Vera Bradley (NASDAQ:VRA) fell to an all-time low after the handbag retailer swung to a fiscal first-quarter loss, disappointing Wall Street, and provided downbeat outlook.
Shares dropped to as low as $12.32 and were trading at $12.76, down 9.8 percent, at 2:56 p.m. in New York. The stock has lost 38 percent so far this year.
Net loss was $4.1 million, or $0.10 loss per diluted share, for the three months ended May 2, compared with a profit of $6.6 million, or $0.16 per diluted share, a year earlier, the Roanoke, Indiana-based company said in a statement today.
The company reported break-even first-quarter earnings, on an adjusted basis. Analysts expected a profit of $0.02 per share, according to Capital IQ data.
Vera Bradley took charges of $4.2 million in the quarter, primarily related to the closing of a manufacturing facility as part of previously announced plan to reduced costs.
Revenue fell to $101.1 million from $112.2 million year-over-year, missing the Wall Street consensus of $105.5 million.
Sales at stores open at least a year plunged 22 percent, while online sales dropped 9.7 percent, amid lower traffic and lower levels of online promotions.
The company, which has traditionally relied on its cotton-quilted products to drive business, has been struggling to sell customers on a revamped assortment of laser-cut, leather and microfiber handbags.
"We are not attracting enough new customers to the brand, and traffic and sales are still very challenging," chief executive officer Robert Wallstrom said in the statement. "Until we begin to see recovery in the business, we cannot predict the timing of or provide additional updates on achieving long-term financial targets."
Looking ahead, the company expects to report second quarter earnings of $0.10 to $0.13 per share and between $0.64 and $0.74 per share for the full year. The consensus estimates are for earnings of $0.17 and $0.84 per share.
Vera Bradley named Theresa Palermo chief marketing officer yesterday ahead of today’s earnings report. She replaced Angel Ilagan, who had been in the role for less than a year.