This story has been updated from 2:45 pm EST with additional information and analysts comments.

NEW YORK (TheStreet) -- Shares of Vera Bradley (VRA) - Get Vera Bradley, Inc. Report   fell as much as 8% on Wednesday following the handbag maker's nearly 50% drop in quarterly profit.

Vera Bradley reported fiscal second-quarter net income of $7.6 million, or 19 cents per diluted share, compared to $15 million, or 37 cents per diluted share in the same quarter last year. The company previously projected earnings of 18 cents to 20 cents per share on revenue of $113 million to $120 million.

Revenue decreased 4.2% from the prior year's second quarter to $120.1 million. Gross margin fell to 53.3% from 57.2% a year ago, due to increased online promotions.

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The company said comparable sales fell 5.3%, as a 14.2% decline in store sales partially offset by a 9.3% increase in e-commerce revenue. Indirect sales were down 18% to $41.2 million.

For the current quarter, the Vera Bradley forecast per share earnings from continuing operations of 18 cents to 20 cents, and revenue of $123 million to $128 million. Analysts polled by Thomson Reuters projected earnings of 26 cents a share on revenue of $126.7 million.

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The company raised the low end of its revenue outlook for the year by $10 million to a range of $520 million to $530 million. Vera Bradley backed its earnings guidance of $1.00 to $1.10  per share.

"Even though the short-term continues to be challenging, I am very pleased with the progress we are making against our long-term product, distribution, and marketing strategies," said CEO Robert Wallstrom.

Shares were down an additional 5.4% to $21.51 in after hours trading.

The tough second quarter was expected, "with store comps and Indirect sales remaining sharply negative and margins eroding significantly," Sterne Agee analyst Ike Boruchow wrote in a note to clients. Boruchow also noted that while the fourth quarter may also prove challenging, "Management has put a turnaround plan in place and is starting to see the first signs of improvement (particularly in e-commerce), but it is very early and there is still a lot of heavy lifting ahead."

Separately, TheStreet Ratings team rates VERA BRADLEY INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:

"We rate VERA BRADLEY INC (VRA) a HOLD. The primary factors that have impacted our rating are mixed some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and disappointing return on equity."

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