Vera Bradley, Inc. (NASDAQ:VRA) stock fell Thursday after the retailer’s turnaround momentum was eclipsed by a steep margin collapse and deeper operating losses, signaling that its refreshed lineup and relaunch of iconic bags have yet to reignite demand across key channels.The company posted an adjusted third-quarter loss of 30 cents per share, wider than the Street’s expected 11-cent loss.Quarterly sales of $62.253 million beat the Street view of $61.686 million.Also Read: House Passes $900 Billion Defense ...

Vera Bradley (NasdaqGS:VRA) Q3 2026 Earnings Call December 11, 2025 08:30 AM ET Company ParticipantsMartin Layding - CFOMark Dely - Chief Administrative OfficerIan Bickley - Executive ChairmanConference Call ParticipantsEric Beder - AnalystMartin LaydingWelcome to Vera Bradley's third quarter fiscal 2026 earnings conference call. At this time, all participants are in listen-only mode. The question-and-answer session will follow the formal presentation. If anyone today should require operator assistance, ple ...

Vera Bradley (NasdaqGS:VRA) Q3 2026 Earnings Call December 11, 2025 08:30 AM ET Company ParticipantsMartin Layding - CFOMark Dely - Chief Administrative OfficerIan Bickley - Executive ChairmanConference Call ParticipantsEric Beder - AnalystOperatorWelcome to Vera Bradley's third quarter fiscal 2026 earnings conference call. At this time, all participants are in listen-only mode. The question-and-answer session will follow the formal presentation. If anyone today should require operator assistance, please pr ...

Financial Data and Key Metrics Changes - For Q3 2026, the company reported revenues of $62.3 million, an 11.7% decrease from the prior year, compared to a 24.6% decline in Q2 [8][26] - The net loss from continuing operations for Q3 totaled negative $8.3 million, or negative $0.30 per diluted share, compared to negative $3.7 million, or negative $0.13 per diluted share in the prior year [26][27] - Gross margin for Q3 was $26 million, or 41.7% of net revenues, down from 54.5% in the prior year, primarily due to a $5.9 million inventory write-down [29][30] Business Line Data and Key Metrics Changes - Direct segment revenues were $49.7 million, a 5.3% decrease from $52.5 million in the prior year, with comparable sales declining 5.8% [27][28] - Indirect segment revenues totaled $12.6 million, a 30.2% decrease from $18 million in the prior year, primarily due to a decline in specialty and key account orders [29] Market Data and Key Metrics Changes - The company experienced a sequential improvement in key metrics across nearly all direct segment channels, with positive comparable channel sales extending from back-to-school through Black Friday [8][28] - Inventory decreased year-over-year by 24.3% to $82.9 million, compared to $109.6 million at the end of the previous year [31][32] Company Strategy and Development Direction - The company is focused on five strategic pillars under "Project Sunshine," aimed at brand rejuvenation, operational excellence, and customer engagement [5][9] - The strategy includes sharpening brand focus, resetting the go-to-market approach, rewiring the digital ecosystem, implementing Outlet 2.0, and reimagining organizational structure for sustainable growth [5][6][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the transformation strategy, emphasizing the importance of product innovation and customer engagement to drive growth [3][39] - The company is committed to disciplined expense control and inventory management during the turnaround period, aiming for improved performance and shareholder value [32][24] Other Important Information - The company is in the process of searching for a new CEO, with a focus on finding the right leader to guide the transformation [25] - The recent appointment of a Chief Brand Officer is expected to enhance marketing and digital commerce efforts [54] Q&A Session Summary Question: What key signposts should be expected as Project Sunshine progresses into Q4 and 2026? - Management highlighted that product focus is crucial, with significant impacts expected from spring-summer 2026 product launches [38][39] Question: What has been the consumer response to Outlet 2.0 stores? - Early feedback has been positive regarding the store environment and customer journey, with performance in line with stores having more SKUs [44][45] Question: How should inventory opportunities be approached moving forward? - Management sees potential for improvement in inventory productivity, aiming to increase inventory turns from less than two to a range of two to three over the next 12-18 months [51] Question: How long will it take to attract a younger customer demographic? - Management acknowledged that it will take time but emphasized the importance of re-engaging loyal customers while also targeting younger demographics through effective marketing and product offerings [52][54]

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]