Vera Bradley Q1 2026 Earnings Report

Vera Bradley EPS Results

• Actual EPS: -$0.36
• Consensus EPS: -$0.13
• Beat/Miss: Missed by -$0.23
• One Year Ago EPS: -$0.21

Vera Bradley Revenue Results

• Actual Revenue: $51.65 million
• Expected Revenue: $53.48 million
• Beat/Miss: Missed by -$1.83 million
• YoY Revenue Growth: N/A

Vera Bradley Announcement Details

• Quarter: Q1 2026
• Date: 6/11/2025
• Time: Before Market Opens
• Conference Call Date: Wednesday, June 11, 2025
• Conference Call Time: 9:30AM ET

Vera Bradley (NASDAQ:VRA) (NASDAQ: VRA) is a premium lifestyle brand specializing in women’s handbags, travel accessories, apparel, home décor and other fashion-related items. The company is renowned for its signature quilted cotton patterns, vibrant prints and functional designs that cater to a broad range of consumers seeking stylish yet practical products. Over the years, Vera Bradley has expanded its product portfolio to include luggage, backpacks, tech accessories, cold-weather goods and coordinated coordinated travel sets, reinforcing its position in the global accessories market.

Founded in 1982 by Barbara Bradley Baekgaard and Patricia R. Miller in Fort Wayne, Indiana, Vera Bradley began with a single tote bag featuring the founders’ distinctive floral print. Since its inception, the company has grown from a roadside boutique operation into an international brand. Headquarters and distribution facilities remain in Fort Wayne, where design, product development and centralized order fulfillment support both domestic and overseas markets. Vera Bradley partners with a network of third-party manufacturers in Asia and other regions to produce its diverse range of goods, ensuring quality control and supply chain efficiency.

Vera Bradley distributes its products through multiple channels, including direct-to-consumer e-commerce, wholesale partnerships with department stores and specialty retailers, company-owned retail shops, and outlet locations. The brand’s digital platform serves as a key driver of growth, while brick-and-mortar stores provide curated experiences that highlight new collections and collaborations. In addition to its core United States market, Vera Bradley has cultivated a presence in Canada, Europe and select Asia-Pacific territories, leveraging strategic retail placements and online marketplaces to reach global consumers.

Leadership at Vera Bradley is headed by Chief Executive Officer Robert Wallstrom, who brings extensive experience in consumer products and retail operations. The board features co-founder Barbara Bradley Baekgaard in a strategic advisory role, contributing to brand vision and philanthropic initiatives. Through the Vera Bradley Foundation for Breast Cancer, the company also underscores its commitment to community engagement and social responsibility, aligning its corporate values with its customer base and broader stakeholder interests.

Vera Bradley Q1 2026 Earnings Call Transcript

Key Takeaways

• Executive leadership transition: Vera Bradley’s Board has appointed industry veteran Ian Bickley as Executive Chairman, launched a nationwide CEO search, and named Marty Leiding as CFO to drive its ongoing transformation.
• First-quarter revenues fell 23.8% year-over-year to $51.7 million, with a widened non-GAAP net loss of $10 million ($0.36 per share) versus $6.6 million ($0.22) last year.
• Non-GAAP gross margin declined to 47.5% from 51.3%, driven by a shift from full-price stores to online channels and higher outbound freight costs.
• SG&A expenses were reduced by $6.4 million to $38.3 million, inventory was down 3%, and the company ended the quarter with $11.3 million in cash and no borrowings on its $75 million ABL facility.
• Wholesale diversification gained momentum with strong Target Marketplace results and new partnerships—including Costco, Urban Outfitters and upcoming Anthropologie exclusives—driven by data-led channel expansion.

Presentation

[Operator]

Greetings, and welcome to the Vera Bradley First Quarter Fiscal twenty twenty six Earnings Conference Call. At this time, all participants are in a listen only mode. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Mark DeLai, Chief Administrative Officer. Thank you, sir. You may begin.

[Mark Dely, Chief Administrative Officer at Vera Bradley]

Good morning, welcome, everyone. We'd like to thank you for joining today's call. Some of the statements made during our prepared remarks in response to your questions may constitute forward looking statements made pursuant to and within the meaning of the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995 as amended. Such forward looking statements are subject to both known and unknown risks and uncertainties that could cause actual results to differ materially from those that we expect. Please refer to today's press release and company's most recent Form 10 ks filed with the SEC for a discussion of known risks and uncertainties.

[Mark Dely, Chief Administrative Officer at Vera Bradley]

Investors should not assume that the statements made during the call will remain operative at a later time. We undertake no obligation to update any information discussed on today's call. I will now turn the call over to Vera Bradley's incoming Executive Chairman, Ian Bickley. Ian?

[Ian Bickley, Director at Vera Bradley]

Thanks, Mark. Good morning, everyone. It is a pleasure to speak with all of you. I wanted to join today's call to provide you with some insight on the changes that are taking place at Vera Bradley and to discuss my role in the transition going forward. But on behalf of the entire Board of Directors, I want to acknowledge both Jackie and Michael for their work and dedication in helping position Vera Bradley for its next chapter on the transformation journey.

[Ian Bickley, Director at Vera Bradley]

And thank both for their commitment to facilitating a smooth transition of leadership. We also wish them well in their future endeavors. As you heard from today's announcement, Jackie will be departing the company at the July. The Board of Directors has launched a nationwide search to find the next CEO. We have already seen many promising candidates and are focused on hiring the best person to drive Vera Bradley's continued transformation.

[Ian Bickley, Director at Vera Bradley]

In the interim, the Board believes it is important to have consistent and steady leadership and asked me to assume the role of Executive Chairman until we have a new CEO in place and ready to lead the company again. In this role, I will be working with Jackie and the management team to ensure a smooth transition. When Jackie leaves at the July, I will leave the company until our new CEO is on board. Concurrent with this change, the board has announced the formation of a new strategy and transformation committee. The goal of the committee is to work with the management team and incoming leadership in refining the company's strategic direction and future growth initiatives and accelerate the company's operational transformation.

[Ian Bickley, Director at Vera Bradley]

Director Andrew Meslow, former CEO of Bath And Body Works is joining me on this committee. We are delighted that Andrew is willing to serve in this important role. I am approaching this role not merely as a caretaker, but as someone committed to driving performance and needed change for the company. The board believes we must accelerate our transformation and improve our results. We will focus on refining our strategy while driving operational efficiencies and cost savings to improve profitability and performance.

[Ian Bickley, Director at Vera Bradley]

I bring over thirty years of relevant industry experience, including rapidly scaling businesses, as well as driving both brand and operational business transformation. I was president of Coach's International Group and have served as an independent director on the Crocs board since 2015. More recently, I acted as the interim CEO at The Body Shop where I helped stabilize the business and navigate it through a successful sales process. I am also pleased that Martin, Marty Leiding will be joining the company as the Chief Financial Officer. Marty began his career at Procter and Gamble and has extensive experience in various CFO roles and also has a strong track record of driving operational transformation and rapidly scaling businesses in both the public and private domain, having worked for brands such as Coach, Supreme, and most recently at Noodle.

[Ian Bickley, Director at Vera Bradley]

I have previously worked with Marty and look forward to the significant contribution he can make to improving performance and accelerating the pace of change. Notwithstanding the current results, Vera Bradley is an iconic brand with strong awareness and deep emotional connections with consumers of all generations. I am personally optimistic about the opportunity to restore the brand's cultural relevance with a new generation of consumers, as well as with many of its longtime fans, while at the same time accelerating the simplification of the company's operating model to drive greater agility and efficiency. I look forward to leading and overseeing the continuation and acceleration of this important work until a new CEO has been brought on board. I am now going to turn the call over to Jackie and Michael to discuss Q1 results. Jackie?

[Jacqueline Ardrey, President, CEO & Director at Vera Bradley]

Thank you, Ian, and thank you all for joining us. I'd like to also take a moment to thank Ian and our entire Board of Directors for their support and guidance since joining in 2022. I'm also grateful for the Board's support during this transition as I stepped down from my leadership position. I will begin with a review of our first quarter before turning the call over to Michael to discuss the financials in greater detail. Our first quarter results came close to plan as the resonance of our comprehensive strategic initiative to transform our business model and brand positioning continues to improve.

[Jacqueline Ardrey, President, CEO & Director at Vera Bradley]

The pivots we are making are starting to resonate and the composition of our customer file is beginning to meaningfully shift. I'm particularly proud of how the organization is embracing new opportunities, especially in wholesale, while we react to demand and customer feedback. While we are on the path of restoring and modernizing the Vera Bradley brand through the four pillars of product, brand, customer and channel, we recognize that we need to offer a better balance of new and heritage product and are working to increase our penetration of classic Vera Bradley product. We've brought back heritage styles, developed new heritage reimagined collections, increased deliveries of licensed products and returned fan favorites to the assortment. We've also addressed customer feedback about zippers, pockets and changes in strap length.

[Jacqueline Ardrey, President, CEO & Director at Vera Bradley]

We remain focused on being where she shops. We have quickly built momentum behind this strategy and are successfully diversifying our wholesale accounts with new relationships. We shipped our order to Costco in Q1, launched on Urban Outfitters Marketplace last week, continued to deliver strong revenue increases on Target Marketplace and have a healthy pipeline of new partnerships for the rest of the year, including exclusive products for Anthropologie. These targeted partnerships are based on data insights from both our current customer and lookalike prospective customers and have guided our efforts and outreach. Our performance on Target Marketplace was a notable standout in Q1.

[Jacqueline Ardrey, President, CEO & Director at Vera Bradley]

The exceptional results have led to further discussions on how best to maximize the partnership. Our success with Target demonstrates the importance of being where she shops. Our first quarter revenues were $51,700,000 with mixed direct channel performance. Traffic and conversion declines impacted the business, especially in the outlet and brand stores. E commerce revenues are stronger, particularly in the value channels of our online outlet and Target Marketplace.

[Jacqueline Ardrey, President, CEO & Director at Vera Bradley]

Our annual outlet sale happened mostly in Q1, where we welcomed tens of thousands of shoppers to Fort Wayne, Indiana and achieved our sales plan. The Indirect segment was a bright spot in Q1, over delivering plan by double digits as some of our key initiatives started to bear fruit. Channel mix and customer behavior impacted gross margins in the quarter though, primarily driven by material channel mix shifts. In most channels, customers continued to demonstrate pricing sensitivity evidenced by significantly higher clearance penetration despite similar inventory levels and promotional positioning. In light of this, we are testing price elasticity through promo adjustments and are proceeding with plans to close 10 unprofitable full line store locations this year.

[Jacqueline Ardrey, President, CEO & Director at Vera Bradley]

Turning to product newness, we launched our new baby bag collection and a luggage program in the brand channels as well as continued re launches of past customer favorites in the outlet channel, including the extremely successful update of the cult favorite, Glenna Satchel Bag. During Q1, we continued to see divergence in customer behavior by income level, which we believe is related to macroeconomic pressure. However, we are seeing encouraging shifts in our customer file. At the end of the quarter, recently acquired new customers comprised 45% of our active twelve month file versus 30% last year. These recently acquired customers have a different age and income profile than our existing customers and are showing slightly different product affinities, which we are leaning into to inform future assortments.

[Jacqueline Ardrey, President, CEO & Director at Vera Bradley]

To further support our progress in driving customer growth in the eighteen to thirty four year old demographic, our new social marketing campaign launches in July and will run through the holiday season. It will feature a return to nostalgia and fun, highlighting the long standing emotional connection of the Vera Bradley brand as well as offering some exciting new product introductions that will delight both new and existing customers. Looking forward, customer favorites like the Vera tote franchise will return to the outlet channel, while traditional lanyard styles will appear soon in both branded outlet channels as well as some exciting new IP collections and key items for back to school. Above all, we will continue to offer heritage patterns and styling in new reimagined and fun ways that will appeal to both existing and new customers. Now I will turn the call over to Michael, who will discuss our financial results in more detail.

[Michael Schwindle, CFO at Vera Bradley]

Thanks, Jackie. Good morning, everyone, and thank you for joining us. I have a few brief comments to make about our performance for the quarter. As a reminder, we did complete the sale of Pura Vida during the first quarter. As a result, the operations of Pura Vida have been classified as discontinued operations in the consolidated financial statements.

[Michael Schwindle, CFO at Vera Bradley]

Prior period amounts have also been retrospectively adjusted to conform to the current period presentation. For the sake of clarity, all the numbers I am discussing today are non GAAP and exclude the charges outlined in today's press release. A complete detail of items excluded from the non GAAP numbers as well as a reconciliation of GAAP to non GAAP can be found in that release. For the 2026, our consolidated revenues totaled $51,700,000 compared to $67,900,000 in the prior year first quarter. On a non GAAP basis, net loss from continuing operations for the first quarter totaled $10,000,000 or $0.36 per diluted share compared to a net loss from continuing operations of $6,600,000 last year or $0.22 per diluted share.

[Michael Schwindle, CFO at Vera Bradley]

In terms of segment performance, the Vera Bradley direct segment revenues for the current year first quarter totaled $43,100,000 a 23.6% decrease from $56,400,000 in the prior year first quarter. Comparable sales similarly declined to 25%, driven by traffic and conversion declines in our full line and outlet stores, as Jackie mentioned, as we experienced overall channel shift from our stores to our online sites. Total revenues year over year were also impacted by 10 new store openings and seven store closures since the prior year first quarter. Vera Bradley indirect segment revenues for the first quarter totaled $8,600,000 a 25.6 decrease from the $11,500,000 in the prior year first quarter. The decrease was related primarily to a decline in specialty and key account orders.

[Michael Schwindle, CFO at Vera Bradley]

Non GAAP first quarter gross margin totaled $24,600,000 or 47.5 percent of net revenues compared to $34,800,000 or 51.3% of net revenues in the prior year. The year over year margin rate decline was driven primarily by the channel shift from stores to online sites, as both Jackie and I mentioned a moment ago, which also contributed meaningfully to increased outbound freight costs. Non GAAP SG and A expense totaled $38,300,000 or 74.2% of net revenues compared to $44,700,000 or 65.7% of net revenues for the prior year first quarter. The $6,400,000 decrease in expenses was primarily due to cost reduction initiatives along with lower variable expenses. As we have discussed in prior updates, we are focused on strong operating discipline and have been pleased with the progress of the organization and building this discipline to date.

[Michael Schwindle, CFO at Vera Bradley]

We continue to closely examine all areas of our organization for process and cost efficiencies. First quarter non GAAP operating loss from continuing operations totaled $13,600,000 or 26.3% of net revenues compared to September loss or 13.8% of net revenues in the prior year. Now turning to the balance sheet. Cash and cash equivalents at the end of the quarter totaled $11,300,000 We had no borrowings on our $75,000,000 ABL facility at quarter end. First quarter inventory decreased year over year by approximately 3% to $99,200,000 compared to $101,800,000 at the end of the first quarter last year.

[Michael Schwindle, CFO at Vera Bradley]

This was driven by continued changes in our merchandising processes. We have been intensely focused on redefining how we approach inventory acquisition and management, and we continue to take strategic actions in our merchandising and sourcing processes, which will both improve product flow as well as quality of inventory. These efforts have already meaningfully impacted our ability to navigate the unique challenges of the current fiscal year and will continue to drive improvements. Now shifting to guidance. As noted in both press releases this morning, the company has announced several executive and Board leadership changes.

[Michael Schwindle, CFO at Vera Bradley]

Given these changes as well as significant uncertainties surrounding the consumer environment, the company is suspending its prior year guidance and is currently not providing any forward guidance. In closing, entire Vera Bradley team has worked hard on enormous business changes, as Jackie and I have discussed in numerous calls. I sincerely appreciate this effort and know it will be pivotal in the next phase of the business transformation as well as improved performance in the future. Jackie?

[Jacqueline Ardrey, President, CEO & Director at Vera Bradley]

In closing, I would like to thank the entire team at Vera Bradley for their hard work and dedication. I'm proud of the transformational work that we have done during my time here. And while it has taken longer than I had hoped, I believe the company is on track to deliver improved performance going forward. This concludes our call today.

[Operator]

Ladies and gentlemen, this does conclude today's teleconference. You may disconnect your lines at this time. Thank you for your participation and have a wonderful day.

Participants

Executives

• Mark Dely, Chief Administrative Officer
• Ian Bickley, Director
• Jacqueline Ardrey, President, CEO & Director
• Michael Schwindle, CFO