UPDATE: Vera Bradley Posts Downbeat Q4 Results, Issues Weak Outlook

Shares of

tumbled more than 10% in pre-market trading after the company reported weaker-than-expected results for the fiscal fourth quarter and issued a downbeat outlook. The Fort Wayne, Indiana-based company posted quarterly net income from continuing operations of $17.3 million, or $0.43 per share, compared to $19.9 million, or $0.49 per share, in the year-ago quarter. Its revenue slipped to $152.6 million from $156.4 million. However, analysts were expecting earnings of $0.45 per share on revenue of $160.3 million. Comparable sales slipped 14.4% in the quarter. Direct segment revenue gained 0.1% to $107.7 million, while indirect segment revenue slipped 8.0% to $44.9 million in the quarter. Gross profit for the quarter declined to $80.0 million, or 52.4% of net revenues, versus $82.6 million, or 52.8% of net revenues. Operating income dropped to $25.9 million from $31.3 million. During the quarter, Vera Bradley repurchased around $9.4 million of common stock under its $40 million share repurchase plan. As of January 31, 2015, the company had $112.3 million in cash and cash equivalents, versus $59.2 million at last fiscal year end. "Even though our fourth quarter revenues were challenging and fell below our expectations, we were able to deliver earnings per share within our guidance," Robert Wallstrom, Chief Executive Officer said. "Fiscal 2015 was certainly a year of transition for Vera Bradley." Vera Bradley projects Q1 earnings of $0.00 to $0.03 per share on revenue of $103 million to $109 million. Analysts had expected earnings of $0.16 per share on revenue of $122 million. For fiscal 2016, the company expects earnings of $0.82 to $0.92 per share on sales of $510 million to $525 million. Analysts had projected earnings of $1.19 per share on revenue of $567 million. Vera Bradley shares dipped 10.61% to $16.00 in pre-market trading.