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].

Core Viewpoint - Vera Bradley, Inc. has announced a strategic cost efficiency initiative aimed at reducing company costs by approximately $20 million annually starting in fiscal year 2026 [2][4]. Cost Efficiency Initiative - The initiative is part of "Project Restoration," focusing on sharpening business discipline and prioritizing resources to restore profitability and increase shareholder value [3]. - The cost savings will primarily come from a thorough review of the company's expense structure, leading to a significant reduction in outside vendor contracts and spending [3]. - The anticipated savings will have a full-year impact in fiscal year 2026, with actions expected to commence early in the year [4]. Financial Impact - The efficiency savings are expected to benefit various areas of the organization, particularly selling, general, and administrative expenses, which will account for approximately 75% of the savings, while the remainder will affect gross profit [5]. - The company plans to provide further guidance for fiscal year 2026 in March 2025, coinciding with the release of its Fourth Quarter financial results [6].

Group 1 - Vera Bradley (NASDAQ: VRA) has been experiencing a long-term decline in share price for over 10 years, even before recent challenges in the luxury market [1] - The company has a 40-year history in the bag and accessories industry, indicating its established presence [1] - The price chart of Vera Bradley reflects a significant downward trend over the past 25 years in the financial/investment industry [1] Group 2 - The article highlights the author's background in financial performance analytics, trading, and banking, which adds credibility to the analysis of Vera Bradley [1] - The author expresses a personal interest in behavioral finance and investment narratives, suggesting a qualitative approach to investment analysis [1] - The article does not provide specific financial metrics or forecasts for Vera Bradley, focusing instead on the historical performance and context of the company [1]

Financial Performance - Net revenues for the thirteen weeks ended November 2, 2024, were $80.578 million, a decrease from $114.987 million for the same period in 2023, representing a decline of approximately 29.9%[134] - Gross profit for the thirteen weeks ended November 2, 2024, was $43.609 million, down from $63.007 million in the prior year, reflecting a gross profit margin of 54.1% compared to 54.8%[134] - The company reported an operating loss of $10.474 million for the thirteen weeks ended November 2, 2024, compared to an operating income of $6.786 million for the same period in 2023[134] - Net loss for the thirteen weeks ended November 2, 2024, was $12.800 million, compared to a net income of $5.118 million in the prior year, resulting in a net loss margin of 15.9%[134] - For the thirteen weeks ended November 2, 2024, net revenues decreased by $34.4 million, or 29.9%, to $80.6 million from $115.0 million in the comparable prior-year period[138] - For the thirty-nine weeks ended November 2, 2024, net revenues decreased by $65.5 million, or 19.4%, to $272.0 million from $337.5 million in the comparable prior-year period[154] Segment Performance - In the VB Direct segment, net revenues decreased by $19.8 million, or 27.4%, to $52.5 million, with comparable sales down 27.2%, including a 32.6% decrease in comparable store sales and a 17.5% decrease in e-commerce sales[139] - The VB Indirect segment saw net revenues decrease by $7.0 million, or 27.9%, to $18.0 million, primarily due to a decline in specialty and key account orders[140] - Pura Vida segment net revenues decreased by $7.6 million, or 42.9%, to $10.1 million, primarily due to a decline in e-commerce and wholesale sales[141] - In the VB Direct segment for the thirty-nine weeks, net revenues decreased by $35.8 million, or 16.5%, to $181.1 million, with comparable sales down 16.0%[155] - Pura Vida segment net revenues for the thirty-nine weeks decreased by $23.3 million, or 37.1%, to $39.6 million, primarily due to a decline in e-commerce and wholesale sales[157] Cost and Expense Management - Selling, general, and administrative expenses (SG&A) for the thirteen weeks ended November 2, 2024, were $54.220 million, which is 67.3% of net revenues, compared to 49.0% in the same period last year[134] - SG&A expenses decreased by $2.2 million, or 3.8%, to $54.2 million, but as a percentage of net revenues, SG&A expenses increased to 67.3% from 49.0% in the prior-year period[143] - SG&A expenses decreased by $12.7 million, or 7.3%, to $161.6 million, but as a percentage of net revenues, they increased to 59.4% from 51.6% in the prior year[159] - The company is implementing cost reduction strategies across various areas, including retail efficiencies and marketing expenses, to improve long-term profitability[116] - The company is reviewing its expense structure for additional cost reduction opportunities to support future growth[116] Operating Loss and Profitability - The company reported an operating loss of $(10.5) million for the thirteen weeks ended November 2, 2024, a decrease of $17.3 million, or 254.3%, from operating income of $6.8 million in the prior-year period[145] - Operating loss for the thirty-nine weeks ended November 2, 2024, was $(19.0) million, a decrease of $32.3 million, or 243.4%, from operating income of $13.3 million in the prior year[162] - VB Direct segment operating income decreased by $24.2 million, or 55.3%, to $19.5 million, with a margin of 10.8% compared to 20.1% in the prior year[163] - Pura Vida segment reported an operating loss of $(3.8) million, a decrease of $8.8 million, or 176.7%, from operating income of $5.0 million in the prior year[165] Cash Flow and Financial Position - Net cash used in operating activities was $35.8 million for the thirty-nine weeks ended November 2, 2024, compared to net cash provided of $21.1 million in the prior year[174] - Net cash used in investing activities was $6.1 million, a decrease from $12.5 million in the prior year, primarily due to the prior year's purchase of a 25% interest in Pura Vida[176] - Net cash used in financing activities increased to $21.9 million from $2.9 million in the prior year, mainly due to $21.2 million in common stock repurchases[177] - The company has no debt outstanding as of November 2, 2024, and has access to a $75.0 million asset-based revolving credit agreement for additional liquidity if needed[170] Market Challenges - The company continues to face challenges from higher tariffs and inflationary pressures, impacting consumer discretionary spending and leading to weakness in both outlet and full-line stores[117] Strategic Initiatives - Project Restoration was launched in July 2025, focusing on new products, store remodels, and customer marketing to drive long-term growth[115] - Impairment charges of $2.2 million were recognized for store property, plant, and equipment during the thirteen weeks ended November 2, 2024[133] Tax Rate - The effective tax rate for the thirty-nine weeks ended November 2, 2024, was 15.3%, down from 28.3% in the prior year, reflecting changes in income projections and other factors[167]