Shares of Vera Bradley Inc (NASDAQ:VRA) jumped double digits after reporting better-than-expected second-quarter earnings, an upbeat full-year outlook and two new partnerships, including a licensing deal with The Walt Disney Company’s (NYSE:DIS) Disney Theme Park Merchandise division.
The accessory maker reported earnings of US$0.26 per share on revenue of US$113.6mln compared with US$0.06 EPS on revenue of US$112.4mln in the previous year’s second quarter.
The Indiana-based company beat Wall Street estimates of US$0.16 EPS on revenue of $113mln.
Shares of Vera Bradley jumped more than 13% to US$16.16 in Wednesday morning trading.
“We are very pleased that our second quarter results exceeded both expectations and last year’s performance, primarily driven by a higher-than-expected gross margin rate related to reduced clearance, improved full-price selling, and freight and shipping efficiencies, as well as better-than-expected SG&A expense management,” said CEO Robert Wallstrom in the company’s press release.
For the third quarter, the company expects earnings of US$0.14 to US$0.16 per share on revenue of US$98mln to US$1103mln compared with analyst estimates of US$0.15 per share on revenue of US$97.3mln.
For the full year, the company expects earnings of US$0.55 to US$0.62 per share on revenue of US$410mln to US$420mln, ahead of analyst estimates of US$0.49 per share on revenue of US$413.8mln.
Partnerships
Vera Bradley is known for its brightly-colored prints and patterns, fashioning the fabric into bags, wallets and other accessories.
The company inked a licensing agreement with Disney Theme Park Merchandise to create a limited edition pattern called Mickey’s Paisley Celebration.
The collection is will feature 11 items, including bags and accessories, with prices ranging from US$14 to US$128.
The Disney-themed collection is expected to launch Thursday.
Vera Bradley also signed a licensing agreement with Sunham Home Fashions for a bath collection. That collection is expected to launch in fall of 2019.