THE BUZZ The fall IPO calendar is filling up, but most of the big names are still waiting on the sidelines. One name on deck for this month should ring a bell with many investors, however. Or, at least, with their wives. Vera Bradley has been around for 28 years with its brightly patterned, modestly priced handbags displayed at specialty and gift shops around the country. In the last five years, however, the former garage startup has taken steps to build a Coach (COH)-like empire. The company has taken charge of its destiny with its own sales force, e-commerce site and retail chain. So far, results have been impressive. Sales have more than doubled since 2005, and its new retail business boasted same-store sales growth of 36% last year. This has emboldened the company to lay out a fairly aggressive growth plan even in a still-soft economy. There are some signs of caution from the IPO, however. The proceeds are all going to insiders — not unusual in the recent IPO market, but not a vote of confidence in the future. The underwriting team does not include Wall Street's major banks, which can also indicate a lack of enthusiasm. THE COMPANY Vera Bradley was founded in 1982 by Barbara Bradley Baekgaard and Patricia Miller, who remain on the management team, to address a desire for stylish luggage for women. For most of its history, it sold indirectly through retailers, who number about 3,300 today. In 2005, the company rethought its strategy and started making major changes. In 2006, it launched its e-commerce site to sell its products directly. The following year, it started opening its own retail stores, which numbered 31 as of July 2010. The firm also started taking its formerly independent sales force in-house, and began opening outlet stores. Technically, the present company was founded just in June as a holding company for the old Vera Bradley Designs. The product line has also expanded considerably from its origins. Currently, handbags provide just over half of sales. About a third of revenue comes from "accessories," which includes many purse-related items like wallets and cosmetics bags, but also such goods as aprons, flip-flops and placemats. The company also sells sunglasses, office supplies, various other kinds of bags and suitcases, and even a few men's accessories.
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