Vera Bradley Reports 24% Revenue Decline and Increased Operating Loss in Latest Quarter

Vera Bradley, Inc. reported a significant decline in financial performance for the thirteen weeks ended May 3, 2025, with net revenues of $51.7 million, a decrease of 24% from $67.9 million in the same period last year. The company's gross profit also fell to $22.8 million, down 33.1% year-over-year, resulting in a gross margin of 44.1%, compared to 50.1% in the prior year. The operating loss from continuing operations increased to $17.9 million, up from a loss of $10.6 million in the previous year, reflecting a challenging retail environment and reduced consumer spending.

The decline in revenues was primarily driven by a 25% decrease in comparable sales, which included a 34.3% drop in comparable store sales and an 11.7% decrease in e-commerce sales. The VB Direct segment, which includes sales through full-line and outlet stores, saw revenues decrease by $13.3 million, while the VB Indirect segment, which encompasses sales to specialty retailers, experienced a $3 million decline. The company attributed these declines to reduced traffic and conversion rates across its retail channels.

In terms of strategic developments, Vera Bradley completed the sale of its subsidiary, Creative Genius, which operated under the name Pura Vida, on March 31, 2025. This transaction has been classified as discontinued operations in the financial statements, resulting in a net loss from discontinued operations of $15.2 million for the quarter. The company is also undergoing a leadership transition, with CEO Jacqueline Ardrey departing and Ian Bickley stepping in as Executive Chairman during the search for a new CEO.

Operationally, Vera Bradley's total store count decreased to 126 from 123 year-over-year, with two new stores opened and two closed during the quarter. The company reported a decrease in average net revenues per gross square foot to $58, down from $84 in the prior year. The company continues to focus on cost management initiatives, which have led to a reduction in selling, general, and administrative expenses by 9.5% to $40.8 million, although these expenses still represented 79% of net revenues.

Looking ahead, Vera Bradley remains cautious about the economic landscape, particularly concerning inflation and consumer spending. The company is committed to its long-term strategic initiative, Project Restoration, aimed at transforming its business model and brand positioning. Despite the current challenges, management is focused on adapting to market conditions and enhancing operational efficiencies to position the company for future growth.