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What: Shares of handbag maker Vera Bradley
So what: The company's fourth-quarter results were solid. Profits jumped 41% to $0.50, while sales increased by 23% to $134.5 million. Same-store sales echoed this growth by rising 9.3%. It was Vera Bradley's cautious first-quarter forecast of $0.27-$0.29 in EPS and $115 million-$117 million in sales that has investors unhappy. Wall Street had been expecting $0.32 in EPS on sales of $117 million.
Now what: This one actually has me stumped. I can't tell if Vera Bradley is just being cautious, or if there really is a growth problem with the company. If you look at other branded merchandise recently, it's on fire. Michael Kors
Craving more input? Start by adding Vera Bradley to your free and personalized watchlist so you can keep up on the latest news with the company.
Fool contributor Sean Williams has no material interest in any companies mentioned in this article. You can follow him on CAPS under the screen name TMFUltraLong, track every pick he makes under the screen name TrackUltraLong, and check him out on Twitter, where he goes by the handle @TMFUltraLong.
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