Vera Bradley Q3 net revenues down 6 percent

REPORT_ Vera Bradley net revenues for the third quarter

decreased by 6 percent. Gross profit for the current year third quarter decreased 10.3 percent resulting in a gross margin rate of 55.3 percent compared to 58 percent in the prior year third quarter. Direct segment revenues increased 7.1 percent. Third quarter year-over-year net revenues in the company's stores grew 18 percent. SG&A as a percentage of net revenues decreased 125 basis points to 37.5 percent compared to 38.7 percent in the prior year. Operating income was 18.6 percent of net revenues in the current year third quarter.

For the nine-month period, current year operating income was 16.8 percent of net revenues. The gross margin rate for the current year fourth quarter is expected to decline between 340 and 380 basis points from last year’s fourth quarter.

Vera Bradley is based in Indiana. Robert Wallstrom, Chief Executive Officer, stated, “While third quarter sales and earnings results were in line with our expectations, we are lowering our fourth quarter outlook. We are working diligently to make improvements in our organization that will enable us to stabilize the business and generate more consistent sales and earnings growth over the long term.”