Vera Bradley Inc. shares tumbled 16% to their all-time low on Wednesday after the handbag seller reported disappointing fourth-quarter profit and sales and an outlook sharply below Wall Street expectations. Chief Executive Robert Wallstrom noted the biggest challenge facing the company, best known for its fabric floral prints, is attracting enough new customers to its brand. He said the company will invest more in products and categories that it said are helping to attract new customers, including leather. The news comes a day after Vera Bradley said it's closing its New Haven, Ind. manufacturing plant because it costs about 90% more to make goods in the U.S. than in overseas factories. The plant makes about 5% of the company's products and employs about 250 people.
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