Luggage and travel items retailer Vera Bradley, Inc. (NASDAQ:VRA) announced earnings result of its 3rd quarter as it dropped its full-year forecast after missing its own prediction in the quarter.
The ROANOKE, IN-based company said at the end of its second quarter that the sales would surge, however Chief Executive Robert Wallstrom said Wednesday that headwinds, predominantly in the wholesale channel will continue to ponder on earnings for the final quarter.
Meanwhile increased marketing expenses and soft demand have affected the bottom line of the Fort Wayne, Ind., company, known for its brightly patterned quilted tote bags.
Vera Bradley now expects fourth-quarter earnings of 23 cents to 25 cents a share on revenue of $135 million to $140 million. Analysts meanwhile predicted 47 cents a share on $158.8 million.
Meanwhile the company also cut its full-year guidance to earnings of 62 cents to 65 cents a share on revenue of $486 million to $491 million. In September, the company forecasted earnings of 88 cents to 92 cents on $510 to $515 million in revenue.
All and all during the three month period, Vera Bradley posted a profit of $8.8 million, or 24 cents a share, down from $10.3 million, or 27 cents a share, year over year. Excluding certain tax-related charges, the company reported earnings of $7.2 million or 20 cents per share, that was less than $10.3 million or 27 cents last year.
Furthermore Vera Bradley, (VRA) comparable sales dropped for the eighth successive period by 5.7%, while total sales were flat at $127.7 million. Analysts however had predicted earnings of 22 cents on $129.2 million in revenue.