By early afternoon, shares had added 8% to $28.34.
The women's accessories maker recorded $157.5 million in revenue for the three months to Feb. 1, a 3.1% year-over-year decrease. However, in the direct segment revenues increased 5.2% to $108.7 million and net revenues in stores climbed 14.5%.
Comparable-store sales declined 10.2% and e-commerce revenue dropped 7.2%, reflecting a decrease in traffic, lower average transaction size and the negative impact of severe winter weather.
The Fort Wayne, Ind.-based business reported adjusted net income of 55 cents a share.
Analysts surveyed by Thomson Reuters had forecast net income of 46 cents a share and total sales of $146.86 million.
However, guidance for the year ahead came in below forecasts. For its first quarter, management guides for revenue in the range of $116 million to $120 million, less than analysts' estimates of $123.1 million. Earnings per share are expected between 11 cents and 13 cents a share, well below expectations of 22 cents a share.
Over fiscal 2015, sales are expected between $545 million and $565 million, with earnings of $1.20 to $1.30 a share. Analysts expected sales of $544.9 million and earnings of $1.50 a share.
"We continue to face external headwinds and certain challenges within the business, and fiscal 2015 will be a year of transition for Vera Bradley," said CEO Robert Wallstrom in a statement. "Even though fiscal 2015 will be challenging and a year of enormous change, our entire team is aligned and very excited about the future of our brand."