Why Shares of Vera Bradley Slumped Today

Shares of Vera Bradley (NASDAQ: VRA) slumped on Wednesday after the company reported its second-quarter results. Vera Bradley beat analyst estimates across the board, and the stock initially jumped when the market opened. But that gain quickly turned into a loss, possibly due to management changes announced during the conference call and a lackluster update on the company's turnaround progress. At 3:30 p.m. EDT, the stock was down about 10%.

Vera Bradley reported second-quarter revenue of $112.4 million, down 5.7% year over year, but about $0.7 million higher than the average analyst estimate. Direct revenue rose 2.4% year over year, to $89.3 million.

Comparable-store sales slumped 4% and comparable e-commerce sales slumped 4.9%, but those declines were more than offset by new stores. Indirect revenue dropped 27.9% year over year, to $23.1 million, driven by a reduction of specialty accounts.

Source: Fool.com