Vera Bradley Announces Fourth Quarter Fiscal Year 2025 Results

Vera Bradley, Inc., a leading designer of women's handbags, luggage, and accessories, has released its financial results for the fourth quarter and fiscal year ending February 1, 2025. The company, which operates the Vera Bradley and Pura Vida brands, has faced a challenging period as it navigates its strategic transformation initiative, Project Restoration. Financial Highlights For the fourth quarter, Vera Bradley reported consolidated net revenues of $100.0 million, a decrease from $133.3 million in the same period last year. The company posted a consolidated net loss of ($47.0) million, or ($1.69) per diluted share, compared to a net loss of ($1.9) million, or ($0.06) per diluted share, in the prior year. On a non-GAAP basis, the net loss was ($8.3) million, or ($0.30) per diluted share.For the full fiscal year, consolidated net revenues were $372.0 million, down from $470.8 million in the previous year. The company reported a consolidated net loss of ($62.2) million, or ($2.15) per diluted share, compared to a net income of $7.8 million, or $0.25 per diluted share, in the prior year. On a non-GAAP basis, the net loss for the fiscal year was ($18.4) million, or ($0.64) per diluted share. Business and Operational Highlights Vera Bradley's Direct segment revenues for the fourth quarter totaled $76.5 million, a 17.8% decrease from the prior year. The Indirect segment revenues were $9.9 million, down 38.5%. Pura Vida segment revenues were $13.6 million, a 43.8% decrease from the previous year. The company experienced a shift from store sales to e-commerce, impacting profitability.For the fiscal year, Direct segment revenues were $257.6 million, a 16.9% decrease, while Indirect segment revenues were $61.2 million, down 17.1%. Pura Vida segment revenues were $53.2 million, a 38.9% decrease. Strategic Initiatives and Corporate Developments Vera Bradley has signed an interest purchase agreement to sell all ownership interests in the Pura Vida business, marking a significant step in its strategic evolution. The company also announced a new $30.0 million share repurchase authorization, although it does not currently plan to purchase shares under this program.Barbara Bradley Baekgaard, co-founder of Vera Bradley, is stepping down from the Board and will not stand for re-election. She will continue to serve as an Emeritus member of the Board. Management's Perspective CEO Jackie Ardrey acknowledged the challenges faced during the fourth quarter and the ongoing transformation under Project Restoration. Ardrey emphasized the company's commitment to refining its product and pricing strategy based on customer feedback and selling data. She also highlighted the strong pipeline of new business development in the Indirect channel. Future Outlook For Fiscal 2026, Vera Bradley expects consolidated net revenues of approximately $280 million, with a gross profit percentage of around 52.5%. SG&A expenses are projected to be approximately $155 million, and the company anticipates an operating loss of around ($6) million. The end-of-year cash balance is expected to be approximately $40 million.SEC Filing: Vera Bradley, Inc. [ VRA ] - 8-K - Mar. 12, 2025