Core Viewpoint - Vera Bradley's long-time board member Frances P. Philip will not seek re-election at the 2025 Shareholder Meeting, marking the end of her 14-year tenure on the board [1][3]. Group 1: Board Member Contributions - Frances P. Philip joined the Vera Bradley Board in 2011 and has been a member of the Talent and Compensation Committee, as well as the Nominating, Governance and Sustainability Committee [2]. - She has served as the Lead Independent Director since 2022, providing insights from her extensive experience in product development, branding, marketing, and retail [2]. - Robert Hall, Chairman of the Board, acknowledged her strategic insight and expertise in merchandising and product development as significant contributions to the company's journey [3]. Group 2: Company Overview - Vera Bradley, based in Fort Wayne, Indiana, is a leading designer of women's handbags, luggage, travel items, fashion and home accessories, and unique gifts [4]. - The company was founded in 1982 and is recognized for its innovative designs, iconic patterns, and vibrant colors that resonate with women globally [4]. Group 3: Business Segments - Vera Bradley operates through two reportable segments: Vera Bradley Direct ("VB Direct") and Vera Bradley Indirect ("VB Indirect") [5]. - The VB Direct segment includes sales through full-line and outlet stores, as well as the company's websites and annual outlet sale [5]. - The VB Indirect segment consists of sales to approximately 1,200 specialty retail locations, select department stores, and third-party e-commerce sites, along with royalties from licensing agreements [5].

Financial Performance - For fiscal 2025, net revenues decreased by $98.8 million, or 21.0%, to $372.0 million from $470.8 million in fiscal 2024[245]. - Gross profit for fiscal 2025 was $186.8 million, representing 50.2% of net revenues, compared to $256.4 million or 54.5% in fiscal 2024[243]. - Selling, general, and administrative expenses (SG&A) for fiscal 2025 were $223.8 million, accounting for 60.2% of net revenues, compared to $241.5 million or 51.3% in fiscal 2024[243]. - Operating loss for fiscal 2025 was $(42.4) million, a decrease of $52.8 million, or 505.7%, from operating income of $10.4 million in fiscal 2024[254]. - Net loss for fiscal 2025 was $(62.2) million, a decrease of $70.0 million from net income of $7.8 million in fiscal 2024[262]. - Gross profit for fiscal 2025 decreased by $69.6 million, or 27.1%, to $187.8 million, with gross profit as a percentage of net revenues dropping to 50.2% from 54.5%[250]. - SG&A expenses decreased by $17.7 million, or 7.3%, to $223.8 million, representing 60.2% of net revenues compared to 51.3% in fiscal 2024[251]. Revenue Breakdown - The VB Direct segment generated $257.6 million in revenues for fiscal 2025, making up 69.3% of total net revenues[244]. - Pura Vida segment revenues decreased to $53.2 million in fiscal 2025, representing 14.3% of total net revenues[244]. - Comparable sales, including e-commerce, decreased by 16.6% in fiscal 2025[244]. - Vera Bradley comparable sales decreased by $49.6 million, or 16.6%, including a 22.2% decrease in comparable store sales and a 7.3% decrease in e-commerce sales[246]. Store Operations - The company closed six stores and opened eight stores during fiscal 2025, ending the year with 126 total stores[244]. Impairment Charges - The impairment of goodwill and intangible assets was $6.2 million in fiscal 2025, compared to $5.4 million in fiscal 2024[243]. - An impairment charge of $6.2 million was recorded for the Pura Vida brand in the fourth quarter of fiscal 2025[284]. - An impairment charge of $5.4 million was recorded for the Pura Vida brand during fiscal 2024[285]. - Impairment charges of $44.3 million and $25.0 million were recorded during fiscal 2023 for goodwill and the Pura Vida brand, respectively[286]. - Impairment charges for long-lived assets were $2.6 million and $1.4 million for the periods ended February 1, 2025, and January 28, 2023, respectively[280]. - Goodwill was fully impaired during fiscal 2023, resulting in no balance as of February 1, 2025[282]. Cash Flow and Financing - Net cash used in operating activities was $(14.1) million in fiscal 2025, compared to net cash provided of $48.0 million in fiscal 2024[268]. - Net cash used in investing activities was $10.4 million in fiscal 2025, a decrease from $13.8 million in fiscal 2024[270]. - Net cash used in financing activities increased to $22.5 million in fiscal 2025 from $3.5 million in fiscal 2024, primarily due to increased stock repurchases[271]. - The company has access to a $75.0 million asset-based revolving credit agreement, with no debt outstanding as of February 1, 2025[264]. - The Credit Agreement allows for a revolving credit commitment of $75.0 million, with interest rate changes impacting annual interest expense by approximately $0.2 million for each quarter point[287]. Strategic Initiatives - The company continued to implement strategic price increases across both brands to mitigate inflationary pressures[239]. - The company is focused on enhancing customer experience and optimizing its product and pricing strategy based on selling data and customer feedback[225]. Inventory Management - The balance of inventory adjustments was $7.7 million and $8.1 million for the fiscal years ended February 1, 2025, and February 3, 2024, respectively[278]. - The company sources a majority of its finished goods from suppliers in various countries, with purchases and sales primarily denominated in U.S. dollars, mitigating foreign exchange rate risk[288].

Core Insights - Vera Bradley, Inc. co-founder Barbara Baekgaard will not seek re-election at the upcoming shareholders meeting and will transition to a Director Emeritus role while remaining involved in the brand transformation [1][5] Company Overview - Baekgaard co-founded Vera Bradley in 1982 with Patricia Miller, significantly contributing to its growth into a recognized lifestyle brand known for vibrant, handcrafted patterns and innovative designs [2] - The company has a mission to empower women through thoughtful design, social impact, and a commitment to giving back, values that Baekgaard has championed since the brand's inception [5] Leadership and Impact - CEO Jackie Ardrey emphasized Baekgaard's pivotal role in shaping the company and the communities it serves, highlighting her leadership, creativity, and generosity [3] - Baekgaard expressed appreciation for the support from the Board and optimism about the company's future under current leadership [5] Philanthropic Efforts - Baekgaard co-established the Vera Bradley Foundation for Breast Cancer in 1994, which has raised over $41 million for breast cancer research [4] - She also founded The Bradley, a boutique hotel in Fort Wayne, and continues her philanthropic endeavors while serving on boards focused on medical research [4]

Financial Data and Key Metrics Changes - For Q4 fiscal 2025, consolidated revenues totaled $100 million, a decrease from $133.3 million in the prior year [35] - The net loss for Q4 was $8.3 million, or $0.30 per diluted share, compared to a net income of $3.5 million, or $0.11 per diluted share last year [35] - Q4 gross margin was 45.7%, down from 52.3% in the previous year, reflecting a mix shift across sales channels [13][38] - Year-end cash and cash equivalents totaled $30.4 million, with no debt and liquidity of $75 million [27] Business Line Data and Key Metrics Changes - Vera Bradley direct segment revenues for Q4 were $76.5 million, a 17.8% decrease from $93 million in the prior year [35] - Indirect segment revenues for Q4 totaled $9.9 million, a 39% decrease from $16.1 million in the prior year [37] - Pura Vida segment revenues for Q4 were $13.6 million, a 44% decrease from $24.2 million in the prior year [37] Market Data and Key Metrics Changes - E-commerce revenues were roughly flat compared to last year, while outlet stores experienced declines in traffic and conversion [11] - Notably, there was approximately 10% growth among customers aged 18 to 34 with household incomes above $100,000 [11] Company Strategy and Development Direction - The company is undergoing Project Restoration, a strategic initiative to transform its business model and brand positioning [6] - A significant development was the decision to sell the Pura Vida business to concentrate resources on strengthening Vera Bradley's market position [9] - The company plans to expand heritage products and reduce higher price point assortments while focusing on customer feedback for product adjustments [7][8] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that the transformation is taking longer than anticipated but remains confident in the strategic direction [6] - The company expects continued business headwinds due to economic trends and consumer uncertainty, particularly affecting the outlet channels [46][68] - For fiscal 2026, the company anticipates consolidated net revenues of approximately $280 million, reflecting ongoing consumer challenges [46] Other Important Information - The company is targeting a further 10% reduction in overall inventory for fiscal 2026, building on a 7% reduction from the previous year [16][51] - The company expects to deliver cost savings of a minimum of $20 million in fiscal 2026 through efficiency initiatives [26] Q&A Session Summary Question: Focus on digital marketplaces and purchasing differences - Management noted that the Target Marketplace has been extremely successful and aligns well with customer shopping preferences [56] Question: Collaborations and their flow this year - Management indicated that the Wicked collection has been successful in attracting desirable customers and plans to have a more robust assortment this year [60] Question: Balancing old and new customers - Management emphasized the importance of closely monitoring sales data to understand customer preferences and adapt product offerings accordingly [62] Question: Ability to pivot amid macroeconomic headwinds - Management acknowledged the need for adjustments in strategy due to consumer stress and is actively working on improving performance [68]

Vera Bradley, Inc. (NASDAQ:VRA) Q4 2025 Earnings Conference Call March 12, 2025 9:30 AM ET Company Participants Mark Dely - CAO Jackie Ardrey - CEO Michael Schwindle - CFO Conference Call Participants Eric Beder - SCC Research Daniel Harriman - Sidoti Operator Greetings, and welcome to the Vera Bradley, Inc. Fourth Quarter Fiscal 2025 Earnings Conference Call. At this time, all participants are in a listen-only mode. A brief question and answer session will follow the formal presentation. As a reminder, thi ...

Financial Performance - Consolidated net revenues for Fiscal 2025 totaled $372.0 million, a decrease of 21% from $470.8 million in Fiscal 2024[8] - The consolidated net loss for Fiscal 2025 was ($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 fiscal year[9][10] - Fourth quarter consolidated net revenues were $100.0 million, down 25% from $133.3 million in the prior year fourth quarter[5] - Vera Bradley Direct segment revenues for the fiscal year decreased by 16.9% to $257.6 million, while Indirect segment revenues fell by 17.1% to $61.2 million[20][21] - Pura Vida segment revenues decreased by 38.9% to $53.2 million, driven by decreased ecommerce and wholesale sales[22] - Consolidated net revenues for Fiscal 2026 are expected to be approximately $280 million, down from $318.8 million in Fiscal 2025[34] - Vera Bradley Direct operating income for Fiscal 2026 is projected at $25.2 million, or 9.8% of Direct net revenues, compared to $61.9 million, or 20.0% in the prior year[33] - The Company reported a consolidated operating loss of approximately ($6) million in Fiscal 2026, compared to a loss of ($16.9) million in Fiscal 2025[43] - The net loss attributable to Vera Bradley, Inc. for the fifty-two weeks ended February 1, 2025, was $62.188 million, compared to a net income of $7.838 million for the fifty-three weeks ended February 3, 2024[54] - Gross profit for the fifty-two weeks ended February 1, 2025, was $186.839 million, down from $256.413 million for the previous year, indicating a decrease of about 27%[52] Cash Flow and Financial Position - Cash and cash equivalents as of February 1, 2025, totaled $30.4 million, down from $77.3 million at the prior fiscal year end[29] - The company anticipates an increase in cash balance to approximately $40 million by the end of Fiscal 2026[1] - The end of year cash balance is approximately $40 million, reflecting a decrease from the previous year[43] - Cash flows from operating activities for the fifty-two weeks ended February 1, 2025, resulted in a net cash used of $(14.102) million, contrasting with $47.993 million provided in the previous year[54] - The company reported a net cash used in operating activities of $(14.102) million for the fifty-two weeks ended February 1, 2025, compared to $47.993 million provided in the previous year[64] - Free cash flow usage was $(24.475) million for the fifty-two weeks ended February 1, 2025, compared to $44.223 million in the prior year[64] Cost Management and Efficiency Initiatives - The company is on track to deliver a minimum of $20 million in cost savings in 2025 as part of its efficiency initiative[3] - Consolidated SG&A expense is projected to be approximately $155 million in Fiscal 2026, down from $178.2 million in Fiscal 2025[34] - Total selling, general, and administrative expenses for the fifty-two weeks ended February 1, 2025, were $223.808 million, down from $241.457 million for the previous year[52] - The company incurred severance costs of $3.871 million for the fifty-two weeks ended February 1, 2025[60] Strategic Developments - The company signed an interest purchase agreement to sell all ownership interests of the Pura Vida business, marking a significant strategic evolution[3] - The Board of Directors approved an additional $30.0 million share repurchase authorization for the 2024 Share Repurchase Program[31] - The Company does not currently plan to purchase shares under the 2024 Share Repurchase Program but may utilize the authorization depending on market conditions[31] Impairments and Non-GAAP Measures - The company reported impairment of intangible assets of $6.237 million for the thirteen weeks ended February 1, 2025, compared to $5.429 million for the fourteen weeks ended February 3, 2024[52] - Non-GAAP net loss attributable to Vera Bradley, Inc. for the fifty-two weeks ended February 1, 2025, was $(18.438) million, with a diluted net loss per share of $(0.64)[60] - Net income attributable to Vera Bradley, Inc. for the fifty-three weeks ended February 3, 2024, was $7.838 million, with a non-GAAP net income of $17.153 million[62] - The diluted net income per share attributable to Vera Bradley, Inc. on a non-GAAP basis was $0.55[62] - Operating income for Vera Bradley was $61.873 million, while the total operating income on a non-GAAP basis was $22.581 million[62] Operating Losses - Operating loss for the thirteen weeks ended February 1, 2025, was $(23.324) million, compared to an operating income of $10.442 million for the same period last year[52] - Pura Vida's operating loss for Fiscal 2026 is expected to be ($15.1) million, or (28.4%) of its net revenues, compared to a loss of ($2.3) million, or (2.7%) in the prior year[33] - The company experienced an operating loss of $(73.389) million in the unallocated corporate segment[62]

Core Insights - Vera Bradley, Inc. reported consolidated net revenues of $372.0 million for Fiscal 2025, a decrease from $470.8 million in Fiscal 2024 [8][9] - The company experienced 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 fiscal year [9][10] - Management anticipates an increase in cash balance to approximately $40 million by the end of Fiscal 2026 [1] Financial Performance Summary - Fourth quarter consolidated net revenues were $100.0 million, down from $133.3 million in the same quarter of the previous year [5] - The fourth quarter consolidated net loss was ($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 [6][7] - For the fiscal year, consolidated gross profit totaled $186.8 million, or 50.2% of net revenues, down from $256.4 million, or 54.5% of net revenues in the prior year [21] Segment Performance - Vera Bradley Direct segment revenues for the fiscal year were $257.6 million, a 16.9% decrease from $309.9 million in the prior year [22] - Vera Bradley Indirect segment revenues totaled $61.2 million, a 17.1% decrease from $73.8 million in the prior year [19] - Pura Vida segment revenues decreased by 38.9% to $53.2 million from $87.1 million in the prior year [20] Cost Management and Strategic Initiatives - The company is on track to deliver a minimum of $20 million in cost savings in 2025 as part of its efficiency initiative [3] - Management has signed an agreement to sell all ownership interests in the Pura Vida business to focus on Vera Bradley's long-term transformation [3] - Consolidated SG&A expenses for the fiscal year totaled $223.8 million, or 60.2% of net revenues, compared to $241.5 million, or 51.3% of net revenues in the prior year [23] Balance Sheet and Cash Flow - As of February 1, 2025, cash and cash equivalents totaled $30.4 million, down from $77.3 million at the end of the prior fiscal year [27] - Total inventory at year-end was $110.0 million, compared to $118.3 million at the prior fiscal year end [27] - The company repurchased approximately $21.8 million of its common stock during the fiscal year [29]

Company Overview - Vera Bradley, Inc. operates two lifestyle brands: Vera Bradley and Pura Vida, both targeting a devoted female customer base with a focus on community and social consciousness [3][4] - Vera Bradley is known for its innovative designs and iconic patterns in women's handbags, luggage, and accessories, established in 1982 [4] - Pura Vida is a digitally native brand offering bracelets and lifestyle accessories, based in La Jolla, California [5] Financial Reporting - The company plans to report its fourth quarter and fiscal year results for the period ending February 1, 2025, on March 12, 2025, at 8:00 a.m. Eastern Time [1] - A conference call to discuss the financial results will be held on the same day at 9:30 a.m. Eastern Time, with a live webcast available on the company's website [2] Business Segments - Vera Bradley has three reportable segments: VB Direct, VB Indirect, and Pura Vida [6] - VB Direct includes sales through full-line and outlet stores, as well as the company's websites [6] - VB Indirect consists of sales to approximately 1,200 specialty retail locations and includes royalties from licensing agreements [6] - The Pura Vida segment encompasses sales through its website, wholesale retailers, and Pura Vida retail stores [6]

Core Points - Vera Bradley, Inc. announced the launch of ticket sales for the 2025 Vera Bradley Annual Outlet Sale, scheduled from April 30 to May 4, 2025, at the Allen County War Memorial Coliseum in Fort Wayne, Indiana [1] - The sale will feature discounts of up to 70% off MSRP on a variety of products, including handbags, travel items, and accessories [2] - The event is expected to attract over 24,000 shoppers, generating an economic impact of more than $5 million for the local community [5] Ticketing and Shopping Details - Tickets for the sale are priced at $6 each and are required for shopping sessions from April 30 to May 2 [2][3] - Public shopping will be available without tickets on May 3 and May 4 [3][4] - Three shopping sessions will be held daily during the ticketed days, with specific hours outlined for each session [8] Community Engagement - Vera Bradley will support the Vera Bradley Foundation for Breast Cancer during the sale, offering limited-edition apparel and donation opportunities [4] - Shoppers can participate in fundraising activities, including a chance to win a unique "Quilt with a Cause" [4] Company Overview - Vera Bradley operates two lifestyle brands, Vera Bradley and Pura Vida, both targeting a multi-generational female customer base [6] - The company is known for its innovative designs and vibrant patterns, appealing to women globally [7] - Vera Bradley acquired a 100% interest in Pura Vida, enhancing its product offerings in lifestyle accessories [9]

Core Viewpoint - Vera Bradley has appointed Andrew Meslow, former CEO of L Brands and Bath and Body Works, to its Board of Directors, while long-time board member Mary Lou Kelley has announced her retirement effective February 7, 2025 [1][3][4]. Group 1: Board Changes - Andrew Meslow brings extensive experience in retail, having held senior leadership roles at L Brands, Bath & Body Works, Victoria's Secret, Banana Republic, and Ann Taylor [2]. - Frances Philip, Lead Independent Director, expressed excitement about Meslow's appointment, highlighting his operational excellence and public company CEO experience as valuable for the company's Project Restoration [3]. - Mary Lou Kelley has served on the board since 2015 and has contributed significantly with her insights in retail, marketing, and e-commerce [3][4]. Group 2: Company Overview - Vera Bradley operates two lifestyle brands: Vera Bradley and Pura Vida, both targeting a multi-generational female customer base with a focus on community and social consciousness [6]. - The company is known for its innovative designs and vibrant colors in women's handbags, luggage, and accessories, established in 1982 [7]. - Pura Vida, based in La Jolla, California, is a digitally native brand offering bracelets and lifestyle accessories [8]. Group 3: Business Segments - Vera Bradley has three reportable segments: VB Direct, VB Indirect, and Pura Vida, with VB Direct encompassing sales through full-line and outlet stores, websites, and annual outlet sales [9]. - The VB Indirect segment includes sales to approximately 1,200 specialty retail locations and third-party e-commerce sites [9][10].