Vera Bradley(VRA) - 2025 Q3 - Quarterly Results

Financial Performance - Consolidated net revenues for the third quarter totaled $80.6 million, a decrease of 29.8% from $115.0 million in the prior year[5]. - The consolidated net loss for the third quarter was ($12.8) million, or ($0.46) per diluted share, compared to a net income of $5.1 million, or $0.16 per diluted share in the prior year[5][7]. - For the nine months ended November 2, 2024, consolidated net revenues were $272.0 million, down from $337.5 million in the prior year[8]. - The company expects consolidated net revenues of approximately $385 million for Fiscal 2025, down from $470.8 million in Fiscal 2024[31]. - Consolidated diluted EPS of approximately ($0.25) based on diluted weighted-average shares outstanding of 29.7 million, down from $0.55 last year[34]. - Net revenues for the thirteen weeks ended November 2, 2024, were $80.6 million, down from $115 million for the same period last year[54]. - The net loss for the third quarter of fiscal 2025 was $12,800,000, compared to a net income of $5,118,000 in the same quarter of fiscal 2024[57][58]. Segment Performance - Vera Bradley Direct segment revenues decreased by 27.4% to $52.5 million, while Indirect segment revenues fell by 27.9% to $18.0 million[11][12]. - Pura Vida segment revenues decreased by 42.9% to $10.1 million, attributed to declines in both ecommerce and wholesale sales[13]. Profitability Metrics - Consolidated gross profit for the third quarter was $43.6 million, representing 54.1% of net revenues, down from 54.8% in the prior year[14]. - Consolidated gross profit percentage for Fiscal 2025 is expected to be approximately 52.5%, compared to 54.5% in Fiscal 2024[32]. - Gross profit for the thirteen weeks ended November 2, 2024, was $43.6 million, compared to $63 million for the same period last year[54]. - Total operating income (loss) for the third quarter of fiscal 2025 was $(10,474,000), compared to $6,786,000 in the same quarter of fiscal 2024[57][58]. Expenses - Consolidated SG&A expense totaled $54.2 million, or 67.3% of net revenues, compared to 49.0% in the prior year[15]. - Consolidated SG&A expense is anticipated to be approximately $213 million for Fiscal 2025, down from $234.7 million in Fiscal 2024[33]. Cash Flow and Capital Expenditures - Operating cash flows showed a significant decrease, with net cash used in operating activities at $(35,757,000) compared to $21,058,000 in the previous quarter[56]. - Net capital spending of approximately $13 million compared to $3.8 million in the prior year, reflecting investments in new and remodeled stores and technology enhancements[35]. - Cash and cash equivalents at the end of the period were $13,711,000, down from $52,266,000 at the end of the previous quarter[56]. - The total cash used in investing activities was $(6,050,000), compared to $(12,546,000) in the previous quarter[56]. Balance Sheet Highlights - Total current assets decreased to $184.8 million from $225.9 million in the previous year[52]. - Total liabilities increased to $133.8 million from $120.9 million in the previous year[52]. - The company reported impairment charges of $2,181,000 in the third quarter of fiscal 2025, which contributed to the net loss[57]. - The company incurred $21,179,000 in common stock repurchases during the financing activities in the third quarter of fiscal 2025[56]. - The company reported a significant increase in accounts receivable, with a change of $(7,182,000) in the third quarter of fiscal 2025[56]. Tax Impact - The company’s effective tax rate adjustments resulted in a tax impact of $(1,857,000) for the thirty-nine weeks ended November 2, 2024[60].