{"id":918752,"date":"2025-12-11T09:35:10","date_gmt":"2025-12-11T14:35:10","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/vera-bradley-announces-third-quarter-fiscal-year-2026-results\/"},"modified":"2025-12-11T09:35:10","modified_gmt":"2025-12-11T14:35:10","slug":"vera-bradley-announces-third-quarter-fiscal-year-2026-results","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/vera-bradley-announces-third-quarter-fiscal-year-2026-results\/","title":{"rendered":"Vera Bradley Announces Third Quarter Fiscal Year 2026 Results"},"content":{"rendered":"

\nReclaiming Vera Bradley\u2019s joyful optimism, while fueling operational excellence
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FORT WAYNE, Ind., Dec. 11, 2025 (GLOBE NEWSWIRE) — Vera Bradley, Inc. (Nasdaq: VRA) (the \u201cCompany\u201d) today announced its financial results for the third quarter and nine month period ended November 1, 2025.<\/p>\n

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\n Third Quarter Comments<\/u>
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\u201cOur third quarter results demonstrate progress in our comprehensive transformation strategy, which we have now branded as Project Sunshine, our five-pillar initiative anchored on reclaiming Vera Bradley\u2019s joyful optimism while fueling operational excellence. Project Sunshine encompasses sharpening our brand focus, resetting our go-to-market approach, rewiring our digital ecosystem, implementing Outlet 2.0, and reimagining how we work as an organization,\u201d said Ian Bickley, Executive Chairman of Vera Bradley.<\/p>\n

\u201cWith third quarter revenues of $62.3 million, our Direct Segments registered sequential improvement across key metrics including positive comparable Brand channel sales for five months from back-to-school through Black Friday weekend. The successful return of iconic styles like the Original 100 Bag, the Vera and Glenna Totes also give us confidence we\u2019re moving Vera Bradley in the right direction. While significant work remains, these early wins and our continued focus on profitability and cash generation position us well for sustainable growth,\u201d concluded Bickley.<\/p>\n

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\n Summary of Financial Performance for the Third Quarter<\/u>
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Consolidated net revenues from continuing operations totaled $62.3 million compared to $70.5 million in the prior year third quarter ended November 2, 2024.<\/p>\n

For the current year third quarter, Vera Bradley, Inc.’s net loss from continuing operations totaled ($12.4) million, or ($0.44) per diluted share. GAAP results from continuing operations for the quarter were significantly affected by a $5.9 million inventory write-down related to the Brands\u2019 strategic product shift toward cotton and heritage prints, along with a $4 million write-off of television media credits which were acquired to support the Company\u2019s Project Restoration efforts and won\u2019t be fully utilized with the focus on digital and performance marketing. These items had a ($0.35) per diluted share impact on our results from continuing operations. Additionally, we incurred non-GAAP pre-tax charges comprised of $0.6 million for severance, $0.4 million for transformation initiatives, $0.3 million for consulting and professional fees associated with strategic initiatives, ($0.2) million for a true up of PO cancellation fees, and total tax impact of $3.0 million adjusted to reflect the tax benefit calculated using a 26% statutory rate applied to the non-GAAP pre-tax loss. The net-of-tax impact totaled $4.1 million. On a non-GAAP basis, Vera Bradley, Inc.\u2019s third quarter net loss from continuing operations totaled ($8.3) million, or ($0.30) per diluted share.\u00a0<\/p>\n

For the prior year third quarter, Vera Bradley, Inc.\u2019s net loss from continuing operations totaled ($13.3) million, or ($0.47) per diluted share. These results included pre-tax charges comprised of $2.1 million of property, plant & equipment (\u201cPPE\u201d) impairment charges, $0.7 million for Project Restoration initiatives, $0.2 million for severance, $0.2 million for consulting and professional fees associated with strategic initiatives, and total tax impact of $6.5 million adjusted to reflect the tax benefit calculated using a 26% statutory rate applied to the non-GAAP pre-tax loss. The net-of-tax impact totaled $9.7 million. On a non-GAAP basis, Vera Bradley, Inc.\u2019s third quarter net loss from continuing operations totaled ($3.7) million, or ($0.13) per diluted share.<\/p>\n

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\n Summary of Financial Performance for the Nine Months<\/u>
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Consolidated net revenues from continuing operations totaled $184.8 million compared to $232.4 million in the prior year third quarter ended November 2, 2024.<\/p>\n

For the current year nine months, Vera Bradley, Inc.’s net loss from continuing operations totaled ($35.3) million, or ($1.26) per diluted share. GAAP results from the nine months were significantly impacted by the previously mentioned $5.9 million inventory write-down and $4 million write-off of media credits. Additionally, we incurred non-GAAP pre-tax charges comprised of $3.9 million for severance, $1.7 million for consulting and professional fees associated with strategic initiatives and shareholder matters, $1.1 million for professional fees associated with the sale of Pura Vida, $1.0 million for PPE impairment charges, $0.7 million for transformation initiatives, $0.6 million for PO cancellation fees, $0.3 million for inventory write-offs associated with the sale of Pura Vida, and a total tax impact of $7.1 million adjusted to reflect the tax benefit calculated using a 26% statutory rate applied to the non-GAAP pre-tax loss. The net-of-tax impact totaled $16.4 million. On a non-GAAP basis, Vera Bradley, Inc.\u2019s current year net loss from continuing operations for the nine months totaled ($18.9) million, or ($0.67) per diluted share.<\/p>\n

For the prior year nine months, Vera Bradley, Inc.\u2019s net loss from continuing operations totaled ($13.4) million, or ($0.46) per diluted share. These results included pre-tax charges comprised of $2.1 million for PPE impairment charges, $1.0 million for severance, $1.0 million for Project Restoration initiatives, $0.7 million for one-time vendor charges, $0.4 million for consulting and professional fees associated with strategic initiatives, and a total tax impact of $0.5 million adjusted to reflect the tax benefit calculated using a 26% statutory rate applied to the non-GAAP pre-tax loss. The net-of-tax impact totaled $5.7 million. On a non-GAAP basis, Vera Bradley, Inc.\u2019s prior year net loss from continuing operations for the nine months totaled ($7.7) million, or ($0.26) per diluted share.<\/p>\n

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\n Third Quarter Details<\/u>
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Vera Bradley Direct segment revenues totaled $49.7 million, a 5.3% decrease from $52.5 million in the prior year third quarter. Comparable sales declined 5.8% in the third quarter, primarily driven by traffic and conversion declines in our outlet channels. This represents the Company\u2019s third quarter of sequential comparable sales improvement. During the third quarter, the Company closed one underperforming full-line store.<\/p>\n

Vera Bradley Indirect segment revenues totaled $12.6 million, a 30.2% decrease from $18.0 million in the prior year third quarter. The decrease was primarily related to a decline in specialty and key account orders, which were partially offset by increased liquidation sales.<\/p>\n

Gross profit totaled $26.2 million, or 42.1% of net revenues, compared to $38.4 million, or 54.5% of net revenues, in the prior year. On a non-GAAP basis, current year gross profit totaled $26.0 million, or 41.7% of net revenues. The year-over-year decrease in consolidated gross profit as a percentage of net revenues was primarily driven by the previously mentioned inventory write-down as well as additional duty expenses, partially offset by pricing improvements.<\/p>\n

Selling, general, and administrative (\u201cSG&A\u201d) expense totaled $38.7 million, or 62.1% of net revenues, compared to $46.7 million, or 66.3% of net revenues, in the prior year. On a non-GAAP basis, current year consolidated SG&A expense totaled $37.4 million, or 60.0% of net revenues, compared to $43.6 million, or 61.8% of net revenues, in the prior year. The decrease in non-GAAP SG&A expense primarily due to lower compensation expenses and other cost reduction initiatives which were partially offset by the previously mentioned media credit write-off.<\/p>\n

The Company\u2019s third quarter operating loss from continuing operations totaled ($12.2) million, or (19.6%) of net revenues, compared to ($8.2) million, or (11.6%) of net revenues, in the prior year third quarter. On a non-GAAP basis, the Company\u2019s current year operating loss from continuing operations totaled ($11.1) million, or (17.8%) of net revenues, compared to ($5.0) million, or (7.1%) of net revenues, in the prior year.<\/p>\n

By segment:<\/p>\n