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Vera Bradley Net Dips, but Above Street View

Fourth-quarter sales up 28.5% on direct sales ahead 61%.

Boosted by a nearly 30 percent rise in sales, Vera Bradley Inc. on Tuesday reported fourth-quarter profits that handily exceeded analysts’ estimates.

 

On the basis of generally accepted accounting principles, net income fell 17.7 percent to $14.2 million, or 35 cents a diluted share, for the three months ended Jan. 19, from $17.3 million, or 49 cents, in last year’s period. On an adjusted basis, assuming a consistent tax rate, income rose 48 percent to $15.7 million, or 39 cents a diluted share, well ahead of the 27-cent profit expected by analysts, from $10.6 million, or 30 cents, last year.

 

Revenues at the Ft. Wayne, Ind.-based accessories firm jumped 28.5 percent to $109.4 million from $85.1 million. The company said indirect sales revenues gained 6 percent to $53.7 million, while direct sales increased 61 percent to $55.7 million. Same-store sales were up 22.1 percent.

 

Mike Ray, chief executive officer, said, “Looking ahead, we continue to be excited about the potential for Vera Bradley and remain focused on executing our growth strategies, which include expanding our product offerings and growing in underpenetrated markets.”

 

The company became a public firm in October.

 

For the year, net income was up 6.9 percent to $46.2 million, or $1.25 a diluted share, from $43.2 million, or $1.22, in 2009. Revenues rose 26.7 percent to $366.1 million from $288.9 million.

 

Shares jumped 4.4 percent in after-hours trading Tuesday to $35.08 following the disclosure of results. They closed at $33.61, down 0.7 percent, earlier in the day.