Vera Bradley (VRA) - Get Vera Bradley, Inc. Report shares jumped Wednesday after the company reported a surprise profit in the second quarter as the handbag and accessories retailer thrived during the pandemic.
The Fort Wayne, Indiana-based company reported second-quarter net income of $7.2 million, or 42 cents a share, up from net income of $5.9 million, or 17 cents, a year earlier.
Adjusted earnings were 32 cents share on revenue that rose 10% to $131.8 million. Analysts were expecting the company to report a loss of 7 cents on revenue of $100 million.
"Our team proved that by remaining agile, focusing on innovation that enhances the customer experience - in product, marketing, and technology - and controlling what we can control, we can drive strong results and position ourselves to emerge a stronger company," said CEO Rob Wallstrom.
E-commerce was a larger share of the company's total revenue in the quarter, thanks in part to the company's acquisition of digitall-native brand Pura Vida. Vera Bradley purchased a 75% stake in bracelet maker Pura Vida for $75 million in June 2019.
“Our e-commerce business (Vera Bradley and Pura Vida combined) was very strong in the quarter," Wallstrom said. "Our acquisition of digitally-native Pura Vida ... long with our continued investments in Vera Bradley’s e-commerce site and infrastructure, has positioned us well for the future.”
The company said that it was able to expand its consolidated gross margins through the sale of cotton masks, product collaborations and careful inventory management.
Vera Bradley shares were rising 25% to $6.77 in trading Wednesday.