Core Insights - CriticalPoint has acquired Pura Vida Bracelets from Vera Bradley, Inc., with Ryan Heuser appointed as the new CEO [1][4] - Pura Vida, founded in 2010, is known for its handcrafted jewelry and lifestyle accessories, particularly appealing to younger female consumers [2][6] - The brand has a strong social media presence and a mission focused on giving back, which has fostered a loyal customer base [2][6] Company Overview - Pura Vida Bracelets started as a digitally native brand, selling artisan-made products and has been recognized on the Inc. 5000 list of fastest-growing private companies [2] - The company was acquired by Vera Bradley in 2019, which specializes in high-end handbags and accessories [2][6] - Pura Vida has a vibrant aesthetic and a community of over 3 million followers, emphasizing its commitment to social causes [6] Leadership and Strategy - Ryan Heuser brings nearly 30 years of experience in the fashion industry, having co-founded Paul Frank Industries, which became a global brand [3] - Heuser aims to reignite Pura Vida's creative spirit while maintaining its core values and mission [4] - CriticalPoint sees significant growth potential in Pura Vida, leveraging its operational expertise to enhance the brand's market presence [3]

Core Viewpoint - Rosen Law Firm is investigating potential securities claims on behalf of shareholders of Vera Bradley, Inc. due to allegations of materially misleading business information issued by the company [1]. Group 1: Investigation and Class Action - Shareholders who purchased Vera Bradley securities may be entitled to compensation through a class action lawsuit without any out-of-pocket fees [2]. - The Rosen Law Firm is preparing a class action to seek recovery of investor losses related to Vera Bradley [2]. Group 2: Financial Performance - On June 11, 2025, Vera Bradley announced disappointing financial results for the first quarter of the 2026 fiscal year, with the CEO commenting on continued negative trends in top line and profitability [3]. - Following the announcement of these results, Vera Bradley's stock price fell by 19% on the same day [3]. Group 3: Rosen Law Firm's Credentials - The Rosen Law Firm has a strong track record in securities class actions, having achieved the largest securities class action settlement against a Chinese company at the time [4]. - The firm has been ranked No. 1 by ISS Securities Class Action Services for the number of securities class action settlements in 2017 and has consistently ranked in the top 4 since 2013, recovering hundreds of millions of dollars for investors [4]. - In 2019, the firm secured over $438 million for investors, and its founding partner was recognized as a Titan of Plaintiffs' Bar by Law360 in 2020 [4].

Core Viewpoint - Rosen Law Firm is investigating potential securities claims on behalf of shareholders of Vera Bradley, Inc. due to allegations of materially misleading business information issued by the company [1] Group 1: Legal Action and Compensation - Shareholders who purchased Vera Bradley securities may be entitled to compensation through a class action without any out-of-pocket fees or costs [2] - The Rosen Law Firm is preparing a class action to seek recovery of investor losses [2] Group 2: Financial Performance - On June 11, 2025, Vera Bradley announced disappointing financial results for the first quarter of the 2026 fiscal year, with the CEO commenting on continued negative trends in top line and profitability [3] - Following the announcement, Vera Bradley's stock price fell by 19% on the same day [3] Group 3: Rosen Law Firm's Credentials - The Rosen Law Firm emphasizes the importance of selecting qualified counsel with a successful track record in securities class actions [4] - The firm has achieved significant settlements, including the largest securities class action settlement against a Chinese company at the time, and has consistently ranked highly in securities class action settlements since 2013 [4] - In 2019, the firm secured over $438 million for investors, showcasing its capability in recovering investor losses [4]

Core Insights - Vera Bradley is under investigation for potential securities fraud and unlawful business practices involving its officers and directors [1] - The company reported disappointing financial results for Q1 of the 2026 fiscal year, indicating ongoing negative trends in revenue and profitability [2] - Following the announcement of poor financial results, Vera Bradley's stock price dropped by 19.15%, closing at $1.90 per share [3] Financial Performance - Vera Bradley's CEO acknowledged the need for significant improvements to return to positive growth [2] - The company has experienced continued disappointing performance in both top line and profitability metrics over several quarters [2] Leadership Changes - Vera Bradley announced key leadership changes, including the departure of CEO Jackie Ardrey at the end of July [2]

Group 1 - Vera Bradley's Q1 2026 results were significantly poor, aligning with prior warnings issued in January regarding a complete brand overhaul that has alienated customers [1] - The company is now facing increased financial risks as a result of its operational changes [1] Group 2 - The investment approach discussed focuses on long-term operational aspects rather than market-driven dynamics, emphasizing the importance of understanding a company's earnings power and competitive dynamics [1]

PART I. FINANCIAL INFORMATION [Item 1. Financial Statements (unaudited)](index=5&type=section&id=Item%201.%20Financial%20Statements%20(unaudited)) The unaudited statements reflect a quarterly net loss of $33.5 million, heavily impacted by the sale and reclassification of the Pura Vida business as a discontinued operation - On March 31, 2025, the company completed the sale of its Pura Vida business, now classified as **discontinued operations** with prior period data retrospectively adjusted[34](index=34&type=chunk)[39](index=39&type=chunk) Condensed Consolidated Statements of Operations Highlights (Thirteen Weeks Ended May 3, 2025 vs May 4, 2024) | Metric | Thirteen Weeks Ended May 3, 2025 (in thousands) | Thirteen Weeks Ended May 4, 2024 (in thousands) | | :--- | :--- | :--- | | Net Revenues | $51,652 | $67,948 | | Gross Profit | $22,767 | $34,040 | | Operating Loss from Continuing Operations | $(17,857) | $(10,617) | | Net Loss from Continuing Operations | $(18,260) | $(7,604) | | Loss from Discontinued Operations | $(15,200) | $(517) | | **Net Loss** | **$(33,460)** | **$(8,121)** | | **Diluted Net Loss Per Share** | **$(1.20)** | **$(0.26)** | Condensed Consolidated Balance Sheet Highlights (As of May 3, 2025 vs Feb 1, 2025) | Metric | May 3, 2025 (in thousands) | February 1, 2025 (in thousands) | | :--- | :--- | :--- | | Cash and cash equivalents | $11,281 | $28,628 | | Inventories | $99,151 | $91,430 | | Total Assets | $267,940 | $306,690 | | Total Liabilities | $121,906 | $127,735 | | Total Shareholders' Equity | $146,034 | $178,955 | - **Net cash used in operating activities was $17.9 million**, and cash and cash equivalents decreased by $19.1 million to end the period at $11.3 million[26](index=26&type=chunk) [Notes to the Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) - The sale of Pura Vida for **$3.5 million in total consideration** resulted in a **net loss on disposal of $15.2 million**[111](index=111&type=chunk)[112](index=112&type=chunk)[115](index=115&type=chunk) - Following the Pura Vida sale, the company now operates under two reportable segments: **Vera Bradley Direct** and **Vera Bradley Indirect**[35](index=35&type=chunk)[103](index=103&type=chunk) Net Revenues by Segment (Thirteen Weeks Ended May 3, 2025) | Segment | Net Revenues (in thousands) | % of Total | | :--- | :--- | :--- | | VB Direct | $43,083 | 83.4% | | VB Indirect | $8,569 | 16.6% | | **Total** | **$51,652** | **100.0%** | - The company has a **$75.0 million asset-based revolving credit agreement** with no borrowings outstanding as of May 3, 2025[73](index=73&type=chunk)[79](index=79&type=chunk) - A new **$30.0 million share repurchase program** was approved, with no repurchases made during the quarter[94](index=94&type=chunk)[95](index=95&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=26&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses poor quarterly performance due to macroeconomic pressures, a 24.0% revenue decline, ongoing 'Project Restoration' initiatives, and significant leadership changes - The company announced the departure of its CEO and CFO, appointing an interim Executive Chairman and a new CFO[124](index=124&type=chunk)[125](index=125&type=chunk)[126](index=126&type=chunk) - The company is advancing its **'Project Restoration'** strategy, focusing on expense management and streamlining the organization[121](index=121&type=chunk)[122](index=122&type=chunk) Comparable Sales Performance (Thirteen Weeks Ended May 3, 2025) | Metric | YoY Change | | :--- | :--- | | Comparable Sales (including e-commerce) | (25.0)% | | Comparable Store Sales | (34.3)% | | E-commerce Sales | (11.7)% | - **Gross margin decreased from 50.1% to 44.1%** year-over-year, impacted by channel mix shifts and higher shipping costs[142](index=142&type=chunk) - SG&A expenses decreased by $4.3 million but **increased as a percentage of revenue to 79.0%** from 66.4%[143](index=143&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=33&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company reports no material changes to its market risks since its last Annual Report on Form 10-K - As of May 3, 2025, there were **no material changes** to the market risks described in the company's most recent Annual Report on Form 10-K[169](index=169&type=chunk) [Item 4. Controls and Procedures](index=33&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective, with no material changes to internal controls during the quarter - The CEO and CFO concluded that the company's **disclosure controls and procedures were effective** as of May 3, 2025[170](index=170&type=chunk) - **No changes in internal control over financial reporting** occurred during the quarter that have materially affected, or are reasonably likely to materially affect, internal controls[171](index=171&type=chunk) PART II. OTHER INFORMATION [Item 1. Legal Proceedings](index=34&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in routine legal proceedings, primarily for intellectual property protection, which are not expected to have a material adverse impact - The company is subject to various routine legal proceedings, including lawsuits to police its **intellectual property rights**[172](index=172&type=chunk) - Management does not believe any of these claims would have a **material adverse impact** on the company at this time[173](index=173&type=chunk) [Item 1A. Risk Factors](index=34&type=section&id=Item%201A.%20Risk%20Factors) This section confirms no material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K - There have been **no material changes** to the risk factors previously set forth in the Company's Annual Report on Form 10-K[174](index=174&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=35&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reports no shares were repurchased during the quarter under its new $30.0 million share repurchase program - A share repurchase program authorizing up to **$30.0 million** is in effect from December 2024 to December 2027[175](index=175&type=chunk) - **No purchases were made** under the 2024 Share Repurchase Program as of May 3, 2025[176](index=176&type=chunk) [Item 5. Other Information](index=35&type=section&id=Item%205.%20Other%20Information) No directors or executive officers adopted or terminated any Rule 10b5-1 trading plans during the reported quarter - During the thirteen weeks ended May 3, 2025, **no directors or executive officers adopted or terminated** any Rule 10b5-1(c) trading plans[177](index=177&type=chunk) [Item 6. Exhibits](index=36&type=section&id=Item%206.%20Exhibits) This section lists filed exhibits, including executive compensation plans, Sarbanes-Oxley certifications, and XBRL data files - A list of exhibits filed with the report is provided, including compensation plans, CEO/CFO certifications, and XBRL data files[178](index=178&type=chunk)

Core Viewpoint - Vera Bradley Inc. experienced a significant decline of approximately 23%, marking the worst intraday performance since its IPO in the U.S. [1] - The company has suspended its earnings guidance and announced the departure of its CEO [1] Company Summary - Vera Bradley Inc. is a women's fashion, luggage, and handbag design company [1] - The recent stock drop reflects investor concerns regarding the company's future performance and leadership stability [1] Industry Context - The decline in Vera Bradley's stock may indicate broader challenges within the women's fashion and accessories market, particularly in maintaining investor confidence [1]

Core Viewpoint - Vera Bradley, Inc. is undergoing significant changes in leadership and strategy, with a focus on transitioning to new management and enhancing operational effectiveness [4]. Group 1: Leadership Changes - Ian Bickley has been introduced as the incoming Executive Chairman, indicating a shift in the company's governance structure [4]. - The company is emphasizing the importance of the transition and the role of new leadership in guiding future strategies [4]. Group 2: Financial Overview - The earnings conference call is part of the company's regular financial reporting, highlighting its commitment to transparency and communication with investors [1][2]. - The call includes forward-looking statements that reflect the company's expectations and potential risks, which are standard in financial disclosures [3].

Financial Data and Key Metrics Changes - For Q1 2026, consolidated revenues totaled $51.7 million, a decrease from $67.9 million in the prior year [19] - Non-GAAP net loss from continuing operations was $10 million or $0.36 per diluted share, compared to a net loss of $6.6 million or $0.22 per diluted share in the previous year [19] - Non-GAAP gross margin was $24.6 million or 47.5% of net revenues, down from 51.3% in the prior year [21] - Non-GAAP SG&A expenses were $38.3 million or 74.2% of net revenues, compared to 65.7% in the prior year [21] - Cash and cash equivalents at the end of the quarter totaled $11.3 million, with no borrowings on the $75 million ABL facility [22] Business Line Data and Key Metrics Changes - Direct segment revenues for Q1 totaled $43.1 million, a 23.6% decrease from $56.4 million in the prior year [20] - Indirect segment revenues were $8.6 million, a 25.6% decrease from $11.5 million in the prior year, primarily due to a decline in specialty and key account orders [20] Market Data and Key Metrics Changes - E-commerce revenues showed strength, particularly in online outlet and Target Marketplace channels [13] - The company experienced a shift in customer behavior, with recently acquired customers comprising 45% of the active twelve-month file, up from 30% last year [16] Company Strategy and Development Direction - The company is focused on transforming its business model and brand positioning through four pillars: product, brand, customer, and channel [11] - A new strategy and transformation committee has been formed to refine the company's strategic direction and growth initiatives [5] - The company aims to restore brand relevance with a new generation of consumers while simplifying its operating model for greater efficiency [9] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by macroeconomic pressures but expressed optimism about the brand's potential to connect with consumers [9][16] - The company is suspending prior year guidance due to uncertainties in the consumer environment [24] Other Important Information - The sale of Pura Vida was completed during the first quarter, and its operations are classified as discontinued [18] - The company plans to close 10 unprofitable full-line store locations this year [14] Q&A Session Summary - No specific questions or answers were documented in the provided content, indicating that the call may have concluded without a formal Q&A session.

Financial Data and Key Metrics Changes - Consolidated revenues for Q1 2026 totaled $51.7 million, a decrease from $67.9 million in Q1 2025 [17] - Non-GAAP net loss from continuing operations was $10 million or $0.36 per diluted share, compared to a net loss of $6.6 million or $0.22 per diluted share in the prior year [17] - Non-GAAP gross margin was 47.5% of net revenues, down from 51.3% in the prior year [19] - Non-GAAP SG&A expenses were $38.3 million or 74.2% of net revenues, compared to $44.7 million or 65.7% in the prior year [19] - Cash and cash equivalents at the end of the quarter were $11.3 million, with no borrowings on the $75 million ABL facility [20] Business Line Data and Key Metrics Changes - Direct segment revenues for Q1 2026 were $43.1 million, a 23.6% decrease from $56.4 million in Q1 2025 [18] - Indirect segment revenues totaled $8.6 million, a 25.6% decrease from $11.5 million in the prior year [18] - The indirect segment showed a bright spot, over delivering plan by double digits due to key initiatives [13] Market Data and Key Metrics Changes - E-commerce revenues were stronger, particularly in online outlet and Target Marketplace [12] - The company successfully diversified wholesale accounts, including new partnerships with Costco and Urban Outfitters Marketplace [11] Company Strategy and Development Direction - The company is focused on transforming its business model and brand positioning through four pillars: product, brand, customer, and channel [10] - A new strategy and transformation committee has been formed to refine the company's strategic direction and growth initiatives [5] - The company aims to restore brand relevance with younger consumers while simplifying its operating model for greater efficiency [8] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by macroeconomic pressures affecting customer behavior, particularly by income level [14] - The company is suspending prior year guidance due to uncertainties surrounding the consumer environment [21] - Management expressed optimism about the potential for improved performance and transformation in the future [23] Other Important Information - The company completed the sale of Pura Vida, classifying its operations as discontinued [16] - The leadership transition includes the departure of the current CEO and the appointment of an interim Executive Chairman [4][5] Q&A Session Summary - No specific questions and answers were provided in the transcript, indicating a focus on prepared remarks rather than an interactive Q&A session.