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Market Commentary and Intraday News

Vera Bradley shares drop after weaker outlook

261 days ago

(AP:NEW YORK) Vera Bradley tumbled 7 percent Thursday after the handbag maker cut its full-year guidance and its second-quarter net income fell 2 percent due to weak sales of summer merchandise.

THE SPARK: The Fort Wayne, Ind., company said Wednesday that it now expects full-year net income of $1.60 to $1.63 on revenue of $531 million to $536 million. That compares with prior guidance of net income of $1.68 to $1.71 per share on revenue of $535 million to $540 million.

Analysts had expected $1.69 per share on revenue of $536.4 million.

THE BIG PICTURE: Vera Bradley, like many of its peers, is coping with high cotton and labor costs. The company said Wednesday that its products had underperformed in May and June, but that results showed improvement in July when fall merchandise arrived in stores.

SHARE ACTION: Shares in Vera Bradley Inc. fell $1.77 to $21.85.


Copyright 2012 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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