Vera Bradley shares climb on expectation beating earnings and licensing agreements

 
Billy Bambrough
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Vera Bradley Leather And Faux Leather Launch Event In New York City
The strong dollar hasn't caused a problem for this luxury brand just yet (Source: Getty)

US luxury handbag and accessories maker Vera Bradley has posted a solid performance, despite the strong dollar causing problems for other high-end retailers.

Shares climbed by more than three per cent following the US market open in New York, though are down some five per cent in the year to date.

Net revenues totalled $119.2m (£89.8m) for the second quarter ended 30 July, compared to $120.7m for the same period last year.

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Net income came in at $5.1m, or 14 cents per share for its fiscal second quarter, compared with income of $5.7m last year.

The earnings were ahead of average expectations, with a FactSet poll of analysts predicting net income of 13 cents per share.

Vera Bradley expects revenue for fiscal 2017 to come in between $510m to $515m, compared with $502.6m in revenue for the year earlier.

The Indiana-based company also announced it has entered into two licensing agreements for stationery and publishing.

One with Lifeguard Press for signature stationery and home and office organisational products and another with Fox Chapel Publishing for colouring activity and design books and gift sets.

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Vera Bradley chief executive Rob Wallstrom said:

One of our main objectives this year was to explore appropriate licensing opportunities to strengthen our brand, expand our reach to even more distribution points and customers, and establish a solid foundation for international growth. Entering into these two arrangements is a great start.

Sue Fuller, chief merchandising officer for Vera Bradley, said:

We have been working diligently over the last few months to identify the right licensing partners in our focus businesses of home, fashion, and beauty. We are very fortunate that there is enormous interest in Vera Bradley in each of these areas and that we are able to be selective and develop relationships with the expert partners that are the best fits for our Company. We expect to announce additional licensing agreements in the future.

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