Vera Bradley (NASDAQ:VRA) shares are down today after the company reported earnings late yesterday. Net income fell by more than 25% to $9.2 million, or $0.23 per share. Revenue did rise by 5% to $123 million. Despite the lower earnings, they exceed analysts’ estimates for $0.21 per share and revenue of $121 million.
Online sales and new store openings helped boost revenue. Sales at established stores rose slightly by less than 1% and the company cited a “challenging retail environment” for why they remain cautious about orders.
Vera Bradley also revised its guidance lower in the report. The company now expects revenue to be $570 million to $575 million for the year, down from its earlier guidance in March of $585 million to $590 million. EPS is now expected to be between $1.74 to $1.78, down from $1.83 to $1.88.
Vera Bradley’s stock was downgraded following the dip in earnings by Robert W. Baird. Baird cut their rating of the stock to neutral from outperform. No price target was given.
The company also announced that CEO Mike Ray, who has been in the position since 2007, informed the board he plans to retire. In a statement, Ray said it was “the right time” for the company to find a new CEO. He will stay on until a successor is named by the board.
Shares of Vera Bradley are down more than 10% on the lower earnings and news of the CEO’s retirement. The stock is nearing its 52 week low of $19.26 and is currently trading at $20.00.