Vera Bradley Adjusted 3Q Profit Rises More Than Analysts Expected

Vera Bradley Inc.'s (VRA) fiscal third-quarter earnings fell on expenses related to its transition to a public company, but the handbag maker's adjusted profit rose by more than analysts expected. The company designs and sells women's accessories like handbags, wallets and duffle bags for travel. Although most of its revenue is made through sales at other retailers such as Barnes & Noble Inc. (BKS) and Hallmark stores, it also operates a few dozen namesake stores, a sales base it plans to expand. It also has an online store. The latest results continue the company's strength reported in the first half of the year, with solid sales at external retailers and robust growth selling from its own platforms. But when the economy was weaker, so was Vera Bradley's revenue: The company's sales declined 15% in the year ended January 2009, when discretionary products were a tougher sell. For the quarter ended Oct. 30, Vera Bradley reported a profit of $6 million, or 17 cents a share, down from $12.8 million, or 36 cents a share, a year earlier. Excluding IPO and other impacts, earnings rose to 25 cents from 22 cents. Analysts surveyed by Thomson Reuters predicted 21 cents. Revenue increased 26% to $91.6 million as same-store sales surged 33%. Sales at Vera Bradley 's own operations surged 74% while indirect sales, those made by independent retailers and the bigger chunk of the company's top line, climbed 10%. Gross margin rose to 56.4% from 54.8%. Vera Bradley shares were down 0.4% at $35.60 in after-hours trading. Through the close, the stock has more than doubled in value from its IPO price. The company went public in October, pricing at the high end of estimates.