vra-20231206
0001495320FALSE00014953202023-12-062023-12-06


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
___________________________
FORM 8-K
___________________________
 
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D)
OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): December 6, 2023
___________________________ 
VERA BRADLEY, INC.
(Exact name of registrant as specified in its charter)
___________________________
 
Indiana 001-34918 27-2935063
(State or Other Jurisdiction
of Incorporation)
 (Commission
File Number)
 (IRS Employer
Identification No.)
12420 Stonebridge Road,
Roanoke, Indiana
 46783
(Address of Principal Executive Offices) (Zip Code)
(877) 708-8372
(Registrant’s telephone number, including area code)
None
(Former name, former address and former fiscal year, if changed since last report)
___________________________

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of Each ClassTrading Symbol(s)Name of each exchange on which registered
Common Stock, without par valueVRANASDAQ Global Select Market



Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company
 If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o




The information in Items 2.02 and 9.01 of this Form 8-K is being furnished and shall not be deemed “filed” for the purpose of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section. The information in this Form 8-K shall not be incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, as amended.
Item 2.02 Results of Operations and Financial Condition
On December 6, 2023, Vera Bradley, Inc. issued an earnings press release for the quarterly period ended October 28, 2023. The press release, including attachments, is furnished as Exhibit 99.1 to this report.
Item 9.01 Financial Statements and Exhibits
(d) Exhibits
104Cover Page Interactive Data File (embedded within the Inline XBRL document)





SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
 
Vera Bradley, Inc.
(Registrant)
Date: December 6, 2023
/s/ Michael Schwindle
Michael Schwindle
Chief Financial Officer




EXHIBIT INDEX
 
Exhibit No.
Description
104Cover Page Interactive Data File (embedded within the Inline XBRL document)



Document

https://cdn.kscope.io/2a07cf425b074b976f33941f03acd90d-verabradleyinclogoa.jpg
VERA BRADLEY ANNOUNCES THIRD QUARTER FISCAL YEAR 2024 RESULTS

Consolidated net revenues totaled $115.0 million

Net income totaled $5.1 million, or $0.16 per diluted share;
non-GAAP net income totaled $6.1 million, or $0.19 per diluted share

Balance sheet strengthens, with cash and cash equivalents of $52.3 million, no debt, and year-over-year inventories down 27.6%


FORT WAYNE, Ind., December 6, 2023 – Vera Bradley, Inc. (Nasdaq: VRA) today announced its financial results for the third quarter and nine months ended October 28, 2023.

In this release, Vera Bradley, Inc. or “the Company” refers to the entire enterprise and includes both the Vera Bradley and Pura Vida brands. Vera Bradley on a stand-alone basis refers to the Vera Bradley brand.

Third Quarter Comments

Jackie Ardrey, Chief Executive Officer of the Company, stated, “Our efforts continue on Project Restoration, and we are very pleased with our progress to date as our associates across the Company work together to position Vera Bradley, Inc. for long-term, profitable growth. Year-over-year third quarter non-GAAP income was essentially flat, as we delivered solid gross margin expansion and carefully managed our expenses, despite sales challenges.”

“Total third quarter revenues for the Vera Bradley brand decreased 5.0% from last year,” Ardrey noted. “Vera Bradley Direct revenue declines primarily resulted from continued weakness in the outlet store channel and the impact of store closures. Year-over-year Vera Bradley Indirect revenues were up as compared to last year.

“Pura Vida year-over-year sales decreased 18.3%, with declines in both wholesale and ecommerce revenues, as prior year sales were driven by meaningfully higher levels of marketing spend, along with increased liquidation and clearance activity. Store sales remained strong. With our diligent expense management and focus on profitability, Pura Vida year-over-year third quarter operating income improved.

“At both brands, customers have responded to our latest iconic product collaborations and to our new, innovative, and on-trend product offerings, even as they have been more careful and thoughtful with their discretionary spending in the current macro environment.”

Ardrey continued, “We continue to diligently manage our debt-free balance sheet, adding to our year-over-year cash position while strategically lowering our inventory levels. Strength in this area is important in navigating an uncertain retail environment as well as in supporting our Project Restoration initiatives.

“Presently, we are taking targeted and prudent actions to stabilize revenues, and we remain focused on strong financial discipline and controlling what we can control as we react both strategically and tactically to current market conditions. Simultaneously, we have made meaningful progress on our long-term strategic plan, Project Restoration, focusing on four key pillars of the business for each brand – Consumer, Brand, Product, and Channel. We believe execution of Project Restoration will drive long-term profitable growth and deliver value to our shareholders.”




Summary of Financial Performance for the Third Quarter

Consolidated net revenues totaled $115.0 million compared to $124.0 million in the prior year third quarter ended October 29, 2022.

For the current year third quarter, Vera Bradley, Inc.'s consolidated net income totaled $5.1 million, or $0.16 per diluted share. These results included $1.0 million of net after tax charges, comprised of $0.6 million for the amortization of definite-lived intangible assets, $0.2 million of severance charges, and $0.2 million of consulting fees primarily associated with strategic initiatives. On a non-GAAP basis, Vera Bradley, Inc.’s consolidated third quarter net income totaled $6.1 million, or $0.19 per diluted share.

For the prior year third quarter, Vera Bradley, Inc.’s consolidated net income totaled $5.2 million, or $0.17 per diluted share. These results included $1.1 million of net after tax charges, comprised of $0.6 million of consulting and professional fees primarily associated with cost savings initiatives and the CEO search, $0.4 million for the amortization of definite-lived intangible assets, and $0.3 million of severance and stock-based retirement compensation charges, partially offset by a benefit of $0.2 million for the reversal of certain purchase order cancellation fees. On a non-GAAP basis, Vera Bradley, Inc.’s consolidated third quarter net income totaled $6.3 million, or $0.20 per diluted share.

Summary of Financial Performance for the Nine Months

Consolidated net revenues totaled $337.5 million for the current year nine months ended October 28, 2023, compared to $352.9 million in the prior year nine-month period ended October 29, 2022.

For the current year nine months, Vera Bradley, Inc.’s consolidated net income totaled $9.7 million, or $0.31 per diluted share. These results included $4.0 million of net after tax charges, comprised of $1.8 million of severance charges, $1.7 million for the amortization of definite-lived intangible assets, and $0.5 million of consulting and professional fees primarily associated with strategic initiatives. On a non-GAAP basis, Vera Bradley, Inc.’s consolidated net income for the nine months totaled $13.7 million, or $0.44 per diluted share.

For the prior year nine months, Vera Bradley, Inc.’s consolidated net loss totaled ($31.6) million, or ($1.00) per diluted share. These results included $34.2 million of net after tax charges, comprised of $18.2 million of Pura Vida goodwill and intangible asset impairment charges, $5.0 million of severance and stock-based retirement compensation retirement charges and other employee costs, $4.7 million of inventory adjustments associated with the exit of certain technology products and the write-off of excess mask inventory, $3.0 million of consulting and professional fees primarily associated with cost savings initiatives and the CEO search, $1.3 million of intangible asset amortization, $1.0 million of store and right-of-use asset impairment charges, $0.7 million of purchase order cancellation fees for spring 2023 goods, and $0.3 million of goodMRKT exit costs. On a non-GAAP basis, Vera Bradley, Inc.’s consolidated net income for the nine months totaled $2.6 million, or $0.08 per diluted share.

Non-GAAP Numbers

The current year non-GAAP third quarter and nine-month income statement numbers referenced below exclude the previously outlined severance charges, intangible asset amortization, and consulting and professional fees. The prior year non-GAAP third quarter income statement numbers referenced below exclude the previously outlined consulting and professional fees, amortization of definite-lived intangible assets, severance and stock-based retirement compensation charges, and a benefit for the reversal of certain purchase order cancellation fees. The prior year non-GAAP income statement numbers for the nine months referenced below exclude the previously outlined goodwill and intangible asset impairment charges, severance and stock-based retirement compensation retirement charges and other employee costs, inventory adjustments and write-offs, consulting and professional fees, intangible asset amortization, store and right-of-use asset impairment charges, purchase order cancellation fees, and goodMRKT exit costs.

Third Quarter Details

Current year third quarter Vera Bradley Direct segment revenues totaled $72.3 million, a 9.7% decrease from $80.1 million in the prior year third quarter. Comparable sales declined 8.2% in the third quarter, primarily driven by weakness in the outlet channel. Total revenues were also impacted by store closures over the last twelve months, including 15 full-line and two outlet stores. The Company also opened three outlet stores over the last twelve months.

Vera Bradley Indirect segment revenues totaled $25.0 million, a 12.0% increase over $22.3 million in the prior year third quarter, reflecting a significant one-time key account order that did not take place in the prior period.




Pura Vida segment revenues totaled $17.7 million, an 18.3% decrease from $21.7 million in the prior year third quarter, reflecting a decline in sales to wholesale accounts and a decline in ecommerce sales, partially offset by growth in retail store sales.

Third quarter consolidated gross profit totaled $63.0 million, or 54.8% of net revenues, compared to $65.9 million, or 53.1% of net revenues, in the prior year. On a non-GAAP basis, prior year gross profit totaled $65.6 million, or 52.9% of net revenues. The current year gross profit rate compared to the prior year non-GAAP rate was favorably impacted by lower year-over-year inbound and outbound freight expense, lower supply chain costs, and the sell-through of previously-reserved inventory, partially offset by increased promotional activity. Prior year gross profit was materially impacted by high inbound and outbound freight expense as well as deleverage of overhead costs.

Third quarter consolidated SG&A expense totaled $56.4 million, or 49.0% of net revenues, compared to $60.1 million, or 48.4% of net revenues, in the prior year. On a non-GAAP basis, consolidated SG&A expense totaled $55.1 million, or 48.0% of net revenues for the current year third quarter, compared to $57.6 million, or 46.4% of net revenues, in the prior year. Vera Bradley’s current year non-GAAP SG&A expenses were lower than the prior year primarily due to Company-wide cost reduction initiatives across various areas of the enterprise. The expense deleverage resulted from lower revenues.

The Company’s third quarter consolidated operating income totaled $6.8 million, or 5.9% of net revenues, compared to $6.0 million, or 4.8% of net revenues, in the prior year third quarter. On a non-GAAP basis, the Company’s current year consolidated operating income totaled $8.0 million, or 7.0% of net revenues, compared to $8.2 million, or 6.6%, of net revenues, in the prior year.

By segment:
Vera Bradley Direct operating income was $15.7 million, or 21.7% of Direct net revenues, for the third quarter, compared to $17.1 million, or 21.3% of Direct net revenues, in the prior year. On a non-GAAP basis, prior year Direct operating income totaled $16.8 million, or 21.0% of Direct net revenues.
Vera Bradley Indirect operating income was $9.0 million, or 35.9% of Indirect net revenues, for the third quarter, compared to $9.0 million, or 40.4% of Indirect net revenues, in the prior year. On a non-GAAP basis, prior year Indirect operating income totaled $9.0 million, or 40.2% of Indirect net revenues.
Pura Vida’s operating loss was ($0.6) million, or (3.3%) of Pura Vida net revenues, in the current year, compared to an operating loss of ($1.4) million, or (6.2%) of Pura Vida net revenues, in the prior year. On a non-GAAP basis, Pura Vida’s operating income was $0.1 million, or 0.8% of Pura Vida net revenues, compared to an operating loss of ($0.1) million, or (0.3%) of Pura Vida net revenues, in the prior year.

Details for the Nine Months

Vera Bradley Direct segment revenues for the current year nine-month period totaled $216.9 million, a 5.2% decrease from $228.7 million in the prior year. Comparable sales declined 5.8% for the nine months.

Vera Bradley Indirect segment revenues for the nine months totaled $57.7 million, a 2.0% increase over $56.6 million in the prior year.

Pura Vida segment revenues for the nine months totaled $62.9 million, a 6.9% decrease from $67.5 million in the prior year, reflecting a decline in sales to wholesale accounts and a decline in ecommerce sales, partially offset by growth in retail store sales.

Consolidated gross profit for the nine months totaled $186.8 million, or 55.3% of net revenues, compared to $178.9 million, or 50.7% of net revenues, in the prior year. On a non-GAAP basis, prior year gross profit totaled $185.9 million, or 52.7% of net revenues. The current year gross profit rate compared to the prior year non-GAAP rate was favorably impacted by lower year-over-year inbound and outbound freight expense, lower supply chain costs, and the sell-through of previously-reserved inventory, partially offset by an increase in promotional activity.

For the nine months, consolidated SG&A expense totaled $174.3 million, or 51.6% of net revenues, compared to $195.0 million, or 55.3% of net revenues, in the prior year. On a non-GAAP basis, current year consolidated SG&A expense totaled $169.1 million, or 50.1% of net revenues, compared to $181.0 million, or 51.3% of net revenues, in the prior year. Vera Bradley’s current year non-GAAP SG&A expenses were lower than the prior year primarily due Company-wide cost reduction initiatives across various areas of the enterprise.

For the nine months, the Company’s consolidated operating income totaled $13.3 million, or 3.9% of net revenues, compared to a consolidated operating loss of ($45.1) million, or (12.8%) of net revenues, in the prior year. On a non-GAAP basis, the Company’s current year consolidated operating income was $18.5 million, or 5.5% of net revenues, compared to $5.3 million, or 1.5% of net revenues, in the prior year.




By segment:
Vera Bradley Direct operating income was $43.7 million, or 20.1% of net revenues, compared to $32.6 million, or 14.3% of Direct net revenues, in the prior year. On a non-GAAP basis, current year Direct operating income was $44.0 million, or 20.3% of Direct net revenues, compared to $38.6 million, or 16.9% of Direct net revenues, in the prior year.
Vera Bradley Indirect operating income was $19.9 million, or 34.4% of Indirect net revenues, compared to $18.4 million, or 32.5% of Indirect net revenues, in the prior year. On a non-GAAP basis, prior year Indirect operating income totaled $19.4 million, or 34.2% of Indirect net revenues.
Pura Vida’s operating income was $5.0 million, or 7.9% of Pura Vida net revenues, compared to an operating loss of ($28.8) million, or (42.7%) of Pura Vida net revenues, in the prior year. On a non-GAAP basis, Pura Vida’s operating income was $7.2 million, or 11.5% of Pura Vida net revenues, for the current year, compared to $4.3 million, or 6.4% of Pura Vida net revenues, for the prior year.

Balance Sheet

Net capital spending for the nine months ended October 28, 2023 totaled $2.5 million compared to $7.0 million in the prior year.

Cash and cash equivalents as of October 28, 2023 totaled $52.3 million compared to $25.2 million at the end of last year’s third quarter. The Company had no borrowings on its $75 million asset-based lending (“ABL”) facility at quarter end.

Total quarter-end inventory was $129.1 million, compared to $178.3 million at the end of the third quarter last year.
During the third quarter, the Company repurchased approximately $0.5 million of its common stock (71,807 shares at an average price of $6.76), bringing the total repurchased for the nine months to approximately $1.9 million (320,127 shares at an average price of $5.94). The Company has $25.8 million remaining under its $50.0 million repurchase authorization that expires in December 2024.

Forward Outlook

Management is updating certain components of guidance for the fiscal year ending February 3, 2024 (“Fiscal 2024”) based on performance for the first nine months, Company initiatives underway, and current macroeconomic trends and expectations. The Company has revised the guidance range for diluted earnings per share for the fiscal year.

Excluding net revenues, all forward-looking guidance numbers referenced below are non-GAAP. The prior year income statement numbers exclude the previously disclosed goodwill and intangible asset impairment charges, severance and stock-based retirement compensation retirement charges and other employee costs, inventory adjustments and write-offs, certain consulting and professional fees, intangible asset amortization, store and right-of-use asset impairment charges, purchase order cancellation fees, and goodMRKT exit costs. Current year guidance excludes any similar charges.

For Fiscal 2024, the Company’s updated expectations are as follows:
Consolidated net revenues of $472 to $478 million. Net revenues totaled $500.0 million in Fiscal 2023.
A consolidated gross profit percentage of 54.0% to 54.5% compared to 51.4% in Fiscal 2023. The Fiscal 2024 gross profit rate is expected to be favorably impacted by lower year-over-year freight expense, cost reduction initiatives, and the sell-through of previously-reserved inventory, partially offset by an increase in promotional activity.
Consolidated SG&A expense of $232.5 to $235.5 million compared to $245.3 million in Fiscal 2023. An expected decline in SG&A expense is being driven by Company-wide cost reduction initiatives, partially offset by restoring short-term and long-term incentive compensation to more normalized levels and incremental marketing investment intended to accelerate customer file growth.
Consolidated operating income of $23.3 to $25.9 million compared to $12.3 million in Fiscal 2023.
Free cash flow of between $40 and $43 million compared to a cash usage of $21.7 million in Fiscal 2023.
Consolidated diluted EPS of $0.56 to $0.62 based on diluted weighted-average shares outstanding of approximately 31.0 million and an effective tax rate of approximately 28%. Diluted EPS totaled $0.24 last year.
Net capital spending of approximately $4 million compared to $8.2 million in the prior year, reflecting investments associated with new Vera Bradley outlet stores and technology and logistics enhancements.

Disclosure Regarding Non-GAAP Measures

The Company's management does not, nor does it suggest that investors should, consider the supplemental non-GAAP financial measures in isolation from, or as a substitute for, financial information prepared in accordance with accounting principles generally accepted in the United States (“GAAP”). Further, the non-GAAP measures utilized by the Company may be unique to the Company, as they may be different from non-GAAP measures used by other companies.
The Company believes that the non-GAAP measures presented in this earnings release, including free cash flow (cash usage); gross profit; selling, general, and administrative expenses; operating income (loss); net income (loss); net income (loss)



attributable and available to Vera Bradley, Inc.; and diluted net income (loss) per share available to Vera Bradley, Inc. common shareholders, along with the associated percentages of net revenues, are helpful to investors because they allow for a more direct comparison of the Company’s year-over-year performance and are consistent with management’s evaluation of business performance. A reconciliation of the non-GAAP measures to the most directly comparable GAAP measures can be found in the Company’s supplemental schedules included in this earnings release.

Call Information

A conference call to discuss results for the third quarter is scheduled for today, Wednesday, December 6, 2023, at 9:30 a.m. Eastern Time. A broadcast of the call will be available via Vera Bradley’s Investor Relations section of its website, www.verabradley.com. Alternatively, interested parties may dial into the call at (888) 204-4368, and enter the access code 7089328. A replay will be available shortly after the conclusion of the call and remain available through December 20, 2023. To access the recording, listeners should dial (844) 512-2921, and enter the access code 7089328.

About Vera Bradley, Inc.

Vera Bradley, Inc. operates two unique lifestyle brands – Vera Bradley and Pura Vida. Vera Bradley and Pura Vida are complementary businesses, both with devoted, emotionally-connected, and multi-generational female customer bases; alignment as casual, comfortable, affordable, and fun brands; positioning as “gifting” and socially-connected brands; strong, entrepreneurial cultures; a keen focus on community, charity, and social consciousness; multi-channel distribution strategies; and talented leadership teams aligned and committed to the long-term success of their brands.

Vera Bradley, based in Fort Wayne, Indiana, is a leading designer of women’s handbags, luggage and other travel items, fashion and home accessories, and unique gifts. Founded in 1982 by friends Barbara Bradley Baekgaard and Patricia R. Miller, the brand is known for its innovative designs, iconic patterns, and brilliant colors that inspire and connect women unlike any other brand in the global marketplace.

In July 2019, Vera Bradley, Inc. acquired a 75% interest in Creative Genius, Inc., which also operates under the name Pura Vida Bracelets (“Pura Vida”). Pura Vida, based in La Jolla, California, is a digitally native, highly-engaging lifestyle brand founded in 2010 by friends Paul Goodman and Griffin Thall. Pura Vida has a differentiated and expanding offering of bracelets, jewelry, and other lifestyle accessories. The Company acquired the remaining 25% of Pura Vida in January 2023.

The Company has three reportable segments: Vera Bradley Direct (“VB Direct”), Vera Bradley Indirect (“VB Indirect”), and Pura Vida. The VB Direct business consists of sales of Vera Bradley products through Vera Bradley Full-Line and Factory Outlet stores in the United States, www.verabradley.com, Vera Bradley’s online outlet site, and the Vera Bradley annual outlet sale in Fort Wayne, Indiana. The VB Indirect business consists of sales of Vera Bradley products to approximately 1,600 specialty retail locations throughout the United States, as well as select department stores, national accounts, third party e-commerce sites, and third-party inventory liquidators, and royalties recognized through licensing agreements related to the Vera Bradley brand. The Pura Vida segment consists of sales of Pura Vida products through the Pura Vida websites, www.puravidabracelets.com, www.puravidabracelets.ca, and www.puravidabracelets.eu; through the distribution of its products to wholesale retailers and department stores; and through its Pura Vida retail stores.

Website Information

We routinely post important information for investors on our website www.verabradley.com in the "Investor Relations" section. We intend to use this webpage as a means of disclosing material, non-public information and for complying with our disclosure obligations under Regulation FD. Accordingly, investors should monitor the Investor Relations section of our website, in addition to following our press releases, SEC filings, public conference calls, presentations and webcasts. The information contained on, or that may be accessed through, our webpage is not incorporated by reference into, and is not a part of, this document.

Investors and other interested parties may also access the Company’s most recent Corporate Responsibility and Sustainability Report outlining its ESG (Environmental, Social, and Governance) initiatives at https://verabradley.com/pages/corporate-responsibility.

Vera Bradley Safe Harbor Statement

Certain statements in this release are "forward-looking statements" made pursuant to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements reflect the Company's current expectations or beliefs concerning future events and are subject to various risks and uncertainties that may cause actual results to differ materially from those that we expected, including: possible adverse changes in general economic conditions and their impact on consumer confidence and spending; possible inability to predict and respond in a timely manner to changes in consumer demand; possible loss of key management or design associates or inability to attract and retain the talent required for our



business; possible inability to maintain and enhance our brands; possible inability to successfully implement the Company’s long-term strategic plans; possible inability to successfully open new stores, close targeted stores, and/or operate current stores as planned; incremental tariffs or adverse changes in the cost of raw materials and labor used to manufacture our products; possible adverse effects resulting from a significant disruption in our distribution facilities; or business disruption caused by pandemics. More information on potential factors that could affect the Company’s financial results is included from time to time in the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of the Company’s public reports filed with the SEC, including the Company’s Form 10-K for the fiscal year ended January 28, 2023. We undertake no obligation to publicly update or revise any forward-looking statement. Financial schedules are attached to this release.

CONTACTS:
Investors:
Julia Bentley
jbentley@verabradley.com

Media:
mediacontact@verabradley.com
877-708-VERA (8372)





Vera Bradley, Inc.
Condensed Consolidated Balance Sheets
(in thousands)
(unaudited)
October 28,
2023
January 28,
2023
October 29,
2022
Assets
Current assets:
Cash and cash equivalents$52,266 $46,595 $25,237 
Accounts receivable, net25,599 22,105 25,115 
Inventories129,140 142,275 178,334 
Income taxes receivable1,376 1,311 4,120 
Prepaid expenses and other current assets13,025 14,276 14,817 
Total current assets221,406 226,562 247,623 
Operating right-of-use assets67,037 77,954 82,683 
Property, plant, and equipment, net55,909 58,674 60,388 
Intangible assets, net13,731 15,918 32,001 
Goodwill— — 24,833 
Deferred income taxes18,961 21,542 9,381 
Other assets5,790 3,851 4,428 
Total assets$382,834 $404,501 $461,337 
Liabilities, Redeemable Noncontrolling Interest, and Shareholders’ Equity
Current liabilities:
Accounts payable$12,297 $20,350 $31,125 
Accrued employment costs11,756 14,312 12,252 
Short-term operating lease liabilities18,673 19,714 19,742 
Other accrued liabilities13,671 12,723 14,771 
Income taxes payable570 558 501 
Total current liabilities56,967 67,657 78,391 
Long-term operating lease liabilities63,915 74,664 80,109 
Other long-term liabilities71 90 85 
Total liabilities120,953 142,411 158,585 
Redeemable noncontrolling interest— 10,712 23,153 
Shareholders’ equity:
Additional paid-in-capital112,397 109,718 109,070 
Retained earnings284,322 274,629 302,790 
Accumulated other comprehensive loss(74)(105)(181)
Treasury stock(134,764)(132,864)(132,080)
Total shareholders’ equity of Vera Bradley, Inc.261,881 251,378 279,599 
Total liabilities, redeemable noncontrolling interest, and shareholders’ equity$382,834 $404,501 $461,337 




Vera Bradley, Inc.
Condensed Consolidated Statements of Operations
(in thousands, except per share amounts)
(unaudited)
 Thirteen Weeks EndedThirty-Nine Weeks Ended
 October 28,
2023
October 29,
2022
October 28,
2023
October 29,
2022
Net revenues$114,987 $124,040 $337,521 $352,870 
Cost of sales51,980 58,164 150,749 173,963 
Gross profit63,007 65,876 186,772 178,907 
Selling, general, and administrative expenses56,363 60,059 174,274 195,015 
Impairment of goodwill and intangible assets— — — 29,338 
Other income, net142 141 773 350 
Operating income (loss)6,786 5,958 13,271 (45,096)
Interest (income) expense, net(285)39 (241)115 
Income (loss) before income taxes7,071 5,919 13,512 (45,211)
Income tax expense (benefit)1,953 1,090 3,819 (6,429)
Net income (loss)5,118 4,829 9,693 (38,782)
Less: Net loss attributable to redeemable noncontrolling interest— (338)— (7,208)
Net income (loss) attributable to Vera Bradley, Inc.$5,118 $5,167 $9,693 $(31,574)
Basic weighted-average shares outstanding30,814 31,061 30,836 31,721 
Diluted weighted-average shares outstanding31,322 31,229 31,246 31,721 
Basic net income (loss) per share available to Vera Bradley, Inc. common shareholders$0.17 $0.17 $0.31 $(1.00)
Diluted net income (loss) per share available to Vera Bradley, Inc. common shareholders$0.16 $0.17 $0.31 $(1.00)




Vera Bradley, Inc.
Condensed Consolidated Statements of Cash Flows
(in thousands)
(unaudited)
 Thirty-Nine Weeks Ended
 October 28,
2023
October 29,
2022
Cash flows from operating activities
Net income (loss)$9,693 $(38,782)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation of property, plant, and equipment5,988 6,685 
Amortization of operating right-of-use assets15,622 16,151 
Goodwill and intangible asset impairment— 29,338 
Other impairment charges— 1,351 
Amortization of intangible assets2,187 2,305 
Provision for doubtful accounts87 (80)
Stock-based compensation2,365 2,593 
Deferred income taxes3,155 (5,524)
Other non-cash loss, net50 — 
Changes in assets and liabilities:
Accounts receivable(3,581)(4,354)
Inventories13,135 (33,453)
Prepaid expenses and other assets(688)2,764 
Accounts payable(8,134)49 
Income taxes (53)5,772 
Operating lease liabilities, net(16,495)(19,262)
Accrued and other liabilities(2,273)(2,311)
Net cash provided by (used in) operating activities21,058 (36,758)
Cash flows from investing activities
Purchases of property, plant, and equipment(2,546)(6,968)
Cash paid for business acquisition(10,000)— 
Net cash used in investing activities(12,546)(6,968)
Cash flows from financing activities
Tax withholdings for equity compensation(972)(1,430)
Repurchase of common stock(1,900)(17,278)
Distributions to redeemable noncontrolling interest— (613)
Net cash used in financing activities(2,872)(19,321)
Effect of exchange rate changes on cash and cash equivalents31 (152)
Net increase (decrease) in cash and cash equivalents$5,671 $(63,199)
Cash and cash equivalents, beginning of period46,595 88,436 
Cash and cash equivalents, end of period$52,266 $25,237 




Vera Bradley, Inc.
Third Quarter Fiscal 2024
GAAP to Non-GAAP Reconciliation Thirteen Weeks Ended October 28, 2023
(in thousands, except per share amounts)
(unaudited)
Thirteen Weeks Ended
As ReportedOther ItemsNon-GAAP (Excluding Items)
Gross profit$63,007 $— $63,007 
Selling, general, and administrative expenses56,363 1,216 155,147 
Operating income (loss)6,786 (1,216)8,002 
Income (loss) before income taxes7,071 (1,216)8,287 
Income tax expense (benefit)1,953 (234)22,187 
Net income (loss)5,118 (982)6,100 
Less: Net loss attributable to redeemable noncontrolling interest— — — 
Net income (loss) attributable to Vera Bradley, Inc.5,118 (982)6,100 
Diluted net income (loss) per share available to Vera Bradley, Inc. common shareholders$0.16 $(0.03)$0.19 
Vera Bradley Direct segment operating income$15,708 $— $15,708 
Vera Bradley Indirect segment operating income$8,967 $— $8,967 
Pura Vida segment operating (loss) income$(580)$(729)3$149 
Unallocated corporate expenses$(17,309)$(487)4$(16,822)
1Items include $729 for the amortization of definite-lived intangible assets; $304 for severance charges; and $183 for certain professional fees and consulting fees associated with strategic initiatives
2Related to the tax impact of the items mentioned above
3Related to $729 for the amortization of definite-lived intangible assets
4Related to $304 for severance charges; and $183 for certain professional fees and consulting fees associated with strategic initiatives

















Vera Bradley, Inc.
Third Quarter Fiscal 2023
GAAP to Non-GAAP Reconciliation Thirteen Weeks Ended October 29, 2022
(in thousands, except per share amounts)
(unaudited)
Thirteen Weeks Ended
As ReportedOther ItemsNon-GAAP (Excluding Items)
Gross profit$65,876 $276 1$65,600 
Selling, general, and administrative expenses60,059 2,470 257,589 
Impairment of goodwill and intangible assets— — — 
Operating income (loss)5,958 (2,194)8,152 
Income (loss) before income taxes5,919 (2,194)8,113 
Income tax expense (benefit)1,090 (763)31,853 
Net income (loss)4,829 (1,431)6,260 
Less: Net loss attributable to redeemable noncontrolling interest(338)(322)(16)
Net income (loss) attributable to Vera Bradley, Inc.5,167 (1,109)6,276 
Diluted net income (loss) per share available to Vera Bradley, Inc. common shareholders$0.17 $(0.04)$0.20 
Vera Bradley Direct segment operating income$17,060 $225 4$16,835 
Vera Bradley Indirect segment operating income$9,012 $51 4$8,961 
Pura Vida segment operating loss$(1,353)$(1,289)5$(64)
Unallocated corporate expenses$(18,761)$(1,181)6$(17,580)
1Related to the reversal of certain PO cancellation fees
2Items include $1,133 for consulting fees associated with cost savings initiatives and CEO search, as well as certain Pura Vida professional fees; $768 for the amortization of definite-lived intangible assets; $406 for severance charges; and $163 for CEO stock-based compensation associated with retirement
3Related to the tax impact of the charges mentioned above
4Related to an allocation for reversals of certain PO cancellation fees
5Related to an allocation for certain inventory adjustments and PO cancellation fees
6Related to $768 for the amortization of definite-lived intangible assets; and $406 for severance charges; and $115 for certain professional fees
7Related to $1,018 for consulting fees associated with cost savings initiatives and CEO search and $163 for CEO stock-based compensation associated with retirement














Vera Bradley, Inc.
GAAP to Non-GAAP Reconciliation Thirty-Nine Weeks Ended October 28, 2023
(in thousands, except per share amounts)
(unaudited)
Thirty-Nine Weeks Ended
As ReportedOther ItemsNon-GAAP (Excluding Items)
Gross profit$186,772 $— $186,772 
Selling, general, and administrative expenses174,274 5,217 1169,057 
Operating income (loss)13,271 (5,217)18,488 
Income (loss) before income taxes13,512 (5,217)18,729 
Income tax expense (benefit)3,819 (1,247)25,066 
Net income (loss)9,693 (3,970)13,663 
Less: Net loss attributable to redeemable noncontrolling interest— — — 
Net income (loss) attributable to Vera Bradley, Inc.9,693 (3,970)13,663 
Diluted net income (loss) per share available to Vera Bradley, Inc. common shareholders$0.31 $(0.13)$0.44 
Vera Bradley Direct segment operating income (loss)$43,669 $(342)3$44,011 
Vera Bradley Indirect segment operating income$19,877 $— $19,877 
Pura Vida segment operating income (loss)$4,982 $(2,266)4$7,248 
Unallocated corporate expenses$(55,257)$(2,609)5$(52,648)
1Items include $2,372 for severance charges; $2,187 for the amortization of definite-lived intangible assets; and $658 for certain professional fees and consulting fees associated with strategic initiatives
2Related to the tax impact of the items mentioned above
3Related to severance charges
4Related to $2,187 for the amortization of definite-lived intangible assets and $79 for severance charges
5Items include $1,951 for severance charges and $658 associated with certain professional fees and consulting fees for strategic initiatives

















Vera Bradley, Inc.
GAAP to Non-GAAP Reconciliation Thirty-Nine Weeks Ended October 29, 2022
(in thousands, except per share amounts)
(unaudited)
Thirty-Nine Weeks Ended
As ReportedOther ItemsNon-GAAP (Excluding Items)
Gross profit (loss)$178,907 $(7,000)1$185,907 
Selling, general, and administrative expenses195,015 14,057 2180,958 
Impairment of goodwill and intangible assets29,338 29,338 — 
Operating (loss) income(45,096)(50,395)5,299 
(Loss) income before income taxes(45,211)(50,395)5,184 
Income tax (benefit) expense(6,429)(7,898)31,469 
Net (loss) income(38,782)(42,497)3,715 
Less: Net (loss) income attributable to redeemable noncontrolling interest(7,208)(8,285)1,077 
Net (loss) income attributable to Vera Bradley, Inc.(31,574)(34,212)2,638 
Diluted net (loss) income per share available to Vera Bradley, Inc. common shareholders$(1.00)$(1.08)$0.08 
Vera Bradley Direct segment operating income (loss)$32,607 $(5,948)4$38,555 
Vera Bradley Indirect segment operating income (loss)$18,409 $(943)5$19,352 
Pura Vida segment operating (loss) income$(28,831)$(33,143)6$4,312 
Unallocated corporate expenses$(67,281)$(10,361)7$(56,920)
1Items include $6,142 for inventory adjustments associated with the exit of certain technology products and the goodMRKT brand, as well as excess mask products and $858 for PO cancellation fees
2Items include $6,120 for severance charges; $4,038 for consulting fees associated with cost savings initiatives, CEO search, and certain Pura Vida professional fees; $2,305 for the amortization of definite-lived intangible assets; $1,351 for store and right-of-use asset impairment charges; $163 for CEO stock-based compensation associated with retirement; and $80 for goodMRKT brand exit costs            
3Related to the tax impact of the charges mentioned above, as well as goodwill and intangible asset impairment charges
4Related to $4,872 related to an allocation for certain inventory adjustments and PO cancellation fees; $759 for store impairment charges; $302 for goodMRKT brand exit costs; and $15 for severance charges
5Related to an allocation for certain inventory adjustments and PO cancellation fees
6Related to $29,338 of goodwill and intangible asset impairment charges; $2,305 for the amortization of definite-lived intangible assets; $963 for inventory adjustments associated with mask products; $422 for severance charges; and $115 for certain professional fees
7Related to $5,683 for severance charges; $3,923 for consulting fees associated with cost savings initiatives and CEO search; $592 for a right-of-use asset impairment charge; and $163 for CEO stock-based compensation associated with retirement