High end designers like Mulberry and Prada aren’t the only ones thriving in these tough financial times. More modest accessories label Vera Bradley is also enjoying its share of success, with a big 32% sales increase in the third quarter of the financial year. Sales amounted to $121.1 million, compared with $91.6 million at the same time in 2010.
These sales figures helped the company’s net income grow by 45% to $13 million, up from $6 million last year. On the stock exchange its shares rose to 32c, up from 17c in 2010. The results bettered analyst predictions of the shares fetching 28c.
Vera Bradley chief executive officer Michael C. Ray said it was “pleased” with the results. He attributed the success to the brand’s strength, its distinctive portfolio of products, its employees, and of course its loyal customers. Understandably he said he was “optimistic about the long term prospects for Vera Bradley.”
The label expects a modest increase in the fourth quarter of an estimated $125 to $130 million in sales. However Randal Konik, an analyst at Jefferies & Co., was even more positive, suggesting that Vera Bradley could stand to make $130.6 million in the year’s final quarter. He pointed to the way customers have embraced Vera Bradley’s winter prints and new holiday gift ideas as reasons for optimism.
Personally I’ve been really impressed by the more modern bags we’ve seen from Vera Bradley this year. I’m glad the riskier designs have paid dividends for the beloved American label, aren’t you?
