This story has been updated from 12:35 P.M. with new information and closing stock prices.
NEW YORK ( TheStreet) -- Retail stocks ended Thursday on a mixed note, after two more specialty retailers reported disappointing earnings, and a handful of retailers issued generally positive May same-store sales numbers.
Vera Bradley (VRA) shares plunged 7.8% to $20.70 following news that its longtime CEO was resigning as well as slow same-store sales in the first quarter.
Vera Bradley announced late Wednesday that CEO Michael Ray informed the board hat he plans to retire from his position. Ray will continue as CEO until a successor is in place, the company said.The handbag and accessories company said first-quarter 2014 earnings fell 26% from the year-earlier quarter to 23 cents a share, yet still beat Wall Street's expectations of 21 cents a share. Net income for the quarter was $9.2 million compared with $12.6 million the year before. Also see: Michael Kors Beat on Both Profit and Revenue Also see: Urban Outfitters Drops on Lower-than-Expected Sales Net revenue rose 5% to $123 million. Vera Bradley said that while store sales rose 34% in the quarter, the growth was from new stores opened. Comparable-store sales merely inched 0.9% higher, while online sales jumped 23% in the quarter. On the other hand, total SG&A expenses were $55.2 million for the first quarter, roughly 45% of net revenue, up 460 basis points from the prior year, primarily due to "lower revenues in the indirect segment and full-price stores and annualization of employee-related expenses," the company said. Vera Bradley's cash flow also declined by more than half from a year earlier to $14.9 million, related to increased inventory, it said. The company narrowed its revenue and earnings forecast for the second quarter to a range of $123 million to $126 million, which essentially means little if any growth from the first quarter. Diluted earnings per share are expected to be in a range of 31 cents to 33 cents. At least three analysts downgraded the stock following the earnings release and news of Ray's departure. "In the near term, VRA's growth rate will likely be pressured as the company manages through challenges in the merchandise assortment and uncertainty at the executive level," Wells Fargo Securities analyst Evren Kopelman wrote in a note downgrading the stock to market perform.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV