Fort Wayne-based Vera Bradley Inc. (Nasdaq: VRA) is reporting third quarter net income of $10.3 million, compared to $6.9 million during the same period the previous year. Chief Executive Officer Robert Wallstrom says the "better than expected" revenue is due in part to sourcing efficiencies and success of made-for-outlet products.
Vera Bradley stock has soared today on the news. At 1:00 p.m., it was up more than 37 percent, or four dollars, topping $16.
The handbag and accessory says third quarter net revenues were $126.7 million, compared to $125.2 million last year. So far this year, Vera Bradley is reporting total net revenues of $348.5 million, compared to $356.4 million in 2014.
Wallstrom says, in its full-line and online stores, the company has "eliminated our hyper-promotions of 60 percent to 70 percent off and pared back our promotional days by approximately 50 percent during the third quarter." He says e-commerce sales continue to be negatively impacted by the move.
In a cost-cutting move, Vera Bradley exited its direct business in Japan. Last year, the company entered into a five-year deal with Look Inc. and Mitsubishi Corporation Fashion Co. to import and distribute its products in the Asian nation.