Vera Bradley(US:VRA)2023-06-07 19:28Financial Performance - For the thirteen weeks ended April 29, 2023, net revenues decreased by $4.1 million, or 4.2%, to $94.4 million compared to $98.5 million in the prior year[148]. - Gross profit for the same period was $51.7 million, representing a gross margin of 54.8%, compared to $52.5 million and a gross margin of 53.3% in the prior year[146]. - Operating loss for the thirteen weeks ended April 29, 2023, was $6.4 million, an improvement from an operating loss of $8.2 million in the prior year[146]. - Net loss for the thirteen weeks ended April 29, 2023, decreased by $2.0 million to $(4.7) million compared to the prior-year period[163]. - Net cash used in operating activities was $8.8 million, a decrease from $11.1 million in the prior-year period, primarily due to a decrease in net loss[170]. Segment Performance - The VB Direct segment generated revenues of $58.9 million, while the VB Indirect segment brought in $15.4 million, and the Pura Vida segment contributed $20.1 million[146]. - For the thirteen weeks ended April 29, 2023, net revenues in the VB Direct segment decreased by $2.7 million, or 4.4%, to $58.9 million[149]. - VB Indirect segment net revenues decreased by $1.6 million, or 9.4%, to $15.4 million, primarily due to a one-time key account order that did not recur[150]. - Pura Vida segment net revenues increased by $0.3 million, or 1.2%, to $20.1 million, driven by four non-comparable retail stores opened in the prior year[151]. Expenses and Cost Management - Selling, general, and administrative expenses (SG&A) were $58.5 million, accounting for 62.0% of net revenues, compared to $60.9 million or 61.9% in the prior year[146]. - The company recorded severance charges of approximately $2.0 million within SG&A expenses during the thirteen weeks ended April 29, 2023[126]. - SG&A expenses decreased by $2.4 million, or 4.0%, to $58.5 million, but as a percentage of net revenues, SG&A expenses increased to 62.0%[153]. - Operating loss decreased by $1.8 million to $(6.4) million, with an operating loss percentage of (6.8)%[156]. Strategic Initiatives - The company is implementing cost savings initiatives expected to be fully realized by fiscal 2025, including reductions in retail store efficiencies and marketing expenses[124]. - The company has begun Project Restoration, focusing on four key pillars: Consumer, Brand, Product, and Channel, to drive long-term profitable growth[123]. Market Conditions - The company experienced challenges from higher tariffs and inflationary pressures, impacting consumer discretionary spending and overall financial condition[127]. Cash Flow and Investments - Net cash used in investing activities increased to $10.8 million, primarily due to the purchase of the remaining 25% interest in Pura Vida for $10.0 million[172]. - Capital expenditures for fiscal 2024 are expected to be approximately $5.0 million[173]. Accounting and Risk - No significant changes to critical accounting policies and estimates as of April 29, 2023[180]. - No material change in market risks as of April 29, 2023[183].