Vera Bradley Plans $175M IPO

New York (GaeaTimes.com) - Eminent handbag designer and maker Vera Bradley has planned to sale the share of company worth rupees $175 million. They want to offer $175 million in initial public offering. The main cause of the decision is to make strong capital growth of the company in fiscal year 2011 but the numbers of shares and price of each share are not fixed now. They have applied to enlist for stock in NASDAQ Global Market.

The Fort Wayne, Indiana Company Vera Bradley has sold the bags and accessories worth rupees of $289 million in the last year. Not only the handbags but luggage and accessories are also the main concern of Vera Bradley. The owner of 29 stores in USA, Vera Bradley is an internationally famous handbag and accessories designer. Their products can be found in more than 3,300 stores in the USA. It is expected that with this stock option 300 stores can be full priced. Vera Bradley said that in the month of May there was record number of visitors at spring outlet sale at Memorial Coliseum. It was around 63,000. People came from 46 states including Germany, Australia and Netherlands. Notebook cases, iPad cases, laptop cases reflect their creativity in design.

For last 28 years Vera Bradley was able to attract a broad range of customers by their creations. Their net revenue was $120.7 million in the fiscal year 2005 but it has been increased to $288.9 million in the fiscal year 2009. It shows the compound annual growth rate is 23.9%. The company is expecting that in 2011 each full price store can produce the net revenue of $1.1 million. Continuous change of design and fresh stocks keep people engage to come in the outlets, the company said.