Vera Bradley's Profit, Sales And Outlook Miss Expectations

Vera Bradley Inc.'s stock could be in for a rough ride in premarket trade Wednesday, once a trading halt is lifted at 8:30 a.m Eastern, after the handbags and accessories seller missed profit and sales expectations and provided a downbeat outlook. For the quarter ended May 2, the company swung to a net loss of $4.1 million, or 10 cents a share, from $6.6 million, or 16 cents a share in the year-earlier period. Adjusted earnings, which exclude one-time severance and restructuring charges, were breakeven on a per-share basis, missing the FactSet consensus for earnings of 2 cents a share. Revenue fell to $101.1 million from $112.2 million, below the FactSet consensus of $105.3 million, amid disappointing direct segment sales and lower promotional activity. "We are not attracting enough new customers to the brand, and traffic and sales are still very challenging," said Chief Executive Robert Wallstrom. Looking ahead, the company expects fiscal second-quarter revenue of $116 million to $120 million and full-year revenue of $480 million to $495 million, below FactSet consensus estimates of $121.2 million and $512.7 million, respectively. The stock has tumbled 31% year to date, while the S&P 500 has gained 2.5%.