Vera Bradley Income Declines
Fort Wayne-based Vera Bradley Inc. (Nasdaq: VRA) is reporting fiscal second quarter net income of $5.9 million, compared to $9.3 million during the same period last year. The handbag and clothing accessories designer and retailer says the results include $2.8 million in after-tax charges associated with the acquisition of Creative Genius Inc. In July, Vera Bradley acquired 75 percent interest in the California-based company, which also operates as Pura Vida Bracelets.
“Pura Vida is a great strategic fit for us due to their strong expertise in branding and social marketing strategies, as well as robust competencies in e-commerce and subscription-model selling,” said Rob Wallstrom, Vera Bradley CEO.
Wallstrom says the company successfully managed its expenses during the quarter, but it faces strong headwinds. “Retail remains challenging, particularly in the Indirect channel as our partners continue to feel the pressure of a difficult environment, and our total sales fell slightly below our expectations. In addition, gross margins continue to be pressured by increasing tariffs and higher shipping costs.”
Click here to review the financial report from Vera Bradley.
Last week, co-founder Pat Miller retired from the company’s board of directors. Miller started Vera Bradley with friend Barbara Bradley Baekgaard in 1982. Miller has served on the board since the beginning. Read our coverage here.