Vera Bradley, Inc. (Nasdaq: VRA) on Wednesday delivered disappointing fiscal third-quarter results, while shares dropped 11.1% to $9.05.

Vera Bradley reported net income of USD 4.2 Million, or 12 cents a share, however, net income still fell short of analysts' expectations of 16 cents a share. The Company brought in revenue of USD 97.7 Million, again missing analyst expectations of USD 101.7 Million. Revenue is also down from USD 114.1 Million in the year-earlier quarter.

The designer company’s comparable-store sales decreased 16.5% for the quarter, reflecting a 13.1% decrease in comparable-store sales and a 24.8% decrease in e-commerce sales. Results are partially offset by new store growth.

Looking forward, Vera Bradley said that it expects net revenue of USD 114 Million to USD 119 Million for the fourth quarter. However, Analysts were expecting revenue of USD 114 Million.

The Company’s’ forecasts are also down from USD 132 Million a year ago. Vera Bradley attributes the surprising decline to reduced clearance, CEO Robert Wallstrom stated, “As we dramatically adjusted the level of clearance on verabradley.com and in our full-line stores, we expected that sales performance this year could be a bit inconsistent.”

"Third-quarter earnings were modestly below our expectations, primarily due to revenues at the low end of our guidance and a gross margin rate that was slightly below our guidance," Wallstrom said in a statement, he continued to say  "Higher-than-expected shipping costs offset some of our margin expansion, which brought our overall margin rate modestly under guidance. SG&A (Selling, General, and Administrative expenses were in line with expectations."