Vera Bradley, Inc. (NASDAQ: VRA) reported Q1 EPS of $0.16, $0.03 better than the analyst estimate of $0.13. Revenue for the quarter came in at $113.5 million versus the consensus estimate of $118.41 million.

obert Wallstrom, Chief Executive Officer, noted, "While our first quarter revenues were modestly below our expectations, we were able to post earnings per share above our guidance due to better than expected gross margin and expense performance."

"However, we continue to face a difficult environment, one that is proving much more challenging than we anticipated just two short months ago," Wallstrom continued.

"Direct segment revenues are weaker than we expected," Wallstrom also noted. "Sales from existing customers have been relatively stable, but our traditional patterns and products simply are not attracting enough new customers to our brand, and overall traffic is down substantially. In our Indirect segment, while orders from our major accounts are up, orders from our specialty gift channel retailers are down significantly on a year-over-year basis. Until we can make meaningful changes to our product offering and marketing initiatives, we don't expect these sales trends to substantially improve. As a result, we are lowering our revenue and earnings per share projections for the fiscal year.

"As we have noted, this will be an important year of transition and transformation for Vera Bradley. We believe that the product, distribution, and marketing initiatives we previously outlined as part of our long-term strategic plan are absolutely the right ones for the future. While the short-term will remain challenging, I am pleased with the progress we are making against these key elements of our five-year plan. Importantly, we have assembled a team of talented and seasoned retail executives – both from within the organization and new to the Company – that will help us achieve our long-term goals."

Vera Bradley, Inc. sees Q2 2015 EPS of $0.18-$0.20, versus the consensus of $0.3. Vera Bradley, Inc. sees Q2 2015 revenue of $113-120 million, versus the consensus of $127.5 million.

Vera Bradley, Inc. sees FY2015 EPS of $1.00-$1.10, versus the consensus of $1.26. Vera Bradley, Inc. sees FY2015 revenue of $510-530 million, versus the consensus of $553.7 million.

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