Vera Bradley's (NASDAQ:VRA) shares were a hot ticket in pre-market trading after a strong trading update from the handbags and accessories maker.
The three months to the end of October saw net revenues from continuing operations edge up 1.2% to US$126.7mln from US$125.2mln in the same period of 2014.
While sales growth was nothing to write home about, net income from continuing operations shot up to US$10.3mln from US$8.7mln the year before.
Diluted earnings per share (EPS) climbed to 27 cents from 21 cents in the third quarter of fiscal 2014.
"We are pleased that better than expected revenue and gross profit percentage performance, along with disciplined expense management, drove EPS well above our guidance, despite a rather challenging retail environment,” said Robert Wallstrom, chief executive officer of Vera Bradley.
Wallstrom pointed to an increase of 5.4 percentage points in the gross profit in the quarter as a major achievement, which was largely driven by sourcing efficiencies.
Shares in Vera Bradley were up more than one-fifth in pre-market trading at US$14.10.