Vera Bradley(VRA)2025-03-28 16:48Financial Performance - For fiscal 2025, net revenues decreased by $98.8 million, or 21.0%, to $372.0 million from $470.8 million in fiscal 2024[245]. - Gross profit for fiscal 2025 was $186.8 million, representing 50.2% of net revenues, compared to $256.4 million or 54.5% in fiscal 2024[243]. - Selling, general, and administrative expenses (SG&A) for fiscal 2025 were $223.8 million, accounting for 60.2% of net revenues, compared to $241.5 million or 51.3% in fiscal 2024[243]. - Operating loss for fiscal 2025 was $(42.4) million, a decrease of $52.8 million, or 505.7%, from operating income of $10.4 million in fiscal 2024[254]. - Net loss for fiscal 2025 was $(62.2) million, a decrease of $70.0 million from net income of $7.8 million in fiscal 2024[262]. - Gross profit for fiscal 2025 decreased by $69.6 million, or 27.1%, to $187.8 million, with gross profit as a percentage of net revenues dropping to 50.2% from 54.5%[250]. - SG&A expenses decreased by $17.7 million, or 7.3%, to $223.8 million, representing 60.2% of net revenues compared to 51.3% in fiscal 2024[251]. Revenue Breakdown - The VB Direct segment generated $257.6 million in revenues for fiscal 2025, making up 69.3% of total net revenues[244]. - Pura Vida segment revenues decreased to $53.2 million in fiscal 2025, representing 14.3% of total net revenues[244]. - Comparable sales, including e-commerce, decreased by 16.6% in fiscal 2025[244]. - Vera Bradley comparable sales decreased by $49.6 million, or 16.6%, including a 22.2% decrease in comparable store sales and a 7.3% decrease in e-commerce sales[246]. Store Operations - The company closed six stores and opened eight stores during fiscal 2025, ending the year with 126 total stores[244]. Impairment Charges - The impairment of goodwill and intangible assets was $6.2 million in fiscal 2025, compared to $5.4 million in fiscal 2024[243]. - An impairment charge of $6.2 million was recorded for the Pura Vida brand in the fourth quarter of fiscal 2025[284]. - An impairment charge of $5.4 million was recorded for the Pura Vida brand during fiscal 2024[285]. - Impairment charges of $44.3 million and $25.0 million were recorded during fiscal 2023 for goodwill and the Pura Vida brand, respectively[286]. - Impairment charges for long-lived assets were $2.6 million and $1.4 million for the periods ended February 1, 2025, and January 28, 2023, respectively[280]. - Goodwill was fully impaired during fiscal 2023, resulting in no balance as of February 1, 2025[282]. Cash Flow and Financing - Net cash used in operating activities was $(14.1) million in fiscal 2025, compared to net cash provided of $48.0 million in fiscal 2024[268]. - Net cash used in investing activities was $10.4 million in fiscal 2025, a decrease from $13.8 million in fiscal 2024[270]. - Net cash used in financing activities increased to $22.5 million in fiscal 2025 from $3.5 million in fiscal 2024, primarily due to increased stock repurchases[271]. - The company has access to a $75.0 million asset-based revolving credit agreement, with no debt outstanding as of February 1, 2025[264]. - The Credit Agreement allows for a revolving credit commitment of $75.0 million, with interest rate changes impacting annual interest expense by approximately $0.2 million for each quarter point[287]. Strategic Initiatives - The company continued to implement strategic price increases across both brands to mitigate inflationary pressures[239]. - The company is focused on enhancing customer experience and optimizing its product and pricing strategy based on selling data and customer feedback[225]. Inventory Management - The balance of inventory adjustments was $7.7 million and $8.1 million for the fiscal years ended February 1, 2025, and February 3, 2024, respectively[278]. - The company sources a majority of its finished goods from suppliers in various countries, with purchases and sales primarily denominated in U.S. dollars, mitigating foreign exchange rate risk[288].