Shares of Vera Bradley Inc. (VRA) - Get Report tumbled 11.1% to $9.05 on Wednesday after the women's handbags and fashion designer missed Wall Street's third-quarter earnings and revenue expectations.
The Roanoke, Indiana-based company reported net income of $4.2 million, or 12 cents a share, compared with $359,000, or 1 cent a share, a year ago, but missed analysts' expectations of 16 cents. The year-ago results included $7.9 million in after-tax charges.
Revenue totaled $97.7 million, down from $114.1 million in the year-earlier quarter, and short of analysts' expectations of $101.7 million.
Comparable-store sales decreased 16.5% for the quarter, reflecting a 13.1% decrease in comparable-store sales and a 24.8% decrease in e-commerce sales, the company said, which was partially offset by new store growth.
For the fourth quarter, Vera Bradley said that it expects net revenue of $114 million to $119 million, down from $132 million a year ago. The company said the decline is largely driven by reduced clearance. Analysts were expecting revenue to total $114 million.
"Third-quarter earnings were modestly below our expectations, primarily due to revenues at the low end of our guidance and a gross margin rate that was slightly below our guidance," CEO Robert Wallstrom said in a statement. "Higher-than-expected shipping costs offset some of our margin expansion, which brought our overall margin rate modestly under guidance. SG&A (Selling, General, and Administrative expenses were in line with expectations."