Quarterly loss grows for Vera Bradley ahead of ‘reintroduction’
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Fort Wayne-based Vera Bradley Inc. is reporting a fiscal first quarter net loss of $8.1 million, compared to a loss of $4.7 million during the same period last year.
The results come about a month before a slate of “customer-facing changes” will be unveiled as part of the company’s ongoing Project Restoration initiative.
Launched in early 2023, Project Restoration is an effort created by CEO Jackie Ardrey to bring Vera Bradley and its Pura Vida brand back to profitable growth and strong cash flow.
Over the last year, Vera Bradley announced plans to cut nearly $40 million in costs and eliminate dozens of corporate positions, including three C-suite executives in early 2023.
The initiative led to Vera Bradley reporting a fiscal full-year profit in March. But Ardrey said in a news release outlining the latest quarterly earnings that more changes are coming.
“After more than a year of foundational work on Project Restoration, we are very excited about the customer-facing changes that we will unveil in mid-July 2024, particularly related to our elevated Vera Bradley brand marketing, product, store design, and website,” Ardrey said. “As anticipated, economic and pre-transformation headwinds continue to affect first half results as we prepare for our July launch, and we expect to bear the fruits of Project Restoration in the second half. Through these turnaround efforts, we are pivoting the organization toward a bright future.”
Ardrey said the mid-July announcement will see the company “reintroducing” its iconic brand to the market. The company will also introduce a new celebrity partnership and relationships with other influencers, she said.
“We are carefully coordinating the launch of new and elevated products, updated branding and marketing, renovated stores and modernized in-store displays, and our improved web experience. We are seeing several green shoots in the business, like positive response to our new products by the wholesale channel and other partners, and our customers’ reaction to limited-quantity product introductions, like leather and beaded bags.”
Ardrey said the company expects to add six new outlet locations this year, offset by the exit of four to six underperforming stores over the next 12-18 months.
The company said Vera Bradley Direct revenues fell 4% for the quarter and Indirect revenues fell 25%. First quarter sales for the company’s Pura Vida brand also fell 37%.
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