Vera Bradley Announces Third Quarter Fiscal Year 2026 Results
MWN-AI** Summary
Vera Bradley, Inc. (Nasdaq: VRA) reported its financial results for the third quarter of Fiscal Year 2026, revealing a decline in net revenues to $62.3 million, down from $70.5 million year-over-year. The company's net loss from continuing operations was $12.4 million, or $0.44 per diluted share, influenced significantly by a $5.9 million inventory write-down and a $4 million media credit write-off due to a strategic pivot towards digital marketing. Despite these challenges, Executive Chairman Ian Bickley highlighted progress under their "Project Sunshine" transformation initiative, aimed at enhancing brand focus and operational effectiveness.
Vera Bradley's Direct segment revenues dipped to $49.7 million, a 5.3% decline from the previous year. However, the company observed positive trends in brand channel sales from back-to-school through Black Friday. The Indirect segment experienced a more severe revenue drop of 30.2%, primarily stemming from reduced orders in specialty and key accounts.
Consolidated gross profit for the quarter was $26.2 million, down from $38.4 million the prior year, reflecting a gross profit margin of 42.1%. Continued focus on cost management resulted in a decrease in SG&A expenses to $38.7 million, or 62.1% of net revenues.
The company's balance sheet showed cash and cash equivalents of $10.7 million, down from $12.3 million year-over-year, with total inventory reduced to $82.9 million.
On a non-GAAP basis, Vera Bradley's third-quarter net loss was $8.3 million, or $0.30 per diluted share, an improvement from a net loss of $13.3 million in the prior year. Looking ahead, the management's focus remains on enhancing profitability and cash generation to foster sustainable growth in the forthcoming periods.
MWN-AI** Analysis
Vera Bradley, Inc.’s recent third-quarter earnings report for fiscal year 2026 reveals a mixed operational picture amid strategic transformations. Revenue decreased to $62.3 million from $70.5 million in the prior year, reflecting a significant challenge in restoring pre-pandemic sales levels. Despite these declines, there are signs of stabilization, particularly highlighted by positive comparable sales during the back-to-school and holiday shopping seasons.
The company’s “Project Sunshine” initiative aims to enhance brand focus and optimize the digital sales ecosystem, responding to changing consumer behavior. While progress is evident, the reported net loss of $12.4 million, largely due to a $5.9 million inventory write-down and write-offs, signals ongoing financial pressures.
Investors should note that the company's direct segment revenue, which decreased by 5.3%, indicates that consumer traffic remains a concern, particularly within outlet channels. Nonetheless, the reopening of stores and the return of popular product lines like the Original 100 Bag provide a glimpse of potential recovery.
From a financial health perspective, while cash on hand declined, total inventory levels have reduced, suggesting better inventory management practices. The current debt from the asset-based lending facility also warrants attention as it reflects increased reliance on borrowed capital.
In terms of a market strategy, continued focus on digital marketing and product line simplification may yield positive outcomes in capturing consumer demand. Investors might consider a cautious buy on the stock, keeping in mind the focus on long-term strategic initiatives, particularly as the company transitions towards a more robust operational model.
Overall, while challenges persist, the operational direction and upcoming seasonal strategies may create opportunities for recovery and potential upside for long-term investors.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
FORT WAYNE, Ind., Dec. 11, 2025 (GLOBE NEWSWIRE) -- Vera Bradley, Inc. (Nasdaq: VRA) (the “Company”) today announced its financial results for the third quarter and nine month period ended November 1, 2025.
Third Quarter Comments
“Our third quarter results demonstrate progress in our comprehensive transformation strategy, which we have now branded as Project Sunshine, our five-pillar initiative anchored on reclaiming Vera Bradley’s joyful optimism while fueling operational excellence. Project Sunshine encompasses sharpening our brand focus, resetting our go-to-market approach, rewiring our digital ecosystem, implementing Outlet 2.0, and reimagining how we work as an organization,” said Ian Bickley, Executive Chairman of Vera Bradley.
“With third quarter revenues of $62.3 million, our Direct Segments registered sequential improvement across key metrics including positive comparable Brand channel sales for five months from back-to-school through Black Friday weekend. The successful return of iconic styles like the Original 100 Bag, the Vera and Glenna Totes also give us confidence we’re moving Vera Bradley in the right direction. While significant work remains, these early wins and our continued focus on profitability and cash generation position us well for sustainable growth,” concluded Bickley.
Summary of Financial Performance for the Third Quarter
Consolidated net revenues from continuing operations totaled $62.3 million compared to $70.5 million in the prior year third quarter ended November 2, 2024.
For the current year third quarter, Vera Bradley, Inc.'s net loss from continuing operations totaled ($12.4) million, or ($0.44) per diluted share. GAAP results from continuing operations for the quarter were significantly affected by a $5.9 million inventory write-down related to the Brands’ strategic product shift toward cotton and heritage prints, along with a $4 million write-off of television media credits which were acquired to support the Company’s Project Restoration efforts and won’t be fully utilized with the focus on digital and performance marketing. These items had a ($0.35) per diluted share impact on our results from continuing operations. Additionally, we incurred non-GAAP pre-tax charges comprised of $0.6 million for severance, $0.4 million for transformation initiatives, $0.3 million for consulting and professional fees associated with strategic initiatives, ($0.2) million for a true up of PO cancellation fees, and total tax impact of $3.0 million adjusted to reflect the tax benefit calculated using a 26% statutory rate applied to the non-GAAP pre-tax loss. The net-of-tax impact totaled $4.1 million. On a non-GAAP basis, Vera Bradley, Inc.’s third quarter net loss from continuing operations totaled ($8.3) million, or ($0.30) per diluted share.
For the prior year third quarter, Vera Bradley, Inc.’s net loss from continuing operations totaled ($13.3) million, or ($0.47) per diluted share. These results included pre-tax charges comprised of $2.1 million of property, plant & equipment (“PPE”) impairment charges, $0.7 million for Project Restoration initiatives, $0.2 million for severance, $0.2 million for consulting and professional fees associated with strategic initiatives, and total tax impact of $6.5 million adjusted to reflect the tax benefit calculated using a 26% statutory rate applied to the non-GAAP pre-tax loss. The net-of-tax impact totaled $9.7 million. On a non-GAAP basis, Vera Bradley, Inc.’s third quarter net loss from continuing operations totaled ($3.7) million, or ($0.13) per diluted share.
Summary of Financial Performance for the Nine Months
Consolidated net revenues from continuing operations totaled $184.8 million compared to $232.4 million in the prior year third quarter ended November 2, 2024.
For the current year nine months, Vera Bradley, Inc.'s net loss from continuing operations totaled ($35.3) million, or ($1.26) per diluted share. GAAP results from the nine months were significantly impacted by the previously mentioned $5.9 million inventory write-down and $4 million write-off of media credits. Additionally, we incurred non-GAAP pre-tax charges comprised of $3.9 million for severance, $1.7 million for consulting and professional fees associated with strategic initiatives and shareholder matters, $1.1 million for professional fees associated with the sale of Pura Vida, $1.0 million for PPE impairment charges, $0.7 million for transformation initiatives, $0.6 million for PO cancellation fees, $0.3 million for inventory write-offs associated with the sale of Pura Vida, and a total tax impact of $7.1 million adjusted to reflect the tax benefit calculated using a 26% statutory rate applied to the non-GAAP pre-tax loss. The net-of-tax impact totaled $16.4 million. On a non-GAAP basis, Vera Bradley, Inc.’s current year net loss from continuing operations for the nine months totaled ($18.9) million, or ($0.67) per diluted share.
For the prior year nine months, Vera Bradley, Inc.’s net loss from continuing operations totaled ($13.4) million, or ($0.46) per diluted share. These results included pre-tax charges comprised of $2.1 million for PPE impairment charges, $1.0 million for severance, $1.0 million for Project Restoration initiatives, $0.7 million for one-time vendor charges, $0.4 million for consulting and professional fees associated with strategic initiatives, and a total tax impact of $0.5 million adjusted to reflect the tax benefit calculated using a 26% statutory rate applied to the non-GAAP pre-tax loss. The net-of-tax impact totaled $5.7 million. On a non-GAAP basis, Vera Bradley, Inc.’s prior year net loss from continuing operations for the nine months totaled ($7.7) million, or ($0.26) per diluted share.
Third Quarter Details
Vera Bradley Direct segment revenues totaled $49.7 million, a 5.3% decrease from $52.5 million in the prior year third quarter. Comparable sales declined 5.8% in the third quarter, primarily driven by traffic and conversion declines in our outlet channels. This represents the Company’s third quarter of sequential comparable sales improvement. During the third quarter, the Company closed one underperforming full-line store.
Vera Bradley Indirect segment revenues totaled $12.6 million, a 30.2% decrease from $18.0 million in the prior year third quarter. The decrease was primarily related to a decline in specialty and key account orders, which were partially offset by increased liquidation sales.
Gross profit totaled $26.2 million, or 42.1% of net revenues, compared to $38.4 million, or 54.5% of net revenues, in the prior year. On a non-GAAP basis, current year gross profit totaled $26.0 million, or 41.7% of net revenues. The year-over-year decrease in consolidated gross profit as a percentage of net revenues was primarily driven by the previously mentioned inventory write-down as well as additional duty expenses, partially offset by pricing improvements.
Selling, general, and administrative (“SG&A”) expense totaled $38.7 million, or 62.1% of net revenues, compared to $46.7 million, or 66.3% of net revenues, in the prior year. On a non-GAAP basis, current year consolidated SG&A expense totaled $37.4 million, or 60.0% of net revenues, compared to $43.6 million, or 61.8% of net revenues, in the prior year. The decrease in non-GAAP SG&A expense primarily due to lower compensation expenses and other cost reduction initiatives which were partially offset by the previously mentioned media credit write-off.
The Company’s third quarter operating loss from continuing operations totaled ($12.2) million, or (19.6%) of net revenues, compared to ($8.2) million, or (11.6%) of net revenues, in the prior year third quarter. On a non-GAAP basis, the Company’s current year operating loss from continuing operations totaled ($11.1) million, or (17.8%) of net revenues, compared to ($5.0) million, or (7.1%) of net revenues, in the prior year.
By segment:
- Vera Bradley Direct operating income was $2.7 million, or 5.4% of Direct net revenues, compared to $2.1 million, or 4.0% of Direct net revenues, in the prior year. On a non-GAAP basis, Direct operating income totaled $2.5 million, or 5.1% of Direct revenues, compared to $4.5 million, or 8.6% of Direct net revenues, in the prior year.
- Vera Bradley Indirect operating income was $0.9 million, or 7.1% of Indirect net revenues, compared to $6.1 million, or 33.7% of Indirect net revenues, in the prior year. On a non-GAAP basis, Indirect operating income totaled $0.9 million, or 6.8% of Indirect net revenues, compared to $6.6 million, or 36.7% of Indirect net revenues, in the prior year.
Details for the Nine Months
Vera Bradley Direct segment revenues for the current year nine month period totaled $153.3 million, a 15.4% decrease from $181.1 million in the prior year nine month period. Comparable sales declined 16.1% for the nine months, driven by traffic and conversion declines within the channels. During the current year, the Company opened two full-line stores and closed 10 underperforming full-line stores and one underperforming outlet store.
Vera Bradley Indirect segment revenues totaled $31.5 million, a 38.6% decrease from $51.3 million in the prior year third quarter. The decrease was primarily related to a decline in specialty and key account orders.
Consolidated gross profit for the nine months totaled $84.5 million, or 45.7% of net revenues, compared to $119.2 million, or 51.3% of net revenues, in the prior year. On a non-GAAP basis, current year gross profit totaled $85.9 million, or 46.5% of net revenues, compared to $120.0 million, or 51.6% of net revenues in the prior year. The decrease in consolidated gross profit as a percentage of net revenues for the nine months resulted from the previously mentioned inventory write-down as well as additional duty expenses, partially offset by pricing improvements.
For the nine months, consolidated SG&A expense totaled $119.9 million, or 64.9% of net revenues, compared to $136.2 million, or 58.6% of net revenues, in the prior year. On a non-GAAP basis, current year consolidated SG&A expense totaled $112.0 million, or 60.6% of net revenues, compared to $131.9 million, or 56.7% of net revenues, in the prior year. The decrease in non-GAAP SG&A expense primarily due to lower compensation expenses and other cost reduction initiatives which were partially offset by the previously mentioned media credit write-off.
For the nine months, the Company’s operating loss from continuing operations totaled ($34.6) million, or (18.7%) of net revenues, compared to ($16.4) million, or (7.0%) of net revenues, in the prior year nine month period. On a non-GAAP basis, the Company’s current year operating loss from continuing operations totaled ($25.3) million, or (13.7%) of net revenues, compared to ($11.2) million, or (4.8%) of net revenues, in the prior year.
By segment:
- Vera Bradley Direct operating income was $6.5 million, or 4.2% of Direct net revenues, compared to $19.5 million, or 10.8% of Direct net revenues, in the prior year. On a non-GAAP basis, Direct operating income totaled $9.0 million, or 5.8% of Direct revenues, compared to $23.1 million, or 12.8% of Direct net revenues, in the prior year.
- Vera Bradley Indirect operating income was $5.1 million, or 16.1% of Indirect net revenues, compared to $14.6 million, or 28.5% of Indirect net revenues, in the prior year. On a non-GAAP basis, Indirect operating income totaled $5.3 million, or 16.7% of Indirect net revenues, compared to $15.4 million, or 30.0% of Indirect net revenues, in the prior year.
Balance Sheet
Cash and cash equivalents as of November 1, 2025 totaled $10.7 million compared to $12.3 million at the end of last year’s third quarter. The Company had borrowings of $10.0 million on its $75.0 million asset-based lending (“ABL”) facility at quarter end. The Company had no borrowings on its ABL facility at the end of last year’s third quarter.
Total quarter-end inventory was $82.9 million, compared to $109.6 million at the end of last year’s third quarter.
Net capital spending for the nine month period totaled $3.1 million compared to $6.1 million in the prior year.
Disclosure Regarding Non-GAAP Measures
Non-GAAP Numbers
The current year non-GAAP third quarter and nine month income statement numbers referenced below exclude the previously outlined charges for severance, consulting and professional fees associated with strategic initiatives and other matters, professional fees associated with the sale of Pura Vida, PPE impairment charges, transformation initiatives, PO cancellation fees, inventory write-offs associated with the sale of Pura Vida, and the income tax effect related to these items. The prior year non-GAAP third quarter and nine month income statement numbers referenced below exclude the previously outlined charges for PPE impairment charges, severance, Project Restoration initiatives, one-time vendor charges, consulting and professional fees, and the income tax effect related to these items.
The Company's management does not, nor does it suggest that investors should, consider the supplemental non-GAAP financial measures in isolation from, or as a substitute for, financial information prepared in accordance with accounting principles generally accepted in the United States (“GAAP”). Further, the non-GAAP measures utilized by the Company may be unique to the Company, as they may be different from non-GAAP measures used by other companies.
The Company believes that the non-GAAP measures presented in this earnings release, including cash usage; gross profit; selling, general, and administrative expenses; operating loss from continuing operations; net loss income from continuing operations; and diluted net loss per share from continuing operations, along with the associated percentages of net revenues, are helpful to investors because they allow for a more direct comparison of the Company’s year-over-year performance and are consistent with management’s evaluation of business performance. A reconciliation of the non-GAAP measures to the most directly comparable GAAP measures can be found in the Company’s supplemental schedules included in this earnings release.
Consistent with SEC regulations, the Company has not provided a reconciliation of forward-looking non-GAAP financial measures to the most directly comparable GAAP financial measures in reliance on the "unreasonable efforts" exception set forth in the applicable regulations, because there is substantial uncertainty associated with predicting any future adjustments the Company may make to its GAAP financial measures in calculating non-GAAP financial measures.
Call Information
A conference call to discuss results for the third quarter is scheduled for today, Thursday, December 11, 2025, at 8:30 a.m. Eastern Time. A broadcast of the call will be available via Vera Bradley’s Investor Relations section of its website, www.verabradley.com . Alternatively, interested parties may dial into the call at (877) 407-0779, and enter the access code 13756556. A replay will be available shortly after the call and through December 25, 2025. To access the recording, listeners should dial (844) 512-2921, and enter the access code 13756556.
About Vera Bradley, Inc.
Vera Bradley, based in Fort Wayne, Indiana, is a leading designer of women’s handbags, luggage and other travel items, fashion and home accessories, and unique gifts. Founded in 1982 by friends Barbara Bradley Baekgaard and Patricia R. Miller, the brand is known for its innovative designs, iconic patterns, and brilliant colors that inspire and connect women unlike any other brand in the global marketplace.
The Company has two reportable segments: Vera Bradley Direct (“VB Direct”) and Vera Bradley Indirect (“VB Indirect”). The VB Direct business consists of sales of Vera Bradley products through Vera Bradley Full-Line and Outlet stores in the United States; Vera Bradley’s websites, www.verabradley.com , outlet.verabradley.com , and international.verabradley.com ; and the Vera Bradley annual outlet sale in Fort Wayne, Indiana. The VB Indirect business consists of sales of Vera Bradley products to approximately 1,000 specialty retail locations throughout the United States, as well as select department stores, national accounts, third party e-commerce sites, and third-party inventory liquidators, and royalties recognized through licensing agreements related to the Vera Bradley brand.
Website Information
We routinely post important information for investors on our website www.verabradley.com in the "Investor Relations" section. We intend to use this webpage as a means of disclosing material, non-public information and for complying with our disclosure obligations under Regulation FD. Accordingly, investors should monitor the Investor Relations section of our website, in addition to following our press releases, SEC filings, public conference calls, presentations and webcasts. The information contained on, or that may be accessed through, our webpage is not incorporated by reference into, and is not a part of, this document.
Investors and other interested parties may also access the Company’s most recent Corporate Responsibility and Sustainability Report outlining its ESG (Environmental, Social, and Governance) initiatives at https://verabradley.com/pages/corporate-responsibility .
Vera Bradley Safe Harbor Statement
Certain statements in this release are "forward-looking statements" made pursuant to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements reflect the Company's current expectations or beliefs concerning future events and are subject to various risks and uncertainties that may cause actual results to differ materially from those that we expected, including: possible adverse changes in general economic conditions and their impact on consumer confidence and spending; possible inability to predict and respond in a timely manner to changes in consumer demand; possible loss of key management or design associates or inability to attract and retain the talent required for our business; possible inability to maintain and enhance our brands; possible inability to successfully implement the Company’s long-term strategic plan; possible inability to successfully open new stores, close targeted stores, and/or operate current stores as planned; incremental tariffs or adverse changes in the cost of raw materials and labor used to manufacture our products; possible adverse effects resulting from a significant disruption in our distribution facilities; or business disruption caused by pandemics or other macro factors. More information on potential factors that could affect the Company’s financial results is included from time to time in the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of the Company’s public reports filed with the SEC, including the Company’s Form 10-K for the fiscal year ended February 1, 2025. We undertake no obligation to publicly update or revise any forward-looking statement. Financial schedules are attached to this release.
| Vera Bradley, Inc. Condensed Consolidated Balance Sheets (in thousands) (unaudited) | ||||||||||||
| November 1, 2025 | February 1, 2025 | November 2, 2024 | ||||||||||
| Assets | ||||||||||||
| Current assets: | ||||||||||||
| Cash and cash equivalents | $ | 10,729 | $ | 28,628 | $ | 12,318 | ||||||
| Accounts receivable, net | 18,966 | 13,797 | 22,653 | |||||||||
| Inventories | 82,938 | 91,430 | 109,590 | |||||||||
| Short-term contingent consideration | 2,013 | — | — | |||||||||
| Income taxes receivable | 392 | 584 | 3,453 | |||||||||
| Prepaid expenses and other current assets | 7,298 | 8,072 | 10,265 | |||||||||
| Current assets of discontinued operations | — | 22,361 | 26,506 | |||||||||
| Total current assets | 122,336 | 164,872 | 184,785 | |||||||||
| Operating right-of-use assets | 68,360 | 74,841 | 79,287 | |||||||||
| Property, plant, and equipment, net | 47,876 | 52,555 | 52,572 | |||||||||
| Long-term contingent consideration | 539 | — | — | |||||||||
| Deferred income taxes | — | — | 6,642 | |||||||||
| Other assets | 4,573 | 9,048 | 9,867 | |||||||||
| Long-term assets of discontinued operations | — | 5,374 | 25,822 | |||||||||
| Total assets | $ | 243,684 | $ | 306,690 | $ | 358,975 | ||||||
| Liabilities and Shareholders’ Equity | ||||||||||||
| Current liabilities: | ||||||||||||
| Accounts payable | $ | 14,678 | $ | 17,198 | $ | 18,432 | ||||||
| Accrued employment costs | 6,007 | 6,527 | 6,223 | |||||||||
| Short-term operating lease liabilities | 19,456 | 19,024 | 20,216 | |||||||||
| Other accrued liabilities | 8,476 | 9,221 | 9,745 | |||||||||
| Income taxes payable | — | — | 210 | |||||||||
| Current liabilities of discontinued operations | — | 6,023 | 4,940 | |||||||||
| Total current liabilities | 48,617 | 57,993 | 59,766 | |||||||||
| Long-term debt | 10,000 | — | — | |||||||||
| Long-term operating lease liabilities | 56,957 | 66,307 | 70,351 | |||||||||
| Other long-term liabilities | 47 | 47 | 46 | |||||||||
| Long-term liabilities of discontinued operations | — | 3,388 | 3,614 | |||||||||
| Total liabilities | 115,621 | 127,735 | 133,777 | |||||||||
| Shareholders’ equity: | ||||||||||||
| Additional paid-in-capital | 115,211 | 115,515 | 114,167 | |||||||||
| Retained earnings | 169,782 | 220,279 | 267,252 | |||||||||
| Accumulated other comprehensive loss | (110 | ) | (19 | ) | 14 | |||||||
| Treasury stock | (156,820 | ) | (156,820 | ) | (156,235 | ) | ||||||
| Total shareholders’ equity | 128,063 | 178,955 | 225,198 | |||||||||
| Total liabilities and shareholders’ equity | $ | 243,684 | $ | 306,690 | $ | 358,975 |
| Vera Bradley, Inc. Condensed Consolidated Statements of Operations (in thousands, except per share amounts) (unaudited) | ||||||||||||||||
| Thirteen Weeks Ended | Thirty-Nine Weeks Ended | |||||||||||||||
| November 1, 2025 | November 2, 2024 | November 1, 2025 | November 2, 2024 | |||||||||||||
| Net revenues | $ | 62,253 | $ | 70,483 | $ | 184,763 | $ | 232,434 | ||||||||
| Cost of sales | 36,067 | 32,066 | 100,313 | 113,268 | ||||||||||||
| Gross profit | 26,186 | 38,417 | 84,450 | 119,166 | ||||||||||||
| Selling, general, and administrative expenses | 38,670 | 46,703 | 119,916 | 136,247 | ||||||||||||
| Other income, net | 310 | 133 | 843 | 704 | ||||||||||||
| Operating loss from continuing operations | (12,174 | ) | (8,153 | ) | (34,623 | ) | (16,377 | ) | ||||||||
| Interest (expense) income, net | (135 | ) | 15 | (265 | ) | 704 | ||||||||||
| Loss from continuing operations before income taxes | (12,309 | ) | (8,138 | ) | (34,888 | ) | (15,673 | ) | ||||||||
| Income tax (benefit) expense | 56 | 5,194 | 446 | (2,264 | ) | |||||||||||
| Net loss from continuing operations | $ | (12,365 | ) | $ | (13,332 | ) | $ | (35,334 | ) | $ | (13,409 | ) | ||||
| Income (loss) from discontinued operations, net of income tax | — | 532 | (15,163 | ) | (1,806 | ) | ||||||||||
| Net loss | $ | (12,365 | ) | $ | (12,800 | ) | $ | (50,497 | ) | $ | (15,215 | ) | ||||
| Basic weighted-average shares outstanding | 27,937 | 28,074 | 27,984 | 29,339 | ||||||||||||
| Diluted weighted-average shares outstanding | 27,937 | 28,074 | 27,984 | 29,339 | ||||||||||||
| Basic net loss per share: | ||||||||||||||||
| Continuing operations | $ | (0.44 | ) | $ | (0.47 | ) | $ | (1.26 | ) | $ | (0.46 | ) | ||||
| Discontinued operations | $ | — | $ | 0.01 | $ | (0.54 | ) | $ | (0.06 | ) | ||||||
| Basic net loss per share | $ | (0.44 | ) | $ | (0.46 | ) | $ | (1.80 | ) | $ | (0.52 | ) | ||||
| Diluted net loss per share: | ||||||||||||||||
| Continuing operations | $ | (0.44 | ) | $ | (0.47 | ) | $ | (1.26 | ) | $ | (0.46 | ) | ||||
| Discontinued operations | $ | — | $ | 0.01 | $ | (0.54 | ) | $ | (0.06 | ) | ||||||
| Diluted net loss per share | $ | (0.44 | ) | $ | (0.46 | ) | $ | (1.80 | ) | $ | (0.52 | ) |
| Vera Bradley, Inc. Condensed Consolidated Statements of Cash Flows (in thousands) (unaudited) | ||||||||
| Thirty-Nine Weeks Ended | ||||||||
| November 1, 2025 | November 2, 2024 | |||||||
| Cash flows from operating activities | ||||||||
| Net loss | $ | (50,497 | ) | $ | (15,215 | ) | ||
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
| Depreciation of property, plant, and equipment | 5,930 | 6,210 | ||||||
| Amortization of operating right-of-use assets | 15,198 | 14,850 | ||||||
| Impairment charges | 1,048 | 2,181 | ||||||
| Amortization of intangible assets | — | 1,336 | ||||||
| Provision for doubtful accounts | 128 | 31 | ||||||
| Stock-based compensation | (87 | ) | 2,269 | |||||
| Deferred income taxes | — | (116 | ) | |||||
| Loss on sale of business | 15,163 | — | ||||||
| Other non-cash loss, net | 85 | (2 | ) | |||||
| Changes in assets and liabilities: | ||||||||
| Accounts receivable | (6,008 | ) | (7,182 | ) | ||||
| Inventories | 8,834 | (13,036 | ) | |||||
| Prepaid expenses and other assets | 5,012 | (2,476 | ) | |||||
| Accounts payable | (3,578 | ) | 3,349 | |||||
| Income taxes | 192 | (3,917 | ) | |||||
| Operating lease liabilities, net | (17,554 | ) | (17,468 | ) | ||||
| Accrued and other liabilities | (1,167 | ) | (6,571 | ) | ||||
| Net cash used in operating activities | (27,301 | ) | (35,757 | ) | ||||
| Cash flows from investing activities | ||||||||
| Purchases of property, plant, and equipment | (3,065 | ) | (6,050 | ) | ||||
| Proceeds from sale of business, net of cash disposed | 1,037 | — | ||||||
| Net cash used in investing activities | (2,028 | ) | (6,050 | ) | ||||
| Cash flows from financing activities | ||||||||
| Tax withholdings for equity compensation | (217 | ) | (692 | ) | ||||
| Repurchase of common stock | — | (21,179 | ) | |||||
| Borrowings under asset-based revolving credit agreement | 15,000 | — | ||||||
| Repayment of borrowings under asset-based revolving credit agreement | (5,000 | ) | — | |||||
| Net cash provided by (used in) financing activities | 9,783 | (21,871 | ) | |||||
| Effect of exchange rate changes on cash and cash equivalents | (91 | ) | 86 | |||||
| Net decrease in cash and cash equivalents | $ | (19,637 | ) | $ | (63,592 | ) | ||
| Cash and cash equivalents, beginning of period | 30,366 | 77,303 | ||||||
| Cash and cash equivalents, end of period | $ | 10,729 | $ | 13,711 | ||||
| Vera Bradley, Inc. Third Quarter Fiscal 2026 GAAP to Non-GAAP Reconciliation Thirteen Weeks Ended November 1, 2025 (in thousands, except per share amounts) (unaudited) | |||
| Thirteen Weeks Ended | |||
| Net loss from continuing operations | $ | (12,365 | ) |
| Severance (1) | 609 | ||
| Transformation initiatives (1) | 398 | ||
| Consulting and professional fees (1) | 297 | ||
| PO cancellation fees (2) | (222 | ) | |
| Income tax adjustments (3) | 2,975 | ||
| Net loss from continuing operations - Non-GAAP | (8,308 | ) | |
| Diluted net loss per share from continuing operations - Non-GAAP | $ | (0.30 | ) |
| (1) Recorded in selling, general, and administrative ("SG&A") expenses | |||
| (2) Represents true up of PO cancellation fees and recorded in cost of goods sold | |||
| (3) Adjusted net loss from continuing operations and adjusted diluted EPS are calculated using a statutory tax rate of 26% |
| Thirteen Weeks Ended | |||||||||||||||
| Vera Bradley Direct | Vera Bradley Indirect | Unallocated Corporate Expenses | Total | ||||||||||||
| Operating income (loss) from continuing operations | $ | 2,685 | 883 | $ | (15,742 | ) | $ | (12,174 | ) | ||||||
| Severance | — | — | 609 | 609 | |||||||||||
| Transformation initiatives | 27 | 7 | 364 | 398 | |||||||||||
| Consulting and professional fees | — | — | 297 | 297 | |||||||||||
| PO cancellation fees | (191 | ) | (31 | ) | — | (222 | ) | ||||||||
| Operating income (loss) from continuing operations - Non-GAAP | $ | 2,521 | $ | 859 | $ | (14,472 | ) | $ | (11,092 | ) |
| Vera Bradley, Inc. Third Quarter Fiscal 2025 GAAP to Non-GAAP Reconciliation Thirteen Weeks Ended November 2, 2024 (in thousands, except per share amounts) (unaudited) | |||
| Thirteen Weeks Ended | |||
| Net loss from continuing operations | $ | (13,332 | ) |
| PPE impairment charges (1) | 2,063 | ||
| Project Restoration (1) | 669 | ||
| Severance (1) | 248 | ||
| Consulting and professional fees (1) | 164 | ||
| Income tax adjustments (2) | 6,492 | ||
| Net loss from continuing operations - Non-GAAP | (3,696 | ) | |
| Diluted net loss per share from continuing operations - Non-GAAP | $ | (0.13 | ) |
| (1) Recorded in SG&A expenses | |||
| (2) Adjusted net loss from continuing operations and adjusted diluted EPS are calculated using a statutory tax rate of 26% |
| Thirteen Weeks Ended | |||||||||||||
| Vera Bradley Direct | Vera Bradley Indirect | Unallocated Corporate Expenses | Total | ||||||||||
| Operating income (loss) from continuing operations | $ | 2,104 | 6,068 | $ | (16,325 | ) | $ | (8,153 | ) | ||||
| PPE impairment charges | 2,063 | — | — | 2,063 | |||||||||
| Project Restoration | 147 | 522 | — | 669 | |||||||||
| Severance | 186 | 14 | 48 | 248 | |||||||||
| Consulting and professional fees | — | — | 164 | 164 | |||||||||
| Operating income (loss) from continuing operations - Non-GAAP | $ | 4,500 | $ | 6,604 | $ | (16,113 | ) | $ | (5,009 | ) |
| Vera Bradley, Inc. Third Quarter Fiscal 2026 GAAP to Non-GAAP Reconciliation Thirty-Nine Weeks Ended November 1, 2025 (in thousands, except per share amounts) (unaudited) | |||
| Thirty-Nine Weeks Ended | |||
| Net loss from continuing operations | $ | (35,334 | ) |
| Severance (1) | 3,920 | ||
| Consulting and professional fees (2) | 1,726 | ||
| Professional fees associated with sale of Pura Vida (1) | 1,110 | ||
| PPE impairment charges (1) | 1,048 | ||
| Transformation initiatives (1) | 670 | ||
| PO cancellation fees (3) | 638 | ||
| Inventory write-off associated with sale of Pura Vida (3) | 250 | ||
| Income tax adjustments (4) | 7,083 | ||
| Net loss from continuing operations - Non-GAAP | (18,889 | ) | |
| Diluted net loss per share from continuing operations - Non-GAAP | $ | (0.67 | ) |
| (1) Recorded in SG&A expenses | |||
| (2) $555 recorded in cost of goods sold and $1,171 recorded in SG&A expenses | |||
| (3) Recorded in cost of goods sold | |||
| (4) Adjusted net loss from continuing operations and adjusted diluted EPS are calculated using a statutory tax rate of 26% |
| Thirty-Nine Weeks Ended | |||||||||||||
| Vera Bradley Direct | Vera Bradley Indirect | Unallocated Corporate Expenses | Total | ||||||||||
| Operating income (loss) from continuing operations | $ | 6,484 | 5,056 | $ | (46,163 | ) | $ | (34,623 | ) | ||||
| Severance | 15 | — | 3,905 | 3,920 | |||||||||
| Consulting and professional fees | 608 | 78 | 1,040 | 1,726 | |||||||||
| Professional fees associated with sale of Pura Vida | — | — | 1,110 | 1,110 | |||||||||
| PPE impairment charges | 1,048 | — | — | 1,048 | |||||||||
| Transformation initiatives | 42 | 10 | 618 | 670 | |||||||||
| PO cancellation fees | 548 | 90 | — | 638 | |||||||||
| Inventory write-off associated with sale of Pura Vida | 214 | 36 | — | 250 | |||||||||
| Operating income (loss) from continuing operations - Non-GAAP | $ | 8,959 | $ | 5,270 | $ | (39,490 | ) | $ | (25,261 | ) |
| Vera Bradley, Inc. Third Quarter Fiscal 2025 GAAP to Non-GAAP Reconciliation Thirty-Nine Weeks Ended November 2, 2024 (in thousands, except per share amounts) (unaudited) | |||
| Thirty-Nine Weeks Ended | |||
| Net loss from continuing operations | $ | (13,409 | ) |
| PPE impairment charges (1) | 2,063 | ||
| Severance (2) | 1,037 | ||
| Project Restoration (1) | 999 | ||
| One-time vendor charges (3) | 747 | ||
| Consulting and professional fees (1) | 380 | ||
| Income tax adjustments (4) | 452 | ||
| Net loss from continuing operations - Non-GAAP | (7,731 | ) | |
| Diluted net loss per share from continuing operations - Non-GAAP | $ | (0.26 | ) |
| (1) Recorded in SG&A expenses | |||
| (2) $926 recorded in SG&A expenses and $111 recorded in cost of goods sold | |||
| (3) Recorded in cost of goods sold | |||
| (4) Adjusted net loss from continuing operations and adjusted diluted EPS are calculated using a statutory tax rate of 26% |
| Thirty-Nine Weeks Ended | |||||||||||||
| Vera Bradley Direct | Vera Bradley Indirect | Unallocated Corporate Expenses | Total | ||||||||||
| Operating income (loss) from continuing operations | $ | 19,530 | 14,637 | $ | (50,544 | ) | $ | (16,377 | ) | ||||
| PPE impairment charges | 2,063 | — | — | 2,063 | |||||||||
| Severance | 321 | 231 | 485 | 1,037 | |||||||||
| Project Restoration | 477 | 522 | — | 999 | |||||||||
| One-time vendor charges | 747 | — | — | 747 | |||||||||
| Consulting and professional fees | — | — | 380 | 380 | |||||||||
| Operating income (loss) from continuing operations - Non-GAAP | $ | 23,138 | $ | 15,390 | $ | (49,679 | ) | $ | (11,151 | ) | |||
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/ed871f05-9801-4027-be27-aa7e4df95398
CONTACTS:Investors:Tom Filandro, PartnerICR, IncVeraBradleyIR@icrinc.comMedia:mediacontact@verabradley.com877-708-VERA (8372)
FAQ**
How does the inventory write-down related to the strategic product shift impact the overall financial health of Vera Bradley Inc. VRA moving forward?
2. What specific metrics are being used to evaluate the success of Project Sunshine, and how does the company plan to drive profitability in the upcoming quarters for Vera Bradley Inc. VRA?
3. Given the notable decrease in both Direct and Indirect segment revenues for Vera Bradley Inc. VRA, what strategies are in place to enhance sales performance and customer engagement in the near term?
4. With the ongoing transformation initiatives, what potential cost reductions or operational efficiencies does Vera Bradley Inc. VRA anticipate to achieve by the end of the fiscal year?
**MWN-AI FAQ is based on asking OpenAI questions about Vera Bradley Inc. (NASDAQ: VRA).
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