Vera Bradley net loss grows
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Fort Wayne-based Vera Bradley Inc. (Nasdaq: VRA) is reporting a fiscal first quarter net loss of $7 million, compared to a loss of $2.1 million during the same period last year. Chief Executive Officer Rob Wallstrom said despite the loss, the company continued to implement price increases, which helped offset logistics and sourcing pressures.
“We are clearly seeing a bifurcation in the spending of our customer base,” said Wallstrom. “At Vera Bradley, Direct Channel full-line revenues were above last year as customers with higher household incomes remained engaged and spent more than last year. We also saw a healthy year-over-year rebound in Indirect Channel revenues.”
Wallstrom says inflationary pressures, including rising gas prices, impacted spending from the company’s full-line customers. Additionally, e-commerce revenues from the company’s Pura Vida brand continued to be affected by the shift in social and digital media effectiveness and rising digital media costs.
“We are preparing for the macro environment to remain challenging through the remainder of this year and into next year,” said Wallstrom. “And, despite the strength in Pura Vida’s store business and opportunity for new store growth, we know that it will take time to return the e-commerce business to growth as rebuilding the marketing platform and remixing the marketing program is underway. We are taking decisive actions that will further strengthen both core brands and our enterprise as a whole, not only to successfully manage through this period but position us for the future.”
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