Vera Bradley(VRA) - 2025 Q4 - Annual Results

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]