VRA-2014.11.01 8K


 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
___________________________
FORM 8-K
___________________________
 
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D)
OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): December 10, 2014
___________________________ 
VERA BRADLEY, INC.
(Exact name of registrant as specified in its charter)
___________________________
 
Indiana
 
001-34918
 
27-2935063
(State or Other Jurisdiction
of Incorporation)
 
(Commission
File Number)
 
(IRS Employer
Identification No.)
 
12420 Stonebridge Road,
Roanoke, Indiana
 
46783
(Address of Principal Executive Offices)
 
(Zip Code)
(877) 708-8372
(Registrant’s telephone number, including area code)
None
(Former name, former address and former fiscal year, if changed since last report)
___________________________

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
¨
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
 
 
 
 
¨
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
 
 
 
 
¨
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
 
 
 
 
¨
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 






The information in Items 2.02 and 9.01 of this Form 8-K is being furnished and shall not be deemed “filed” for the purpose of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section. The information in this Form 8-K shall not be incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, as amended.
Item 2.02 Results of Operations and Financial Condition
On December 10, 2014, Vera Bradley, Inc. issued an earnings press release for the quarterly period ended November 1, 2014. The press release, including attachments, is furnished as Exhibit 99.1 to this report.
Item 9.01 Financial Statements and Exhibits
(d) Exhibits
99.1
 
Press Release dated December 10, 2014
















































SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
 
 
 
 
 
 
 
 
 
 
Vera Bradley, Inc.
 
 
 
 
(Registrant)
 
 
 
Date: December 10, 2014
 
 
 
/s/ Kevin J. Sierks
 
 
 
 
Kevin J. Sierks
Executive Vice President – Chief Financial Officer





EXHIBIT INDEX
 
Exhibit No.
 
Description
99.1
 
Press release dated December 10, 2014


EX-99.1 2014.11.01


VERA BRADLEY ANNOUNCES FISCAL YEAR 2015 THIRD QUARTER RESULTS

Third quarter net revenues from continuing operations totaled $125.2 million

Income from continuing operations totaled $8.7 million, or $0.21 per diluted share, for the quarter

Company ends quarter with strong cash position of $90.3 million and year-over-year
inventories down 29.4%

Company purchased $3.5 million under $40 million share repurchase plan

Company expects earnings from continuing operations of $1.00 to $1.05 per share for fiscal year

FORT WAYNE, Ind., December 10, 2014 - Vera Bradley, Inc. (Nasdaq: VRA) (“Vera Bradley” or the “Company”) today announced its financial results for the third quarter and nine months ended November 1, 2014.

Overview of Third Quarter and Year-to-Date Results

Net revenues from continuing operations totaled $125.2 million for the current year third quarter, compared to $128.9 million in the prior year third quarter ended November 2, 2013. Income from continuing operations totaled $8.7 million, or $0.21 per diluted share, for the current year third quarter compared to $15.7 million, or $0.39 per diluted share, in the prior year third quarter.

For the nine months ended November 1, 2014, net revenues from continuing operations totaled $356.4 million, compared to $374.5 million in the prior year nine months ended November 2, 2013. Income from continuing operations totaled $23.5 million, or $0.58 per diluted share, for the current year nine month period compared to $40.2 million, or $0.99 per diluted share, in the comparable prior year period.

Robert Wallstrom, Chief Executive Officer, noted, “We exceeded our earnings per share guidance for the quarter. Our third quarter revenues and gross margin rate were in the mid-range of our guidance; SG&A was favorable to our expectations due to expense control and the timing of certain expenses that will be incurred in the fourth quarter.”

Wallstrom continued, “We remain confident that our five-year strategic plan and the steps we are taking to evolve our merchandising, distribution and marketing are the right ones for the future of our business. We are in the early stages of our transformation, and we have made substantial progress over the last three quarters in modernizing and elevating our product assortments, expanding our reach through new store openings, evolving to a ‘made-for-outlet’ model in our factory outlet stores, enhancing our online presence and growing our department store relationships. We continue to face short-term challenges, such as weak store traffic, but believe we are heading in the right direction and that these efforts will pay off in the years ahead.”

“Importantly, we have carefully managed our inventories and ended the quarter with a very solid cash position,” Wallstrom added.

Discontinued Operations

In June 2014, the Company entered into a five-year agreement with Mitsubishi Corporation Fashion Company and Look Inc. to import and distribute Vera Bradley products in Japan. As a result of moving to this wholesale business model, the Company exited its direct business in Japan during the third quarter of fiscal 2015 and is accounting for it as a discontinued operation. Income statement numbers referenced in this release reflect the Company’s continuing operations.








Third Quarter Results

Current year third quarter net revenues from continuing operations of $125.2 million were in the mid-range of the Company’s guidance of $123 million to $128 million. Prior year third quarter revenues from continuing operations totaled $128.9 million.

Current year third quarter Direct segment revenues totaled $77.9 million, a 15.1% increase over $67.7 million in the prior year third quarter. In the Company’s stores, third quarter year-over-year net revenues grew 10.4%, reflecting the opening of 11 full-line and 12 factory outlet stores during the past 12 months. Comparable sales (including e-commerce) increased 0.9% for the quarter (reflecting a 13.5% decline in comparable store sales and a 22.2% increase in e-commerce sales). As expected, third quarter comparable store sales were negatively impacted by year-over-year declines in store traffic.

Indirect segment revenues decreased 22.8% to $47.3 million from $61.2 million in the prior year third quarter, primarily due to lower orders from the Company’s specialty retail accounts as well as a reduction in the number of specialty retail accounts.

Gross profit from continuing operations for the quarter totaled $65.8 million, or 52.5% of net revenues, compared to $71.2 million, or 55.2% of net revenues, in the prior year third quarter. The year-over-year decline in gross margin rate was primarily related to deleveraging overhead costs and modestly increased year-over-year online promotional activity. The third quarter gross margin rate was consistent with guidance of 52.0% to 53.0%.

SG&A expense from continuing operations totaled $53.3 million, or 42.5% of net revenues, in the current year third quarter, compared to $47.6 million, or 36.9% of net revenues, in the prior year third quarter. As expected, SG&A dollars increased over the prior year primarily due to strategic investments including new store expenses, key management additions, marketing and e-commerce initiatives. The SG&A expense rate was below the 43.0% to 44.5% guidance primarily due to cost containment efforts and the timing of approximately $300,000 of expenses which were delayed to the fourth quarter.

Operating income from continuing operations totaled $13.6 million, or 10.9% of net revenues, in the current year third quarter, compared to $24.7 million, or 19.2% of net revenues, in the prior year third quarter.

The effective tax rate was 34.9% for the quarter compared to 36.3% in the prior year third quarter. The year-over-year decrease in the effective rate was due primarily to state tax matters including a reversal of reserves no longer deemed necessary.

YTD Results

Current year net revenues from continuing operations for the nine months totaled $356.4 million, compared to $374.5 million in the same period last year.

Direct segment revenues totaled $227.9 million for the nine months ended November 1, 2014, a 6.7% increase over $213.5 million in the prior year comparable period. In the Company’s stores, current year-over-year net revenues grew 6.5%, reflecting the opening of 11 full-line and 12 factory outlet stores during the past 12 months, which was partially offset by a comparable store sales decline. Comparable sales (including e-commerce) fell 4.0% for the nine months (reflecting a 14.0% decline in comparable store sales and a 10.8% increase in e-commerce sales).

For the nine months, Indirect segment revenues decreased 20.2% to $128.5 million from $160.9 million in the prior year, primarily due to lower orders from the Company’s specialty retail accounts as well as a reduction in the number of specialty retail accounts.

Gross profit from continuing operations for the nine months totaled $189.0 million, or 53.0% of net revenues, compared to $209.6 million, or 56.0% of net revenues, in the comparable prior year period. The year-over-year decline in gross margin rate was primarily related to deleveraging overhead costs and increased year-over-year promotional activity.

SG&A expense from continuing operations totaled $154.0 million, or 43.2% of net revenues, in the current year nine months, compared to $148.7 million, or 39.7% of net revenues, in the prior year period.

Operating income from continuing operations totaled $38.1 million, or 10.7% of net revenues, in the current year nine-month period, compared to $64.5 million, or 17.2% of net revenues, in the prior year period.

The effective tax rate was 37.9% for the nine months compared to 37.2% in the prior year nine months.






Cash flow from operating activities for the nine months totaled $56.3 million, compared to $34.8 million for the same period last year. The improvement was driven primarily by a reduction in inventory levels.

Cash and cash equivalents as of November 1, 2014 totaled $90.3 million compared to $13.7 million at the end of last year’s third quarter. The Company had no debt outstanding at November 1, 2014. Quarter-end inventory was $106.3 million, below guidance of $125 million to $135 million and compared to $150.5 million last year. Net capital spending for the nine months totaled $22.4 million.

During the third quarter, the Company repurchased approximately $3.5 million of common stock under its $40 million share repurchase plan (equating to approximately 169,000 shares at an average price of $20.96).

Fourth Quarter and Fiscal Year 2015 Outlook

For the fourth quarter of fiscal 2015, on a continuing operations basis, the Company expects:
Net revenues to be in the range of $158 million to $163 million compared to prior year fourth quarter revenues of $156.4 million.
The gross margin rate to range from 53.5% to 54.5% compared to 52.8% in the prior year fourth quarter.
SG&A as a percent of sales to range from 35.5% to 36.5% compared to 33.6% in the prior year fourth quarter.
Diluted earnings per share from continuing operations to be in the range of $0.43 to $0.47, based on diluted weighted-average shares outstanding of 40.4 million and an effective tax rate of 38.4%. Diluted earnings per share from continuing operations totaled $0.49 in the prior year fourth quarter.

The Company expects inventory to be $100 million to $110 million at the end of the fiscal year, compared to $136.9 million at the end of last fiscal year.

For fiscal 2015, on a continuing operations basis, the Company expects:
Net revenues to be in the range of $514 million to $520 million compared to $530.9 million last year.
The gross margin rate to range from 53.0% to 53.5% compared to 55.0% last year.
SG&A as a percent of sales to range from 40.8% to 41.3% compared to 37.9% last year.
Diluted earnings per share from continuing operations to be in the range of $1.00 to $1.05, based on diluted weighted-average shares outstanding of 40.6 million and an effective tax rate of 38.4%. Diluted earnings per share from continuing operations totaled $1.48 last year.
Net capital spending of approximately $40.0 million.

Call Information

A conference call to discuss fiscal 2015 third quarter results is scheduled for today, Wednesday, December 10, 2014, 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) 587-0613, and enter the access code 5189386. A replay of the call will be available shortly after the conclusion of the call and remain available through December 24, 2014. To access the recording, listeners should dial (877) 870-5176, and enter the access code 5189386.

About Vera Bradley, Inc.

Vera Bradley is a leading designer of women’s handbags and accessories, luggage and travel items, eyewear, stationery and gifts. Founded in 1982 by friends Barbara Bradley Baekgaard and Patricia R. Miller, the brand’s iconic designs and versatile styles offer women of all ages a colorful way to accessorize every look.

Vera Bradley offers a unique, multi-channel sales model as well as a focus on service and a high level of customer engagement. The Company sells its products through two reportable segments: Direct and Indirect. The Direct business consists of sales of Vera Bradley products through the Company’s full-line and factory outlet stores in the United States, verabradley.com, eBay and its annual outlet sale in Fort Wayne, Indiana. The Indirect business consists of sales of Vera Bradley products to approximately 2,700 specialty retail doors, substantially all of which are located in the United States, as well as select department stores, national accounts, third party e-commerce sites, its wholesale business in Japan and third-party inventory liquidation.

The Company’s commitment to breast cancer research continues to increase its reach through the Vera Bradley Foundation for Breast Cancer.






For more information about Vera Bradley (Nasdaq: VRA), visit www.verabradley.com/mediaroom.

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.

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 brand; possible inability to successfully implement our growth strategies or manage our growing business; possible inability to successfully open new stores as planned; adverse changes in the cost of raw materials and labor used to manufacture our products; and possible adverse effects resulting from a significant disruption in our single distribution facility. For a discussion of these and other risks and uncertainties that could cause actual results to differ materially from those contained in our forward-looking statements, please refer to “Risk Factors” in Part I, Item 1A of our Annual Report on Form 10-K for the fiscal year ended February 1, 2014 and Part II, Item 1A of our Quarterly Report on Form 10-Q for the quarter ended November 1, 2014. We undertake no obligation to publicly update or revise any forward-looking statement. Financial schedules are attached to this release.

CONTACTS:
Investors:
Julia Bentley, VP of Investor Relations and Communications
jbentley@verabradley.com
(260) 207-5116

Media:    
877-708-VERA (8372)                
Mediacontact@verabradley.com


    





Vera Bradley, Inc.
Consolidated Balance Sheets
(in thousands)
(unaudited)
 
 
November 1,
2014
 
February 1,
2014
 
November 2,
2013
Assets
 
 
 
 
 
 
Current assets:
 
 
 
 
 
 
Cash and cash equivalents
 
$
90,334

 
$
59,215

 
$
13,712

Accounts receivable, net
 
38,136

 
29,174

 
44,976

Inventories
 
106,256

 
136,923

 
150,512

Income taxes receivable
 
2,717

 

 
1,632

Prepaid expenses and other current assets
 
9,303

 
9,952

 
9,964

Deferred income taxes
 
15,297

 
13,094

 
12,373

Total current assets
 
262,043

 
248,358

 
233,169

Property, plant, and equipment, net
 
103,567

 
84,940

 
81,969

Other assets
 
614

 
1,085

 
1,289

Total assets
 
$
366,224

 
$
334,383

 
$
316,427

Liabilities and Shareholders’ Equity
 
 
 
 
 
 
Current liabilities:
 
 
 
 
 
 
Accounts payable
 
$
28,511

 
$
27,745

 
$
27,595

Accrued employment costs
 
14,039

 
10,586

 
11,691

Other accrued liabilities
 
17,699

 
14,891

 
15,867

Income taxes payable
 
2,592

 
1,625

 

Total current liabilities
 
62,841

 
54,847

 
55,153

Deferred income taxes
 
3,323

 
4,643

 
6,539

Other long-term liabilities
 
24,010

 
19,746

 
18,962

Total liabilities
 
90,174

 
79,236

 
80,654

Shareholders’ equity:
 
 
 
 
 
 
Additional paid-in-capital
 
80,488

 
78,153

 
78,061

Retained earnings
 
199,108

 
178,002

 
158,556

Accumulated other comprehensive loss
 
(13
)
 
(1,008
)
 
(844
)
Treasury stock
 
(3,533
)
 

 

Total shareholders’ equity
 
276,050

 
255,147

 
235,773

Total liabilities and shareholders’ equity
 
$
366,224

 
$
334,383

 
$
316,427






Vera Bradley, Inc.
Consolidated Statements of Income
(in thousands, except per share data)
(unaudited)
 
 
Thirteen Weeks Ended
 
Thirty-Nine Weeks Ended
 
 
November 1,
2014
 
November 2,
2013
 
November 1,
2014
 
November 2,
2013
Net revenues
 
$
125,204

 
$
128,949

 
$
356,361

 
$
374,477

Cost of sales
 
59,436

 
57,710

 
167,394

 
164,900

Gross profit
 
65,768

 
71,239

 
188,967

 
209,577

Selling, general, and administrative expenses
 
53,274

 
47,565

 
153,982

 
148,691

Other income
 
1,110

 
1,027

 
3,152

 
3,608

Operating income
 
13,604

 
24,701

 
38,137

 
64,494

Interest expense, net
 
215

 
139

 
319

 
470

Income from continuing operations before income taxes
 
13,389

 
24,562

 
37,818

 
64,024

Income tax expense
 
4,668

 
8,905

 
14,326

 
23,799

Income from continuing operations
 
8,721

 
15,657

 
23,492

 
40,225

Loss from discontinued operations, net of taxes
 
(1,780
)
 
(431
)
 
(2,386
)
 
(859
)
Net income
 
$
6,941

 
$
15,226

 
$
21,106

 
$
39,366

Basic weighted-average shares outstanding
 
40,663

 
40,605

 
40,663

 
40,596

Diluted weighted-average shares outstanding
 
40,716

 
40,652

 
40,720

 
40,633

Net income (loss) per share - basic
 
 
 
 
 
 
 
 
Continuing operations
 
$
0.21

 
$
0.39

 
$
0.58

 
$
0.99

Discontinued operations
 
(0.04
)
 
(0.01
)
 
(0.06
)
 
(0.02
)
Net income
 
$
0.17

 
$
0.37

 
$
0.52

 
$
0.97

Net income (loss) per share - diluted
 
 
 
 
 
 
 
 
Continuing operations
 
$
0.21

 
$
0.39

 
$
0.58

 
$
0.99

Discontinued operations
 
(0.04
)
 
(0.01
)
 
(0.06
)
 
(0.02
)
Net income
 
$
0.17

 
$
0.37

 
$
0.52

 
$
0.97






Vera Bradley, Inc.
Consolidated Statements of Cash Flows
(in thousands)
(unaudited)
 
 
Thirty-Nine Weeks Ended
 
 
November 1,
2014
 
November 2,
2013
Cash flows from operating activities
 
 
 
 
Net income
 
$
21,106

 
$
39,366

Adjustments to reconcile net income to net cash provided by operating activities:
 
 
 
 
Depreciation of property, plant, and equipment
 
10,957

 
10,651

Provision for doubtful accounts
 
(129
)
 
(190
)
Loss on disposal of property, plant, and equipment
 

 
9

Stock-based compensation
 
2,943

 
2,857

Deferred income taxes
 
(3,523
)
 
(624
)
Changes in assets and liabilities:
 
 
 
 
Accounts receivable
 
(8,833
)
 
(7,921
)
Inventories
 
30,667

 
(19,154
)
Prepaid expenses and other assets
 
1,120

 
1,531

Accounts payable
 
(6,901
)
 
12,742

Income taxes payable
 
(1,750
)
 
(8,726
)
Accrued and other liabilities
 
10,596

 
4,305

Net cash provided by operating activities
 
56,253

 
34,846

Cash flows from investing activities
 
 
 
 
Purchases of property, plant, and equipment
 
(22,358
)
 
(15,418
)
Net cash used in investing activities
 
(22,358
)
 
(15,418
)
Cash flows from financing activities
 
 
 
 
Payments on financial-institution debt
 

 
(45,000
)
Borrowings on financial-institution debt
 

 
30,000

Tax withholdings for equity compensation
 
(608
)
 
(411
)
Repurchase of common stock
 
(3,092
)
 

Other financing activities, net
 
(71
)
 
122

Net cash used in financing activities
 
(3,771
)
 
(15,289
)
Effect of exchange rate changes on cash and cash equivalents
 
995

 
(30
)
Net increase in cash and cash equivalents
 
$
31,119

 
$
4,109

Cash and cash equivalents, beginning of period
 
59,215

 
9,603

Cash and cash equivalents, end of period
 
$
90,334

 
$
13,712

Supplemental disclosure of cash flow information
 
 
 
 
Non-cash operating, investing, and financing activities
 
 
 
 
Repurchase of common stock incurred but not yet paid
 
$
441

 
$

Property, plant, and equipment expenditures incurred but not yet paid
 
$
7,226

 
$












Vera Bradley, Inc.
Supplemental Statements of Income Fiscal 20151 
(in thousands, except per share amounts)
(unaudited)
 
 
Thirteen Weeks Ended
 
 
May 3,
2014
 
August 2,
2014
 
November 1,
2014
Net revenues
 
$
112,197

 
$
118,960

 
$
125,204

Cost of sales
 
52,442

 
55,516

 
59,436

Gross profit
 
59,755

 
63,444

 
65,768

Selling, general, and administrative expenses
 
50,045

 
50,663

 
53,274

Other income
 
1,577

 
465

 
1,110

Operating income from continuing operations
 
11,287

 
13,246

 
13,604

Interest expense, net
 
80

 
24

 
215

Income from continuing operations before income taxes
 
11,207

 
13,222

 
13,389

Income tax expense
 
4,330

 
5,328

 
4,668

Income from continuing operations
 
6,877

 
7,894

 
8,721

Discontinued operations, net of income taxes
 
(310
)
 
(296
)
 
(1,780
)
Net income
 
$
6,567

 
$
7,598

 
$
6,941

Basic weighted-average shares outstanding
 
40,639

 
40,686

 
40,663

Diluted weighted-average shares outstanding
 
40,725

 
40,719

 
40,716

Net income (loss) per share - basic
 
 
 
 
 
 
Continuing operations
 
$
0.17

 
$
0.19

 
$
0.21

Discontinued operations
 
(0.01
)
 
(0.01
)
 
(0.04
)
Net income
 
$
0.16

 
$
0.19

 
$
0.17

Net income (loss) per share - diluted
 
 
 
 
 
 
Continuing operations
 
$
0.17

 
$
0.19

 
$
0.21

Discontinued operations
 
(0.01
)
 
(0.01
)
 
(0.04
)
Net income
 
$
0.16

 
$
0.19

 
$
0.17







Vera Bradley, Inc.
Supplemental Statements of Income Fiscal 20141 
(in thousands, except per share amounts)
(unaudited)
 
 
Thirteen Weeks Ended
 
Fifty-Two Weeks Ended
 
 
May 4,
2013
 
August 3,
2013
 
November 2,
2013
 
February 1,
2014
 
February 1,
2014
Net revenues
 
$
121,559

 
$
123,969

 
$
128,949

 
$
156,419

 
$
530,896

Cost of sales
 
54,085

 
53,104

 
57,710

 
73,784

 
238,683

Gross profit
 
67,474

 
70,865

 
71,239

 
82,635

 
292,213

Selling, general, and administrative expenses
 
54,078

 
47,157

 
47,646

 
52,540

 
201,421

Other income
 
1,951

 
630

 
1,027

 
1,168

 
4,776

Operating income from continuing operations
 
15,347

 
24,338

 
24,620

 
31,263

 
95,568

Interest expense, net
 
141

 
82

 
58

 
101

 
382

Income from continuing operations before income taxes
 
15,206

 
24,256

 
24,562

 
31,162

 
95,186

Income tax expense
 
5,860

 
9,034

 
8,905

 
11,258

 
35,057

Income from continuing operations
 
9,346

 
15,222

 
15,657

 
19,904

 
60,129

Discontinued operations, net of income taxes
 
(157
)
 
(271
)
 
(431
)
 
(458
)
 
(1,317
)
Net income
 
$
9,189

 
$
14,951

 
$
15,226

 
$
19,446

 
$
58,812

Basic weighted-average shares outstanding
 
40,580

 
40,603

 
40,605

 
40,606

 
40,599

Diluted weighted-average shares outstanding
 
40,624

 
40,623

 
40,652

 
40,694

 
40,648

Net income (loss) per share - basic
 
 
 
 
 
 
 
 
 
 
Continuing operations
 
$
0.23

 
$
0.37

 
$
0.39

 
$
0.49

 
$
1.48

Discontinued operations
 

 
(0.01
)
 
(0.01
)
 
(0.01
)
 
(0.03
)
Net income
 
$
0.23

 
$
0.37

 
$
0.37

 
$
0.48

 
$
1.45

Net income (loss) per share - diluted
 
 
 
 
 
 
 
 
 
 
Continuing operations
 
$
0.23

 
$
0.37

 
$
0.39

 
$
0.49

 
$
1.48

Discontinued operations
 

 
(0.01
)
 
(0.01
)
 
(0.01
)
 
(0.03
)
Net income
 
$
0.23

 
$
0.37

 
$
0.37

 
$
0.48

 
$
1.45

 
 
 
 
 
 
 
 
 
 
 
1On June 4, 2014, the Company entered into a five-year agreement with Mitsubishi Corporation and Look Inc. to import and distribute Vera Bradley products in Japan. As a result of moving to this wholesale business model, the Company exited its direct retail business in Japan in the third quarter. The supplemental schedules provided above recasts the Company's first three quarters of fiscal 2015 and four quarters and year-to-date fiscal 2014 income statements to present the Japan results as discontinued operations.