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Vera Bradley (VRA) investor relations material
Vera Bradley Q3 2026 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Executive summary
Project Sunshine, a five-pillar transformation initiative, is underway to reinvigorate the brand, focusing on product innovation, brand storytelling, operational excellence, and customer engagement.
Net revenues for the quarter ended November 1, 2025, declined 11.7% year-over-year to $62.3 million, with both Direct and Indirect segments experiencing sales decreases.
Leadership transition continues, with a CEO search in progress, interim Executive Chairman, and new CFO and Chief Brand Officer appointed.
The company completed the sale of its Pura Vida subsidiary, resulting in a $15.2 million loss on disposal, with Pura Vida now reported as discontinued operations.
Early wins include positive comparable Brand channel sales for five months and successful reintroduction of iconic styles.
Financial highlights
Q3 revenues were $62.3 million, down 11.7% year-over-year, with sequential improvement in direct channels.
Net loss from continuing operations was $(12.4) million ($(0.44) per share), compared to $(3.7) million ($(0.13)) last year.
Gross margin for the quarter was 42.1% (down from 54.5% year-over-year), or 51.2% excluding inventory write-down.
SG&A expenses decreased 17.2% to $38.7 million, reflecting cost reductions in headcount, compensation, and advertising.
Inventory decreased 24.3% year-over-year to $82.9 million, with improved alignment of receipts to sales.
Outlook and guidance
Spring-summer 2026 is expected to be the first period with significant impact from new product strategies, with larger commitments to successful styles and prints.
Inventory turns are targeted to improve from below 2 to the 2–3 range over the next 12–18 months.
Management remains cautious due to ongoing inflationary pressures and softer consumer discretionary spending, but expects strategic initiatives to position the business for long-term growth.
Continued focus on disciplined expense control, inventory management, and sustainable growth.
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