Restructuring helps bring Vera Bradley to full-year profit
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Fort Wayne-based Vera Bradley Inc. is reporting fiscal full-year net income of $7.8 million in 2023, compared to a loss of $60 million the previous year.
The results represent the first full year of “Project Restoration,” a restructuring effort aimed at returning the luggage, handbag, and fashion accessory designer back to profitability.
CEO Jackie Ardrey implemented the initiative last year, and said in a news release Wednesday that the effort has “pivoted the organization toward a bright future.”
“We have…effectively managed both the existing business as well as the turnaround efforts, through Project Restoration, which will begin to bear fruit in the coming year,” Ardrey said. “After a year of foundational work, we are very excited about the customer-facing changes through Project Restoration that we will unveil this year.”
The company is also reporting a fourth-quarter net loss of $1.9 million, compared to loss of $28.2 million during the same period the year prior.
Ardrey said fourth-quarter revenues for the Vera Bradley brand fell 6.1% to $133.3 million, primarily due to store closures over the last year.
“Customers responded to some of our latest product collaborations and to our newer product offerings like leather, but overall, they continued to be more discriminating with their discretionary spending in light of the macroeconomic environment,” she said, also noting that wholesale partners were cautious with their inventory buys during the quarter.
Looking ahead to the next fiscal year, Ardrey said Vera Bradley will enter the next phase of Project Restoration, which is being dubbed “Project New Day,” in mid-July.
“It includes, among other things, the reveal of our new and elevated full-line branding and marketing, product, store design, and website,” she said. “Our work on this initiative was informed by consumer research and current perceptions of the brand from both buyers and non-buyers. We believe we have the ability to attract new customers while keeping our current fans through product innovations and new marketing campaigns designed to inspire joy and connection.”
Ardrey said Vera Bradley remains confident that Project Restoration will drive long-term profitable growth for the company.
You can connect to the full earnings report by clicking here.