Vera Bradley 4Q Profit Falls 18% On Taxes But Results Beat Views
03/15 04:22 PM
DOW JONES NEWSWIRES
Vera Bradley Inc.'s (VRA:$33.61,00$-0.25,00-0.74%) fiscal fourth-quarter earnings fell 18% on a much bigger tax bite, but the handbag maker's results nevertheless bested Wall Street estimates.
Shares were up 7.8% at $36.24 in after-hours trading Tuesday.
Through the close, the stock has more than doubled in value since it went public in October, when it priced at the high end of its expected range.
The company--which designs and sells women's accessories like handbags, wallets and duffle bags for travel--in the latest period saw its direct sales eclipse its previously dominant revenue stream, sales at other retailers like Barnes & Noble Inc. (BKS:$10.1100,$-0.5600,-5.25%) and Hallmark stores.
Vera Bradley (VRA:$33.61,00$-0.25,00-0.74%) has been aiming to expand its direct sales base, which includes its namesake stores and website.
Its results were strong in 2010, but when the economy was weaker, so was Vera Bradley's (VRA:$33.61,00$-0.25,00-0.74%) revenue:
The company saw sales decline 15% in the year ended January 2009, when discretionary products were a tougher sell.
For the quarter ended Jan. 29, Vera Bradley (VRA:$33.61,00$-0.25,00-0.74%) posted a profit of $14.2 million, or 35 cents a share, compared with $17.3 million, or 49 cents a share, a year earlier.
Adjusting the bottom line to assume a combined federal, state, and local effective tax rate of 40%, earnings rose to 39 cents a share from 30 cents.
Revenue increased 29% to $109.4 million.
Analysts surveyed by Thomson Reuters predicted earnings of 27 cents a share on revenue of $96 million.
Same-store sales increased 22%. Indirect sales, those made by independent retailers, were up 6%, while its direct sales surged 61%.
Gross margin rose to 56.5% from 55.3%.
-By Joan E. Solsman, Dow Jones Newswires; 212-416-2291; joan.solsman@ dowjones.com
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(END) Dow Jones Newswires
03-15-111622ET
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