Vera Bradley Announces Third Quarter Fiscal Year 2026 Results

Core Insights - Vera Bradley, Inc. reported third quarter revenues of $62.3 million, a decrease from $70.5 million in the same period last year, indicating ongoing challenges in the market [4][5] - The company is implementing a transformation strategy called Project Sunshine, focusing on brand optimization and operational excellence [2][3] - Despite a net loss of $12.4 million for the third quarter, the company noted improvements in direct segment sales and a positive response to the return of iconic product styles [3][4] Financial Performance Summary - Third Quarter Results: Consolidated net revenues were $62.3 million, down from $70.5 million year-over-year. The net loss from continuing operations was $12.4 million, or $0.44 per diluted share, impacted by a $5.9 million inventory write-down and a $4 million media credit write-off [4][6] - Nine Month Results: For the nine months ended November 1, 2025, net revenues totaled $184.8 million, down from $232.4 million in the prior year. The net loss from continuing operations was $35.3 million, or $1.26 per diluted share [5][6] Segment Performance - Direct Segment: Revenues decreased by 5.3% to $49.7 million compared to $52.5 million in the prior year. Comparable sales declined by 5.8%, primarily due to reduced traffic in outlet channels [8][10] - Indirect Segment: Revenues fell by 30.2% to $12.6 million from $18.0 million in the previous year, attributed to a decline in specialty and key account orders [9][15] Gross Profit and Expenses - Gross Profit: Totaled $26.2 million, representing 42.1% of net revenues, down from 54.5% in the prior year, primarily due to inventory write-downs and increased duty expenses [10][16] - SG&A Expenses: Totaled $38.7 million, or 62.1% of net revenues, compared to 66.3% in the prior year, reflecting cost reduction initiatives [11][17] Operating Loss - The operating loss from continuing operations for the third quarter was $12.2 million, or 19.6% of net revenues, compared to a loss of $8.2 million, or 11.6% of net revenues, in the prior year [12][18] Balance Sheet Highlights - Cash and cash equivalents as of November 1, 2025, were $10.7 million, down from $12.3 million at the end of the previous year's third quarter. Total inventory decreased to $82.9 million from $109.6 million [20][21] Strategic Initiatives - Project Sunshine aims to enhance brand focus, improve digital capabilities, and optimize operational processes, with early signs of success noted in sales performance [2][3]