{"id":859484,"date":"2025-06-11T08:16:37","date_gmt":"2025-06-11T12:16:37","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/vera-bradley-announces-first-quarter-fiscal-year-2026-results\/"},"modified":"2025-06-11T08:16:37","modified_gmt":"2025-06-11T12:16:37","slug":"vera-bradley-announces-first-quarter-fiscal-year-2026-results","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/vera-bradley-announces-first-quarter-fiscal-year-2026-results\/","title":{"rendered":"Vera Bradley Announces First Quarter Fiscal Year 2026 Results"},"content":{"rendered":"
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\n First quarter consolidated net revenues totaled $51.7 million<\/em>\n <\/p>\n

\n Financial condition remains strong with $86 million in liquidity and no debt<\/em>\n <\/p>\n

FORT WAYNE, Ind., June 11, 2025 (GLOBE NEWSWIRE) — Vera Bradley, Inc. (Nasdaq: VRA) (the \u201cCompany\u201d) today announced its financial results for the first quarter of the fiscal year ending January 31, 2026 (\u201cFiscal 2026\u201d).<\/p>\n

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\n First Quarter Comments<\/u>
\n <\/strong>\n <\/p>\n

Jackie Ardrey, Chief Executive Officer commented, \u201cOur first quarter results were disappointing as top line and profitability trends from the previous several quarters continued. In addition to addressing consumer feedback on product styles and functionality from last summer\u2019s relaunch, we remain committed to ‘being where she shops’ and are working on diversification of our wholesale partnerships. While there is significant work to be done on many fronts in order to return the Company\u2019s results to a stable and positive growth story, the teams are committed to doing just that.\u201d<\/p>\n

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\n Summary of Financial Performance for the First Quarter<\/u>
\n <\/strong>\n <\/p>\n

Consolidated net revenues from continuing operations totaled $51.7 million compared to $67.9 million in the prior year first quarter ended May 4, 2024.<\/p>\n

For the current year first quarter, Vera Bradley, Inc.’s net loss from continuing operations totaled ($18.3) million, or ($0.66) per diluted share. These results included pre-tax charges of $1.0 million of property, plant, & equipment impairment charges; $1.0 for PO cancellation fees; $1.0 million of professional fees associated with the sale of Pura Vida; $0.3 million of inventory write-offs associated with the sale of Pura Vida; $0.7 million of consulting and professional fees associated with strategic initiatives and shareholder matters; $0.3 million of severance charges; and total tax impact of $3.9 million adjusted to reflect the non-GAAP tax impacts. The net-of-tax impact totaled $8.2 million. On a non-GAAP basis, Vera Bradley, Inc.\u2019s first quarter net loss from continuing operations totaled ($10.1) million, or ($0.36) per diluted share.<\/p>\n

For the prior year first quarter, Vera Bradley, Inc.\u2019s net loss from continuing operations totaled ($7.6) million, or ($0.25) per diluted share. These results included pre-tax charges of $0.7 million for one-time vendor charges, $0.4 million of severance charges, $0.1 million of consulting and professional fees primarily associated with strategic initiatives, and total tax impacts of ($0.2) million associated with the pre-tax items listed above, resulting in a $1.0 million net-of-tax impact. On a non-GAAP basis, Vera Bradley, Inc.\u2019s first quarter net loss from continuing operations totaled ($6.6) million, or ($0.22) per diluted share.<\/p>\n

On March 11, 2025, the Company entered into an Interest Purchase Agreement (the \u201cAgreement\u201d) to sell one hundred percent (100%) of Creative Genius, Inc., which operates under the name Pura Vida Bracelets. The sale consummated on March 31, 2025. As a result, the operations of Pura Vida have been classified as discontinued operations in the consolidated financial statements. Prior period amounts have been retrospectively adjusted to conform to the current period presentation. Unless otherwise specified, disclosures in this earnings release reflect continuing operations only.<\/p>\n

Following the sale, Pura Vida is no longer included in the Company\u2019s consolidated financial results.<\/p>\n

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\n First Quarter Details<\/u>
\n <\/strong>\n <\/p>\n

Current year first quarter Vera Bradley Direct segment revenues totaled $43.1 million, a 23.6% decrease from $56.4 million in the prior year first quarter. Comparable sales declined 25.0% in the first quarter, driven by traffic and conversion declines predominantly in our full-line and outlet stores. During the first quarter, the Company also opened two full-line stores and closed two underperforming full-line stores.<\/p>\n

Vera Bradley Indirect segment revenues totaled $8.6 million, a 25.6% decrease over $11.5 million in the prior year first quarter. The decrease was primarily related to a decline in specialty and key account orders.<\/p>\n

First quarter gross profit totaled $22.8 million, or 44.1% of net revenues, compared to $34.0 million, or 50.1% of net revenues, in the prior year. On a non-GAAP basis, current year gross profit totaled $24.6 million, or 47.5 % of net revenues, compared to $34.8 million, or 51.3% of net revenues in the prior year. The decrease in consolidated gross profit as a percentage of net revenues in the first quarter resulted from channel shift from brick & mortar stores to online sites (which also contributed to increased outbound freight cost).<\/p>\n

First quarter consolidated selling, general, and administrative (\u201cSG&A\u201d) expense totaled $40.8 million, or 79.0% of net revenues, compared to $45.1 million, or 66.4% of net revenues, in the prior year. On a non-GAAP basis, current year consolidated SG&A expense totaled $38.3 million, or 74.2% of net revenues, compared to $44.7 million, or 65.7% of net revenues, in the prior year. The decrease in non-GAAP SG&A expense resulted from delivery of cost reduction initiatives along with reduced variable costs.<\/p>\n

The Company\u2019s first quarter operating loss from continuing operations totaled ($17.9) million, or (34.6%) of net revenues, compared to ($10.6) million, or (15.6%) of net revenues, in the prior year first quarter. On a non-GAAP basis, the Company\u2019s current year operating loss from continuing operations totaled ($13.6) million, or (26.3%) of net revenues, compared to ($9.4) million, or (13.8%) of net revenues, in the prior year.<\/p>\n

By segment:<\/p>\n