At first glance, Vera Bradley’s (VRA) earnings report looked great. The retailer reported a profit of 37 cents a share, above analyst forecasts of 32 cents.
But in the what-have-you-done-for-me-lately world of the stock market, that was the past, and the present and future, well they don’t look so hot. For the third quarter, the Vera Bradley, which competes against Coach (COH) and Michael Kors (KORS), among others, now expects sales between $128 million to $130 million, below forecasts for about $147 million, and a profit of 30 cents to 35 cents, below forecasts for a 48-cent profit. In 2014, Vera Bradley expects sales of $535 million to $540 million, below forecasts for $575, while its earnings should come in between $1.47 and $1.52, below expectations of $1.72. And did I mention that its margins are expected to decline too?
Put it all together and you have a recipe for a big drop. Vera Bradley’s shares have plunged 10% to $17.50 in after-hours trading.
Ouch.
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