Vera Bradley swings back to profit and crushes consensus estimate

Vera Bradley Inc.’s stock
VRA,
+9.59%
rose 0.6% in premarket trade Wednesday, after the handbag and accessories company swung to a profit in its fiscal second quarter from a loss a year ago and swept past earnings estimates. The company posted net income of $9.25 million, or 30 cents a share, after a loss of $29.8 million, or 95 cents a share, in the year-earlier period. Adjusted per-share earnings came to 33 cents, well ahead of the 12 cent FactSet consensus. Revenue fell to $128.2 million from $130.4 million a year ago, below the $131.0 million FactSet consensus. “We are very pleased with the meaningful year-over-year improvement in second quarter earnings, driven by significant gross margin expansion and successful expense reduction efforts,” CEO Jackie Ardrey said in a statement. The company is now expecting fiscal 2024 revenue of $490 million to $500 million and for EPS to range from 57 cents to 65 cents. The FactSet consensus is for EPS of 60 cents and revenue of $498.1 million. The stock has gained 51% in the year to date, while the S&P 500
SPX,
+0.46%
has gained 17%.