Vera Bradley(US:VRA)2025-06-11 18:34PART I. FINANCIAL INFORMATION Item 1. Financial Statements (unaudited) The unaudited statements reflect a quarterly net loss of $33.5 million, heavily impacted by the sale and reclassification of the Pura Vida business as a discontinued operation - On March 31, 2025, the company completed the sale of its Pura Vida business, now classified as discontinued operations with prior period data retrospectively adjusted3439 Condensed Consolidated Statements of Operations Highlights (Thirteen Weeks Ended May 3, 2025 vs May 4, 2024) | Metric | Thirteen Weeks Ended May 3, 2025 (in thousands) | Thirteen Weeks Ended May 4, 2024 (in thousands) | | :--- | :--- | :--- | | Net Revenues | $51,652 | $67,948 | | Gross Profit | $22,767 | $34,040 | | Operating Loss from Continuing Operations | $(17,857) | $(10,617) | | Net Loss from Continuing Operations | $(18,260) | $(7,604) | | Loss from Discontinued Operations | $(15,200) | $(517) | | Net Loss | $(33,460) | $(8,121) | | Diluted Net Loss Per Share | $(1.20) | $(0.26) | Condensed Consolidated Balance Sheet Highlights (As of May 3, 2025 vs Feb 1, 2025) | Metric | May 3, 2025 (in thousands) | February 1, 2025 (in thousands) | | :--- | :--- | :--- | | Cash and cash equivalents | $11,281 | $28,628 | | Inventories | $99,151 | $91,430 | | Total Assets | $267,940 | $306,690 | | Total Liabilities | $121,906 | $127,735 | | Total Shareholders' Equity | $146,034 | $178,955 | - Net cash used in operating activities was $17.9 million, and cash and cash equivalents decreased by $19.1 million to end the period at $11.3 million26 Notes to the Condensed Consolidated Financial Statements - The sale of Pura Vida for $3.5 million in total consideration resulted in a net loss on disposal of $15.2 million111112115 - Following the Pura Vida sale, the company now operates under two reportable segments: Vera Bradley Direct and Vera Bradley Indirect35103 Net Revenues by Segment (Thirteen Weeks Ended May 3, 2025) | Segment | Net Revenues (in thousands) | % of Total | | :--- | :--- | :--- | | VB Direct | $43,083 | 83.4% | | VB Indirect | $8,569 | 16.6% | | Total | $51,652 | 100.0% | - The company has a $75.0 million asset-based revolving credit agreement with no borrowings outstanding as of May 3, 20257379 - A new $30.0 million share repurchase program was approved, with no repurchases made during the quarter9495 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations Management discusses poor quarterly performance due to macroeconomic pressures, a 24.0% revenue decline, ongoing 'Project Restoration' initiatives, and significant leadership changes - The company announced the departure of its CEO and CFO, appointing an interim Executive Chairman and a new CFO124125126 - The company is advancing its 'Project Restoration' strategy, focusing on expense management and streamlining the organization121122 Comparable Sales Performance (Thirteen Weeks Ended May 3, 2025) | Metric | YoY Change | | :--- | :--- | | Comparable Sales (including e-commerce) | (25.0)% | | Comparable Store Sales | (34.3)% | | E-commerce Sales | (11.7)% | - Gross margin decreased from 50.1% to 44.1% year-over-year, impacted by channel mix shifts and higher shipping costs142 - SG&A expenses decreased by $4.3 million but increased as a percentage of revenue to 79.0% from 66.4%143 Item 3. Quantitative and Qualitative Disclosures About Market Risk The company reports no material changes to its market risks since its last Annual Report on Form 10-K - As of May 3, 2025, there were no material changes to the market risks described in the company's most recent Annual Report on Form 10-K169 Item 4. Controls and Procedures Management concluded that disclosure controls and procedures were effective, with no material changes to internal controls during the quarter - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of May 3, 2025170 - No changes in internal control over financial reporting occurred during the quarter that have materially affected, or are reasonably likely to materially affect, internal controls171 PART II. OTHER INFORMATION Item 1. Legal Proceedings The company is involved in routine legal proceedings, primarily for intellectual property protection, which are not expected to have a material adverse impact - The company is subject to various routine legal proceedings, including lawsuits to police its intellectual property rights172 - Management does not believe any of these claims would have a material adverse impact on the company at this time173 Item 1A. Risk Factors This section confirms no material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K - There have been no material changes to the risk factors previously set forth in the Company's Annual Report on Form 10-K174 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds The company reports no shares were repurchased during the quarter under its new $30.0 million share repurchase program - A share repurchase program authorizing up to $30.0 million is in effect from December 2024 to December 2027175 - No purchases were made under the 2024 Share Repurchase Program as of May 3, 2025176 Item 5. Other Information No directors or executive officers adopted or terminated any Rule 10b5-1 trading plans during the reported quarter - During the thirteen weeks ended May 3, 2025, no directors or executive officers adopted or terminated any Rule 10b5-1(c) trading plans177 Item 6. Exhibits This section lists filed exhibits, including executive compensation plans, Sarbanes-Oxley certifications, and XBRL data files - A list of exhibits filed with the report is provided, including compensation plans, CEO/CFO certifications, and XBRL data files178