AG真人官方

Vera Bradley Announces First Quarter Fiscal Year 2026 Results

First quarter consolidated net revenues totaled $51.7 million

Financial condition remains strong with $86 million in liquidity and no debt

FORT WAYNE, Ind., June 11, 2025 (GLOBE NEWSWIRE) -- Vera Bradley, Inc. (Nasdaq: VRA) (the 鈥淐ompany鈥�) today announced its financial results for the first quarter of the fiscal year ending January 31, 2026 (鈥淔iscal 2026鈥�).

First Quarter Comments

Jackie Ardrey, Chief Executive Officer commented, 鈥淥ur first quarter results were disappointing as top line and profitability trends from the previous several quarters continued. In addition to addressing consumer feedback on product styles and functionality from last summer鈥檚 relaunch, we remain committed to 'being where she shops' and are working on diversification of our wholesale partnerships. While there is significant work to be done on many fronts in order to return the Company鈥檚 results to a stable and positive growth story, the teams are committed to doing just that.鈥�

Summary of Financial Performance for the First Quarter

Consolidated net revenues from continuing operations totaled $51.7 million compared to $67.9 million in the prior year first quarter ended May 4, 2024.

For the current year first quarter, Vera Bradley, Inc.'s net loss from continuing operations totaled ($18.3) million, or ($0.66) per diluted share. These results included pre-tax charges of $1.0 million of property, plant, & equipment impairment charges; $1.0 for PO cancellation fees; $1.0 million of professional fees associated with the sale of Pura Vida; $0.3 million of inventory write-offs associated with the sale of Pura Vida; $0.7 million of consulting and professional fees associated with strategic initiatives and shareholder matters; $0.3 million of severance charges; and total tax impact of $3.9 million adjusted to reflect the non-GAAP tax impacts. The net-of-tax impact totaled $8.2 million. On a non-GAAP basis, Vera Bradley, Inc.鈥檚 first quarter net loss from continuing operations totaled ($10.1) million, or ($0.36) per diluted share.

For the prior year first quarter, Vera Bradley, Inc.鈥檚 net loss from continuing operations totaled ($7.6) million, or ($0.25) per diluted share. These results included pre-tax charges of $0.7 million for one-time vendor charges, $0.4 million of severance charges, $0.1 million of consulting and professional fees primarily associated with strategic initiatives, and total tax impacts of ($0.2) million associated with the pre-tax items listed above, resulting in a $1.0 million net-of-tax impact. On a non-GAAP basis, Vera Bradley, Inc.鈥檚 first quarter net loss from continuing operations totaled ($6.6) million, or ($0.22) per diluted share.

On March 11, 2025, the Company entered into an Interest Purchase Agreement (the 鈥淎greement鈥�) to sell one hundred percent (100%) of Creative Genius, Inc., which operates under the name Pura Vida Bracelets. The sale consummated on March 31, 2025. As a result, the operations of Pura Vida have been classified as discontinued operations in the consolidated financial statements. Prior period amounts have been retrospectively adjusted to conform to the current period presentation. Unless otherwise specified, disclosures in this earnings release reflect continuing operations only.

Following the sale, Pura Vida is no longer included in the Company鈥檚 consolidated financial results.

First Quarter Details

Current year first quarter Vera Bradley Direct segment revenues totaled $43.1 million, a 23.6% decrease from $56.4 million in the prior year first quarter. Comparable sales declined 25.0% in the first quarter, driven by traffic and conversion declines predominantly in our full-line and outlet stores. During the first quarter, the Company also opened two full-line stores and closed two underperforming full-line stores.

Vera Bradley Indirect segment revenues totaled $8.6 million, a 25.6% decrease over $11.5 million in the prior year first quarter. The decrease was primarily related to a decline in specialty and key account orders.

First quarter gross profit totaled $22.8 million, or 44.1% of net revenues, compared to $34.0 million, or 50.1% of net revenues, in the prior year. On a non-GAAP basis, current year gross profit totaled $24.6 million, or 47.5 % of net revenues, compared to $34.8 million, or 51.3% of net revenues in the prior year. The decrease in consolidated gross profit as a percentage of net revenues in the first quarter resulted from channel shift from brick & mortar stores to online sites (which also contributed to increased outbound freight cost).

First quarter consolidated selling, general, and administrative (鈥淪G&A鈥�) expense totaled $40.8 million, or 79.0% of net revenues, compared to $45.1 million, or 66.4% of net revenues, in the prior year. On a non-GAAP basis, current year consolidated SG&A expense totaled $38.3 million, or 74.2% of net revenues, compared to $44.7 million, or 65.7% of net revenues, in the prior year. The decrease in non-GAAP SG&A expense resulted from delivery of cost reduction initiatives along with reduced variable costs.

The Company鈥檚 first quarter operating loss from continuing operations totaled ($17.9) million, or (34.6%) of net revenues, compared to ($10.6) million, or (15.6%) of net revenues, in the prior year first quarter. On a non-GAAP basis, the Company鈥檚 current year operating loss from continuing operations totaled ($13.6) million, or (26.3%) of net revenues, compared to ($9.4) million, or (13.8%) of net revenues, in the prior year.

By segment:

• Vera Bradley Direct operating loss was ($5.5) million, or (12.9%) of Direct net revenues, compared to operating income of $4.0 million, or 7.1% of Direct net revenues, in the prior year. On a non-GAAP basis, Direct operating loss totaled ($2.8) million, or (6.6%) of Direct revenues, compared to $4.9 million, or 8.6% of Direct net revenues, in the prior year.
• Vera Bradley Indirect operating income was $2.0 million, or 23.1% of Indirect net revenues, compared to $3.8 million, or 33.2% of Indirect net revenues, in the prior year. On a non-GAAP basis, Indirect operating income totaled $2.2 million, or 26.1% of Indirect net revenues, compared to $3.8 million, or 33.2% of Indirect net revenues, in the prior year.

Balance Sheet

Cash and cash equivalents as of May 3, 2025 totaled $11.3 million compared to $43.8 million at the end of last year鈥檚 first quarter. The Company had no borrowings on its $75 million asset-based lending (鈥淎BL鈥�) facility at quarter end.

Total quarter-end inventory was $99.2 million, compared to $101.8 million at the end of last year鈥檚 first quarter.

Net capital spending for the first quarter totaled $1.8 million compared to $0.9 million in the prior year and was driven by timing of new store openings in the current year period compared to prior year.

Forward Outlook

The Company today announced several executive and Board leadership changes (disclosed via separate press release). Given these changes as well as significant uncertainty surrounding the consumer environment, the Company is suspending its forward guidance to allow the new team time to provide input on future strategic and financial expectations.

Disclosure Regarding Non-GAAP Measures

Non-GAAP Numbers

The current year non-GAAP first quarter income statement numbers referenced below exclude the previously outlined charges for property, plant, & equipment impairment charges; PO cancellation fees; professional fees associated with the sale of Pura Vida; consulting and professional fees associated with strategic initiatives and shareholder matters; severance charges inventory write-offs associated with the sale of Pura Vida; and the income tax effect related to these items. The prior year non-GAAP first quarter income statement numbers referenced below exclude the previously outlined charges for one-time vendor charges, severance charges, consulting and professional fees primarily associated with strategic initiatives, 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 (鈥淕AAP鈥�). 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 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鈥檚 year-over-year performance and are consistent with management鈥檚 evaluation of business performance. A reconciliation of the non-GAAP measures to the most directly comparable GAAP measures can be found in the Company鈥檚 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 first quarter is scheduled for today, Wednesday, June 11, 2025, at 9:30 a.m. Eastern Time. A broadcast of the call will be available via Vera Bradley鈥檚 Investor Relations section of its website, . Alternatively, interested parties may dial into the call at (877) 407-0779, and enter the access code 13753733. A replay will be available shortly after the call and through June 25, 2025. To access the recording, listeners should dial (844) 512-2921, and enter the access code 13753733.

About Vera Bradley, Inc.

Vera Bradley, based in Fort Wayne, Indiana, is a leading designer of women鈥檚 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 (鈥淰B Direct鈥�) and Vera Bradley Indirect (鈥淰B 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鈥檚 websites, , , and ; and the Vera Bradley annual outlet sale in Fort Wayne, Indiana. The VB Indirect business consists of sales of Vera Bradley products to approximately 1,200 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鈥檚 most recent Corporate Responsibility and Sustainability Report outlining its ESG (Environmental, Social, and Governance) initiatives at .听

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鈥檚 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鈥檚 financial results is included from time to time in the 鈥淩isk Factors鈥� and 鈥淢anagement鈥檚 Discussion and Analysis of Financial Condition and Results of Operations鈥� sections of the Company鈥檚 public reports filed with the SEC, including the Company鈥檚 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.

CONTACTS:

Investors:
Tom Filandro, Partner
ICR, Inc
[email protected]听

Media:听听
[email protected]听
877-708-VERA (8372)