Vera Bradley, Inc. (NASDAQ:VRA) Earnings Expectations

Vera Bradley, Inc. (NASDAQ:VRA)

Vera Bradley, Inc. (NASDAQ:VRA)

Vera Bradley, Inc. (NASDAQ:VRA) stock continues to trade higher on high volume, ahead of its earnings call for the quarter ended April 29, 2017. Analysts expect the company to post earnings of $0.06 a share compared to earnings of $0.13 a share posted for the same period last year. For the current year, analysts expect the company to post full-year earnings of $0.43 a share.

CID Resources Licensing Agreement

The designer of women’s handbags, accessories, and luggage and travel items goes into earnings call fresh from signing a licensing agreement with CID resources. The agreement is for apparel and coordinating accessories for female healthcare professionals.

Under the terms of the deal, all licensed products are to be sold in appropriate distribution channels that include Vera Bradley, Inc. (NASDAQ:VRA) stores as well as other specialty and chain stores across the country. The company is currently working with a number of licensing partners as it continues to work on the final product designs.

Chief Executive Officer, Rob Wallstrom, remains confident of the company generating substantial value from the deal given that they are entering a U.S. market that is estimated to be worth $1.8 billion.

“We are delighted that we will be able to offer beautiful apparel and accessories solutions not only to these existing customers but to introduce Vera Bradley to thousands of other medical professionals as well. We are thrilled to inject our version of functionality, color, and especially fun into this important product category,” said Mr. Wallstrom.

However, the licensing agreement will not have any material impact on Vera Bradley, Inc. (NASDAQ:VRA)’s financial performance for FY 2017.

Healthcare Sector Opportunities

According to the executive, the signing of the agreement is part of a plan that seeks to provide women with a variety of apparel solutions. Launched in 2018, the healthcare professional collection has experienced huge success thanks to a number of licensing agreements that Vera Bradley, Inc. (NASDAQ:VRA) has signed. Some of the company’s licensing partners include McGee Group for readers and sunglasses, Fox Chapel Publishing, Incipio and Mainstream Swimsuits, Inc. for swimwear and cover-ups.

Vera Bradley, Inc. (NASDAQ:VRA) fine run in the market continued in Tuesday trading session. The stock added 3.03% in market value to end the day at $8.50 a share. It now awaits to be seen if the company will post stellar quarterly earnings to push the stock above the current trading range of between $8.23 and $8.52 a share.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

About the author: Monica Gray has an undergraduate degree in Accounting and an MBA – earned with Honors. She has six years of experience in the financial markets and has been a securities analyst for the past two years.

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Monica has an undergraduate degree in Accounting and an MBA she earned - with Honors. She has six years of experience in the financial markets and has been an analyst for the past two years.

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