Vera Bradley’s Q1 sales decline, net loss widens

First quarter revenues at Vera Bradley declined to 80.6 million dollars and net loss widened to 8.1 million dollars or 26 cents per diluted share.

“Our team continues to diligently work on Project Restoration, our strategic plan to drive long-term profitable growth, by addressing the consumer, brand, product, and channel components of both of our brands,” noted Jackie Ardrey, chief executive officer of the company.

Commenting on the outlook, 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.”

Vera Bradley direct segment revenues were 56.4 million dollars, a 4.2 percent decrease versus the same quarter last year, while comparable sales declined 9.6 percent in the first quarter, primarily driven by weakness in the outlet channel. The company permanently closed six full-line stores and opened one outlet store over the last twelve months.

Vera Bradley indirect segment revenues declined 25 percent to 11.5 million dollars driven by lower sales to certain specialty partners and key accounts, as well as the timing of a large off-price order, shifting to the second quarter this year.

Pura Vida segment revenues of 12.7 million dollars, declined 37 percent, primarily due to declines in ecommerce and wholesale sales.

For Fiscal 2025, the company expects net revenues of 460 to 480 million dollars, Vera Bradley brand sales to grow by low-single digits for the year, and Pura Vida brand sales to decline in the mid-teen range.

Gross profit percentage is expected to be between 54 percent to 55 percent, operating income in the range of 21 to 24.5 million dollars and diluted EPS of 54 cents to 62 cents.