Vera Bradley swings to Q3 loss
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Fort Wayne-based Vera Bradley Inc. is reporting a fiscal third-quarter net loss of $12.8 million, compared to net income of $5.1 million during the same period last year.
CEO Jackie Ardrey said the quarter was a challenging one as the company continued in the early stages of its Project Restoration effort.
Ardrey, who began as CEO in November 2022, has spent the majority of her tenure on Project Restoration, which was designed to return the luggage, handbag, and fashion accessory designer back to profitability.
Earlier this year, Vera Bradley launched a brand refresh aimed at “reinvigorating the business and restoring brand relevance.”
“With the current consumer mindset focused on value, we have more work ahead of us on our repositioning journey,” Ardrey said. “Importantly, we’ve made meaningful adjustments to our assortment and value proposition in response to results and customer feedback.”
Net revenues for the third quarter totaled $80.6 million, down from $115 million the previous year. However, Ardrey noted that Vera Bradley entered the fourth quarter with no debt and $13.7 million in cash, and leadership is managing the business “through a conservative lens.”
“With our brand restoration efforts well under way, we remain agile and flexible for the remaining Holiday season, continuing to drive strong business discipline, and pursuing our vision to inspire people to be bold in their pursuits and brilliant in their self-expression,” she said. “While this is a transformational period, we remain confident that Project Restoration is the right path forward for the long-term health and positioning of Vera Bradley.”
Vera Bradley stock closed down nearly 12% to $4.74 per share on Wednesday.
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