958
(2,194
)
8,152
Income (loss) before income taxes
5,919
(2,194
)
8,113
Income tax expense (benefit)
1,090
(763
)
3
1,853
Net income (loss)
4,829
(1,431
)
6,260
Less: Net loss attributable to redeemable noncontrolling interest
(338
)
(322
)
(16
)
Net income (loss) attributable to Vera Bradley, Inc.
5,167
(1,109
)
6,276
Diluted net income (loss) per share available to Vera Bradley, Inc. common shareholders
$
0.17
$
(0.04
)
$
0.20
Vera Bradley Direct segment operating income
$
17,060
$
225
4
$
16,835
Vera Bradley Indirect segment operating income
$
9,012
$
51
4
$
8,961
Pura Vida segment operating loss
$
(1,353
)
$
(1,289
)
5
$
(64
)
Unallocated corporate expenses
$
(18,761
)
$
(1,181
)
6
$
(17,580
)
1Related to the reversal of certain PO cancellation fees
2Items include $1,133 for consulting fees associated with cost savings initiatives and CEO search, as well as certain Pura Vida professional fees; $768 for the amortization of definite-lived intangible assets; $406 for severance charges; and $163 for CEO stock-based compensation associated with retirement
3Related to the tax impact of the charges mentioned above
4Related to an allocation for reversals of certain PO cancellation fees
5Related to $768 for the amortization of definite-lived intangible assets; and $406 for severance charges; and $115 for certain professional fees
6Related to $1,018 for consulting fees associated with cost savings initiatives and CEO search and $163 for CEO stock-based compensation associated with retirement
Vera Bradley, Inc.
GAAP to Non-GAAP Reconciliation Thirty-Nine Weeks Ended October 28, 2023
(in thousands, except per share amounts)
(unaudited)
Thirty-Nine Weeks Ended
As Reported
Other Items
Non-GAAP (Excluding Items)
Gross profit
$
186,772
$
–
$
186,772
Selling, general, and administrative expenses
174,274
5,217
1
169,057
Operating income (loss)
13,271
(5,217
)
18,488
Income (loss) before income taxes
13,512
(5,217
)
18,729
Income tax expense (benefit)
3,819
(1,247
)
2
5,066
Net income (loss)
9,693
(3,970
)
13,663
Less: Net loss attributable to redeemable noncontrolling interest
–
–
–
Net income (loss) attributable to Vera Bradley, Inc.
9,693
(3,970
)
13,663
Diluted net income (loss) per share available to Vera Bradley, Inc. common shareholders
$
0.31
$
(0.13
)
$
0.44
Vera Bradley Direct segment operating income (loss)
$
43,669
$
(342
)
3
$
44,011
Vera Bradley Indirect segment operating income
$
19,877
$
–
$
19,877
Pura Vida segment operating income (loss)
$
4,982
$
(2,266
)
4
$
7,248
Unallocated corporate expenses
$
(55,257
)
$
(2,609
)
5
$
(52,648
)
1Items include $2,372 for severance charges; $2,187 for the amortization of definite-lived intangible assets; and $658 for certain professional fees and consulting fees associated with strategic initiatives
2Related to the tax impact of the items mentioned above
3Related to severance charges
4Related to $2,187 for the amortization of definite-lived intangible assets and $79 for severance charges
5Items include $1,951 for severance charges and $658 associated with certain professional fees and consulting fees for strategic initiatives
Vera Bradley, Inc.
GAAP to Non-GAAP Reconciliation Thirty-Nine Weeks Ended October 29, 2022
(in thousands, except per share amounts)
(unaudited)
Thirty-Nine Weeks Ended
As Reported
Other Items
Non-GAAP (Excluding Items)
Gross profit (loss)
$
178,907
$
(7,000
)
1
$
185,907
Selling, general, and administrative expenses
195,015
14,057
2
180,958
Impairment of goodwill and intangible assets
29,338
29,338
–
Operating (loss) income
(45,096
)
(50,395
)
5,299
(Loss) income before income taxes
(45,211
)
(50,395
)
5,184
Income tax (benefit) expense
(6,429
)
(7,898
)
3
1,469
Net (loss) income
(38,782
)
(42,497
)
3,715
Less: Net (loss) income attributable to redeemable noncontrolling interest
(7,208
)
(8,285
)
1,077
Net (loss) income attributable to Vera Bradley, Inc.
(31,574
)
(34,212
)
2,638
Diluted net (loss) income per share available to Vera Bradley, Inc. common shareholders
$
(1.00
)
$
(1.08
)
$
0.08
Vera Bradley Direct segment operating income (loss)
$
32,607
$
(5,948
)
4
$
38,555
Vera Bradley Indirect segment operating income (loss)
$
18,409
$
(943
)
5
$
19,352
Pura Vida segment operating (loss) income
$
(28,831
)
$
(33,143
)
6
$
4,312
Unallocated corporate expenses
$
(67,281
)
$
(10,361
)
7
$
(56,920
)
1Items include $6,142 for inventory adjustments associated with the exit of certain technology products and the goodMRKT brand, as well as excess mask products and $858 for PO cancellation fees
2Items include $6,120 for severance charges; $4,038 for consulting fees associated with cost savings initiatives, CEO search, and certain Pura Vida professional fees; $2,305 for the amortization of definite-lived intangible assets; $1,351 for store and right-of-use asset impairment charges; $163 for CEO stock-based compensation associated with retirement; and $80 for goodMRKT brand exit costs
3Related to the tax impact of the charges mentioned above, as well as goodwill and intangible asset impairment charges
4Related to $4,872 related to an allocation for certain inventory adjustments and PO cancellation fees; $759 for store impairment charges; $302 for goodMRKT brand exit costs; and $15 for severance charges
5Related to an allocation for certain inventory adjustments and PO cancellation fees
6Related to $29,338 of goodwill and intangible asset impairment charges; $2,305 for the amortization of definite-lived intangible assets; $963 for inventory adjustments associated with mask products; $422 for severance charges; and $115 for certain professional fees
7Related to $5,683 for severance charges; $3,923 for consulting fees associated with cost savings initiatives and CEO search; $592 for a right-of-use asset impairment charge; and $163 for CEO stock-based compensation associated with retirement
NEW YORK, Dec. 01, 2023 (GLOBE NEWSWIRE) — Xcel Brands, Inc. (NASDAQ: XELB) (“Xcel” or the “Company”), a media and consumer products company with significant expertise in livestream shopping and social commerce, today announced that it is scheduled to present at the following investor conferences:
Noble Capital Markets 19th Annual Emerging Growth Equity Conference Location: Boca Raton, FL Date: December 4 – 5, 2023 Presentation Time: December 5 at 3:00 pm ET Webcast: www.nobleconference.com
Robert W. D’Loren, Chairman and Chief Executive Officer of Xcel Brands, will be leading the formal presentation and answering questions from investors. Xcel Brands will also provide an overview of its growth opportunities and business transformation, including a first look at the Company’s new livestream shopping technology and social commerce platform.
About Xcel Brands
Xcel Brands, Inc. (NASDAQ: XELB) is a media and consumer products company engaged in the design, production, marketing, live streaming, and social commerce sales of branded apparel, footwear, accessories, fine jewelry, home goods and other consumer products, and the acquisition of dynamic consumer lifestyle brands. Xcel was founded in 2011 with a vision to reimagine shopping, entertainment, and social media as one thing. Xcel owns the Judith Ripka, Halston, LOGO by Lori Goldstein, and C. Wonder brands and a minority stake in the Isaac Mizrahi brand. It also owns and manages the Longaberger brand through its controlling interest in Longaberger Licensing LLC. Xcel is pioneering a true modern consumer products sales strategy which includes the promotion and sale of products under its brands through interactive television, digital live-stream shopping, social commerce, brick-and-mortar retail, and e-commerce channels to be everywhere its customers shop. The company’s brands have generated in excess of $4 billion in retail sales via livestreaming in interactive television and digital channels alone, and over 20,000 hours of live-stream and social commerce. Headquartered in New York City, Xcel Brands is led by an executive team with significant live streaming, production, merchandising, design, marketing, retailing, and licensing experience, and a proven track record of success in elevating branded consumer products companies. www.xcelbrands.com
Forward Looking Statements
This press release contains forward-looking statements. All statements other than statements of historical fact contained in this press release, including statements regarding future events, our future financial performance, business strategy and plans and objectives of management for future operations, are forward-looking statements. We have attempted to identify forward-looking statements by terminology including “anticipates,” “believes,” “can,” “continue,” “ongoing,” “could,” “estimates,” “expects,” “intends,” “may,” “appears,” “suggests,” “future,” “likely,” “goal,” “plans,” “potential,” “projects,” “predicts,” “seeks,” “should,” “would,” “guidance,” “confident” or “will” or the negative of these terms or other comparable terminology. These forward-looking statements include, but are not limited to, statements regarding our anticipated revenue, expenses, profitability, strategic plans, and capital needs. These statements are based on information available to us on the date hereof and our current expectations, estimates and projections and are not guarantees of future performance. Forward-looking statements involve known and unknown risks, uncertainties, assumptions and other factors, including, without limitation, the risks discussed in the “Risk Factors” section and elsewhere in the Company’s Annual Report on form 10-K for the year ended December 31, 2022 and its other filings with the SEC, which may cause our or our industry’s actual results, levels of activity, performance, or achievements to differ materially from those expressed or implied by these forward-looking statements. Moreover, we operate in a very competitive and rapidly changing environment. New risks emerge from time to time and it is not possible for us to predict all risk factors, nor can we address the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause our actual results to differ materially from those contained in any forward-looking statements. You should not place undue reliance on any forward-looking statements. Except as expressly required by the federal securities laws, we undertake no obligation to update any forward-looking statements, whether as a result of new information, future events, changed circumstances, or any other reason.
For further information please contact: Andrew Berger SM Berger & Company, Inc. 216-464-6400 andrew@smberger.com
Pending home sales in the U.S. unexpectedly plunged in October to their lowest levels since record-keeping began over two decades ago, even below readings seen during the housing crisis in 2008.
The National Association of Realtors (NAR) reported Thursday that its index of pending sales contracts signed on existing homes retreated 1.5% from September. On an annual basis, signings were a staggering 8.5% lower than the same month last year.
October’s reading marks a continuation of the housing market’s steep slide over the past year from blistering pandemic-era sales levels as mortgage rates rocket higher in the most dramatic housing finance shake-up in decades.
“Recent weeks’ successive declines in mortgage rates will help qualify more home buyers, but limited housing inventory is significantly preventing housing demand from fully being satisfied,” said NAR Chief Economist Lawrence Yun.
Spike in Mortgage Rates Strangles Demand
The October pending home sales data reflects buyer activity when popular 30-year fixed mortgage rates shot up above 8% in mid-October before settling back around 7% in more recent weeks.
Skyrocketing borrowing costs over the past year have rapidly depleted home shoppers’ budgets and purchasing power, squeezing huge numbers of Americans out of the market entirely and forcing others to downgrade to lower price points.
With the average rate on a 30-year fixed loan more than double year-ago levels despite the recent retreat, still-high financing costs in tandem with stubbornly elevated home prices continue dampening affordability and sales.
All U.S. regions saw contract signings decline on a monthly basis in October except the Northeast. The Western market, where homes are typically the nation’s most expensive, recorded the largest monthly drop.
Pending transactions fell across all price tiers below $500,000 while rising for homes above that threshold. The shift partly reflects moderately improving supply conditions on the high end, even as demand rapidly recedes at lower price points.
Home Prices Still Climbing for Now
Even against shrinking demand, exceedingly tight inventories of homes listed for sale have so far prevented any meaningful cooling in the torrid home price appreciation that’s stretched affordability near the breaking point for many buyers.
The median existing home sales price rose 6.6% on the year in October to $379,100. While marking a slowdown from mid-2021, when prices were soaring 20% annually, it still represents an acceleration over the 5.7% rate seen last October.
With few homes hitting the market, bidding wars continue breaking out for even modest starter homes in many areas. In such seller-favorable conditions, a plunge in overall sales does little to crimp further rapid home value growth.
Leading indicators suggest home prices likely still have further to climb before lackluster sales and eroding affordability force more substantive cooling. But shifts in home values and sales usually lag moves in rates and mortgage activity by several months.
“The significant decline in pending sales suggests…further weakness in closed existing home sales in upcoming months,” said Swiss bank UBS economist Jonathan Woloshin.
With mortgage activity plunging to a quarter-century low, actual completed sales are widely expected to continue deteriorating into early next year or beyond as the pipe of signed deals still working through the market keeps drying up.
Path Ahead for Housing Market
Most economists expect home sales will likely continue slumping over the next six months or so until lower financing costs combined with a slow improving inventory offer some stability.
“We think housing activity has little prospect of bottoming out until spring 2024, at the earliest,” said Nancy Vanden Houten of Oxford Economics. She projects existing home sales will fall nearly 25% in 2024 from current-year levels.
Other analysts say still-strong demographics and a solid job market should prevent an all-out housing collapse, but that robust spring and summer recovery rallies like those seen earlier this century are unlikely in coming years.
Instead, as mortgage rates settle somewhere above 6% and homes trickle back on the market, sales activity should slowly stabilize around 10-15% below 2018-2019 levels through 2024 and beyond – marking a ‘new normal’ after ultra-hot pandemic conditions.
“I expect mortgage rates to moderate…helping home sales firm up a bit, but still remain below pre-pandemic activity,” said Yun. With fresh records signaling just how devastating this year’s rate spike proved for buyers, Yun expects the spring thaw in housing demand could come slower next year than markets anticipate.
Joe Gomes, Managing Director, Equity Research Analyst, Generalist , Noble Capital Markets, Inc.
Joshua Zoepfel, Research Associate, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Moving to Market Perform. With the shares exceeding our recently instituted $13 price target, we are lowering our rating to Market Perform from Outperform. While we remain impressed with operating results, we believe a good portion of the recent share performance is being driven in anticipation of a sale of the Company, which we do not believe is imminent.
Stock Performance. LWAY shares are up 82% since closing at $9.38 on November 13th. While we believe the sell off in the shares following strong operating results was unwarranted, the subsequent price rebound has exceeded our $13 price target. To maintain an Outperform rating, our PT would need to exceed $19.50, which we believe would have LWAY shares “priced to perfection” from an operating standpoint, which, given the uncertain state of the economy, is a stretch in our view.
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This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.
