Vera Bradley, Inc.
For the period ended May 3, 2025. Filed Jun 11, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
May 3, 2025 · Filed Jun 11, 2025
VRA$7.05+1.0%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-11-02; filed 2024-12-11.
0001495320-24-000091
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-05-03; filed 2025-06-11.
0001495320-25-000051
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 107 previous paragraphs and 96 current paragraphs.
52 unchanged; 20 reworded; 24 added; 34 removed; 1 previous and 0 current paragraphs rearranged.
Tables are not compared: 4 previous and 4 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (24)
Current report
Strategic Progress. We continued to advance our long-term strategic initiative, Project Restoration, aimed at transforming our business model and brand positioning. As an organization, we remain focused on disciplined expense management and have fostered a culture centered on financial responsibility. We’ve taken further steps to streamline our organizational structure, right-size our leadership team, and align our cost base with the scale of our business efforts that are especially important in today’s challenging macroeconomic environment and critical to achieving our long-term goals.
Current report
In parallel, we’ve invested in key capabilities such as customer data science, business analytics, and pricing optimization. These investments enhance our ability to gather insights, analyze trends, and make data-driven decisions to operate more efficiently. While we remain confident in our strategic path, we are continuously refining our approach based on sales performance and customer feedback.
Current report
Macroeconomic and Other Factors. We continue to closely monitor the dynamic economic landscape and are actively managing the impact of elevated tariff costs. Ongoing inflationary pressures and related macroeconomic factors have continued to affect consumer discretionary spending. As a result, our Vera Bradley outlet and full-line stores continue to experience softer performance during the first quarter of fiscal 2026. We remain focused on executing our strategic initiatives and adapting to current market conditions to position the business for long-term growth.
Current report
Management Transition
Current report
On June 11, 2025, the Company announced that Jacqueline Ardrey, the Company’s Chief Executive Officer, will be departing the Company. The Board of Directors has initiated a national search for a successor.
Current report
In connection with the leadership transition, effective July 7, 2025, current Board of Director member, Ian Bickley, will assume the role of Executive Chairman, a newly established position. In this interim executive capacity, Mr. Bickley will provide leadership and strategic guidance during the CEO transition period and will also serve as Chairman of the Company’s Board of Directors. The Executive Chairman role is expected to be temporary and limited to the duration of the CEO transition.
Current report
Additionally, the Company announced the appointment of Martin Layding as Chief Financial Officer, effective June 12, 2025. Michael Schwindle, the Company’s current CFO, has announced his resignation, effective June 30, 2025.
Current report
Recent Transactions
Current report
We completed the sale of Pura Vida on March 31, 2025. See Note 14 to the Notes to the Condensed Consolidated Financial Statements herein for additional information. The loss on sale was presented as part of results of the discontinued operations. We have reflected the results of operations of the Pura Vida business as discontinued operations in the Consolidated Statement of Operations. This business was historically presented as its own reporting unit.
Current report
Net Revenues
Current report
Gross Profit
Current report
Net Revenues
Current report
For the thirteen weeks ended May 3, 2025, net revenues decreased $16.2 million, or 24.0%, to $51.7 million, from $67.9 million in the comparable prior-year period.
Current report
VB Indirect. For the thirteen weeks ended May 3, 2025, net revenues in the VB Indirect segment decreased $3.0 million, or 25.6%, to $8.6 million, from $11.5 million in the comparable prior-year period. The decrease was primarily due to a decrease in key account orders, specialty account orders, and liquidation sales.
Current report
Gross Profit
Current report
Operating Loss from Continuing Operations
Current report
For the thirteen weeks ended May 3, 2025, operating loss from continuing operations increased $7.3 million, or 68.2%, to $(17.9) million, from $(10.6) million in the comparable prior-year period. As a percentage of net revenues, operating loss from continuing operations was (34.6)% and (15.6)% for the thirteen weeks ended May 3, 2025 and May 4, 2024, respectively. Operating loss from continuing operations increased due to the factors described in the captions above.
Current report
Interest Income, Net
Current report
For the thirteen weeks ended May 3, 2025, interest income decreased $0.5 million, to $4.0 thousand from $0.5 million in the comparable prior-year period.
Current report
Income Tax Expense (Benefit)
Current report
Net Loss from Continuing Operations
Current report
Net Loss from Discontinued Operations
Current report
For the thirteen weeks ended May 3, 2025, there was a net loss from discontinued operations of $(15.2) million, a $14.7 million increase, from $(0.5) million in the comparable prior-year period. The increase in loss from discontinued operations was primarily due to the loss on sale of business recorded in the current year period.
Removed paragraphs (34)
Previous report
Strategic Progress. We launched the first of our customer-facing stages of Project Restoration in July of fiscal 2025, which included new products, store remodels, website redesigns, and customer marketing. Project Restoration is focused on four key pillars of the business (Consumer, Brand, Product, and Channel) for each brand to help drive long-term profitable growth.
Previous report
In addition, we continued to identify cost reductions as part of our overall plan to right-size the expense structure of our Company and lay the groundwork for success to help drive long-term profitable growth. Savings are being derived across various areas of the Company, including retail store efficiencies, marketing expenses, information technology contracts, professional services, logistics and operational costs, and corporate payroll. We will continue to review our expense structure for additional cost reduction opportunities.
Previous report
Macroeconomic and Other Factors. We continue to be impacted by higher tariffs from previously duty-free countries, where we source products, as a result of the expiration of the Generalized System of Preferences (“GSP”) duty-free status at the end of calendar year 2020. In addition, the macroeconomic environment has been further challenged by inflationary pressures and other related factors that have impacted consumer discretionary spending. We continued to see weakness in both the Vera Bradley outlet store business and full line stores in the third quarter of fiscal 2025.
Previous report
•Pura Vida business expenses primarily related to employee compensation and store expenses.
Previous report
Operating (loss) income is equal to gross profit less SG&A expenses plus other income, net. Operating (loss) income excludes interest income, interest expense, and income taxes.
Previous report
Net (loss) income is equal to operating (loss) income plus interest income less interest expense and income taxes.
Previous report
Impairment Charges
Previous report
Intangible Assets
Previous report
We perform our annual impairment test of the indefinite-lived Pura Vida brand during the second quarter of each fiscal year.
Previous report
Refer to Note 15 to the Notes to the Consolidated Financial Statements filed with the SEC on Form 10-K for the fiscal year ended February 3, 2024, for additional information regarding the indefinite-lived intangible assets impairment test and impairment charges recorded during fiscal 2024. There were no impairment charges recorded during the thirteen and thirty-nine weeks ended November 2, 2024 or October 28, 2023. Depending on the results of future impairment tests, it is possible additional impairments could be identified in future periods, and such amounts could be material.
Previous report
Long-lived Assets
Previous report
Property, plant, and equipment and lease right-of-use assets (the “asset group” for store-related assets) are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset group may not be recoverable. The reviews are conducted at the lowest identifiable level of cash flows. If the estimated undiscounted future cash flows related to the asset group are less than the carrying value, we recognize a loss equal to the difference between the carrying value and the fair value, as further defined in Note 5 to the Notes to the Condensed Consolidated Financial Statements herein. Impairment charges of $2.2 million were recognized during the thirteen and thirty-nine weeks ended November 2, 2024, for store property, plant, and equipment charges, which are included in SG&A expenses within the Condensed Consolidated Statements of Operations and within impairment charges in the Condensed Consolidated Statements of Cash Flows. $2.1 million of the impairment charge is included in the Direct segment, and $0.1 million is included in the Pura Vida segment for the thirteen and thirty-nine weeks ended November 2, 2024. There were no impairment charges recorded during the thirteen and thirty-nine weeks ended October 28, 2023. We are unable to predict the extent of the impact that the inflationary environment could have on our operations, the economy, or other factors; therefore, it is possible additional impairments could be identified in future periods, and such amounts could be material.
Previous report
For the thirteen weeks ended November 2, 2024, net revenues decreased $34.4 million, or 29.9%, to $80.6 million, from $115.0 million in the comparable prior-year period.
Previous report
VB Indirect. For the thirteen weeks ended November 2, 2024, net revenues in the VB Indirect segment decreased $7.0 million, or 27.9%, to $18.0 million, from $25.0 million in the comparable prior-year period. The decrease was primarily due to a decline in specialty and key account orders, as well as a decrease in liquidation sales.
Previous report
Pura Vida. For the thirteen weeks ended November 2, 2024, net revenues in the Pura Vida segment decreased $7.6 million, or 42.9%, to $10.1 million, from $17.7 million in the comparable prior-year period. The decrease was primarily due to a decline in e-commerce and wholesale sales.
Previous report
For the thirteen weeks ended November 2, 2024, net other income totaled $0.1 million, consistent with the comparable prior-year period.
Previous report
For the thirteen weeks ended November 2, 2024, there was an operating loss of $(10.5) million, a $17.3 million decrease, or 254.3%, from operating income of $6.8 million in the comparable prior-year period. As a percentage of net revenues, operating (loss) income was (13.0)% and 5.9% for the thirteen weeks ended November 2, 2024 and October 28, 2023, respectively. Operating loss increased due to the factors described in the captions above.
Previous report
VB Direct. For the thirteen weeks ended November 2, 2024, operating income in the VB Direct segment decreased $13.6 million, or 86.6%, to $2.1 million from $15.7 million in the comparable prior-year period. As a percentage of VB Direct segment net revenues, operating income in the VB Direct segment was 4.0% and 21.7% for the thirteen weeks ended November 2, 2024 and October 28, 2023, respectively. The decrease in operating income as a percentage of VB Direct segment net revenues was primarily due to SG&A expense deleverage associated with decreased sales as well as property, plant, and equipment charges of $2.1 million.
Previous report
VB Indirect. For the thirteen weeks ended November 2, 2024, operating income in the VB Indirect segment decreased $2.9 million, or 32.3%, to $6.1 million from $9.0 million in the comparable prior-year period. As a percentage of VB Indirect segment net revenues, operating income in the VB Indirect segment was 33.7% and 35.9% for the thirteen weeks ended November 2, 2024 and October 28, 2023, respectively. The decrease in operating income as a percentage of VB Indirect segment net revenues was primarily due to SG&A expense deleverage associated with decreased sales, partially offset by an increase in gross margin due to a decrease in liquidation sales.
Previous report
Pura Vida. For the thirteen weeks ended November 2, 2024, operating loss in the Pura Vida segment increased $2.1 million, or 367.4%, to $(2.7) million from $(0.6) million in the comparable prior-year period. As a percentage of Pura Vida segment net revenues, operating loss in the Pura Vida segment was (26.9)% and (3.3)% for the thirteen weeks ended November 2, 2024 and October 28, 2023, respectively. The increase in operating loss as a percentage of Pura Vida net revenues was primarily due to SG&A expense deleverage associated with a decrease in sales, an increase in promotional activity, and property, plant, and equipment charges of $0.1 million.
Previous report
Income Tax Expense
Previous report
Thirty-Nine Weeks Ended November 2, 2024, Compared to Thirty-Nine Weeks Ended October 28, 2023
Previous report
For the thirty-nine weeks ended November 2, 2024, net revenues decreased $65.5 million, or 19.4%, to $272.0 million, from $337.5 million in the comparable prior-year period.
Previous report
VB Indirect. For the thirty-nine weeks ended November 2, 2024, net revenues in the VB Indirect segment decreased $6.4 million, or 11.1%, to $51.3 million, from $57.7 million in the comparable prior-year period. The decrease was primarily due to a decrease in specialty account orders, liquidation sales, and key account orders.
Previous report
Pura Vida. For the thirty-nine weeks ended November 2, 2024, net revenues in the Pura Vida segment decreased $23.3 million, or 37.1%, to $39.6 million, from $62.9 million in the comparable prior-year period. The decrease was primarily due to a decline in e-commerce and wholesale sales, partially offset by an increase in retail store sales associated with the opening of two new retail stores in the current-year period.
Previous report
For the thirty-nine weeks ended November 2, 2024, gross profit decreased $44.9 million, or 24.0%, to $141.9 million, from $186.8 million in the comparable prior-year period. As a percentage of net revenues, gross profit decreased to 52.2% for the thirty-nine weeks ended November 2, 2024, from 55.3% in the comparable prior-year period. Current year gross margin was negatively impacted by sales channel mix, increases in promotional activity, and one-time vendor charges.
Previous report
Selling, General, and Administrative Expenses
Previous report
For the thirty-nine weeks ended November 2, 2024, SG&A expenses decreased $12.7 million, or 7.3%, to $161.6 million, from $174.3 million in the comparable prior-year period. As a percentage of net revenues, SG&A expenses increased to 59.4% for the thirty-nine weeks ended November 2, 2024, from 51.6% in the comparable prior-year period. SG&A expenses related to Vera Bradley and corporate unallocated were $135.1 million compared to $140.5 million in the comparable prior-year period. SG&A expenses related to Pura Vida were $26.5 million compared to $33.7 million in the comparable prior-year period. For the thirty-nine weeks ended November 2, 2024, consolidated SG&A expenses decreased primarily due to a $10.9 million reduction in employee-related costs, including lower variable compensation, reduced headcount, and decrease in severance charges compared to the prior-year period; a $1.8 million reduction in variable selling expenses resulting from sales decreases as described above; a $0.8 decrease in professional fees; a $0.8 million reduction in intangible asset amortization; and a $0.6 million reduction in building expenses. These decreases were partially offset by $2.2 million of property, plant, and equipment impairment charges in the current year period.
Previous report
Other Income, Net
Previous report
For the thirty-nine weeks ended November 2, 2024, there was an operating loss of $(19.0) million, a $32.3 million decrease, or 243.4%, from operating income of $13.3 million in the comparable prior-year period. As a percentage of net revenues, operating (loss) income was (7.0)% and 3.9% for the thirty-nine weeks ended November 2, 2024 and October 28, 2023, respectively. Operating loss increased due to the factors described in the captions above.
Previous report
Pura Vida. For the thirty-nine weeks ended November 2, 2024, there was an operating loss in the Pura Vida segment of $(3.8) million, a $8.8 million decrease, or 176.7%, from operating income of $5.0 million in the comparable prior-year period. As a percentage of Pura Vida segment net revenues, operating (loss) income in the Pura Vida segment was (9.7)% and 7.9% for the thirty-nine weeks ended November 2, 2024 and October 28, 2023, respectively. The increase in operating loss as a percentage of Pura Vida net revenues was primarily due to SG&A expense deleverage associated with decreased e-commerce and wholesale revenues, an increase in promotional activity, as well as property, plant, and equipment charges of $0.1 million.
Previous report
Corporate Unallocated. For the thirty-nine weeks ended November 2, 2024, unallocated expenses decreased $5.9 million, or 10.6%, to $49.4 million from $55.3 million in the comparable prior-year period. The decrease in unallocated expenses was primarily due to a $6.3 million reduction in employee-related costs, including lower variable compensation, reduced headcount, and decrease in severance charges compared to the prior-year period, as well as a $0.8 million reduction in professional fees. These decreases were partially offset by an increase in advertising spend of $0.8 million primarily related to Project Restoration initiatives and $0.4 million of net other expenses.
Previous report
Income Tax (Benefit) Expense
Previous report
The effective tax rate for the thirty-nine weeks ended November 2, 2024, was 15.3%, compared to 28.3% for the thirty-nine weeks ended October 28, 2023. The change in year-over-year effective tax rate was primarily due to a change in the projection of the Company's annual income in the current fiscal quarter. The year-over-year effective tax rate also reflects the relative impact of permanent and discrete items in the current-year period compared to the prior-year period, primarily as a result of the impact of foreign operations as well as non-deductible executive compensation. See Note 7 "Income Taxes" of the Notes to the Condensed Consolidated Financial Statements for additional information about the Company's interim provision for income taxes.
Reworded paragraphs (20)
Previous wording
The following discussion summarizes the significant factors affecting the condensed consolidated operating results, financial condition, liquidity, and cash flows of the Company as of and for the thirteen and thirty-nine weeks ended November 2, 2024 and October 28, 2023. The following discussion should be read in conjunction with our Annual Report on Form 10-K for the fiscal year ended February 3, 2024, and our unaudited condensed consolidated financial statements and the related notes included in Item 1 of this Quarterly Report. The results of operations for the thirteen and thirty-nine weeks ended November 2, 2024, are not necessarily indicative of the results to be expected for the full fiscal year.
Current wording
The following discussion summarizes the significant factors affecting the condensed consolidated operating results, financial condition, liquidity, and cash flows of the Company as of and for the thirteen weeks ended May 3, 2025 and May 4, 2024. The following discussion should be read in conjunction with our Annual Report on Form 10-K for the fiscal year ended February 1, 2025, and our unaudited condensed consolidated financial statements and the related notes included in Item 1 of this Quarterly Report. The results of operations for the thirteen weeks ended May 3, 2025, are not necessarily indicative of the results to be expected for the full fiscal year.
Previous wording
Net revenues reflect sales of our merchandise and revenue from distribution and shipping and handling fees, less returns and discounts. Revenues for the VB Direct segment reflect sales through Vera Bradley full-line and outlet stores; e-commerce sites (verabradley.com, outlet.verabradley.com, and international.verabradley.com); and the Vera Bradley annual outlet sale. Revenues for the VB Indirect segment reflect sales of Vera Bradley-branded products to specialty retail partners; key accounts consisting of 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. Revenues for the Pura Vida segment reflect revenues generated through the Pura Vida websites (www.puravidabracelets.com and www.puravidabracelets.eu); through the distribution of Pura Vida-branded products to wholesale retailers; and through Pura Vida retail stores.
Current wording
Net revenues reflect sales of our merchandise and revenue from distribution and shipping and handling fees, less returns and discounts. Revenues for the VB Direct segment reflect sales through Vera Bradley full-line and outlet stores; e-commerce sites (verabradley.com, outlet.verabradley.com, and international.verabradley.com); and the Vera Bradley annual outlet sale. Revenues for the VB Indirect segment reflect sales of Vera Bradley-branded products to specialty retail partners; key accounts consisting of 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.
Previous wording
The following tables present net revenues and operating income (loss) by operating segment, both in dollars and as a percentage of associated net revenues, and store data for the periods indicated ($ in thousands, except as otherwise indicated):
Current wording
The following tables present net revenues and operating (loss) income by operating segment, both in dollars and as a percentage of associated net revenues, and store data for the periods indicated ($ in thousands, except as otherwise indicated):
Previous wording
(1)Includes Vera Bradley full-line and outlet stores. These figures do not include Pura Vida retail locations or Pura Vida e-commerce operations.
Current wording
(1)Includes Vera Bradley full-line and outlet stores.
Previous wording
VB Direct. For the thirty-nine weeks ended November 2, 2024, net revenues in the VB Direct segment decreased $35.8 million, or 16.5%, to $181.1 million, from $216.9 million in the comparable prior-year period. Vera Bradley comparable sales decreased 16.0%, which includes a 20.1% decrease in comparable store sales as well as a decrease in e-commerce sales of 8.3%. In addition, non-comparable store revenue decreased $1.2 million. The decrease in comparable sales and comparable store sales was primarily due to reduced traffic, conversion, and units sold in the full-line and outlet channels.
Current wording
VB Direct. For the thirteen weeks ended May 3, 2025, net revenues in the VB Direct segment decreased $13.3 million, or 23.6%, to $43.1 million, from $56.4 million in the comparable prior-year period. Vera Bradley comparable sales decreased 25.0%, which includes a 34.3% decrease in comparable store sales as well as a decrease in e-commerce sales of 11.7%. In addition, non-comparable revenue decreased $0.3 million. The decrease in comparable sales and comparable store sales was primarily due to reduced traffic, conversion, and units sold in the full-line, outlet, and e-commerce channels.
Previous wording
For the thirteen weeks ended November 2, 2024, gross profit decreased $19.4 million, or 30.8%, to $43.6 million, from $63.0 million in the comparable prior-year period. As a percentage of net revenues, gross profit decreased to 54.1% for the thirteen weeks ended November 2, 2024, from 54.8% in the comparable prior-year period. Current year gross margin was negatively impacted by sales channel mix as well as an increase in outbound freight costs.
Current wording
For the thirteen weeks ended May 3, 2025, gross profit decreased $11.2 million, or 33.1%, to $22.8 million, from $34.0 million in the comparable prior-year period. As a percentage of net revenues, gross profit decreased to 44.1% for the thirteen weeks ended May 3, 2025, from 50.1% in the comparable prior-year period. Current year gross margin was negatively impacted by channel mix shifts from higher to lower margin channels and increased incremental shipping costs from a higher mix of digital channels.
Previous wording
For the thirteen weeks ended November 2, 2024, SG&A expenses decreased $2.2 million, or 3.8%, to $54.2 million, from $56.4 million in the comparable prior-year period. As a percentage of net revenues, SG&A expenses increased to 67.3% for the thirteen weeks ended November 2, 2024, from 49.0% in the comparable prior-year period. SG&A expenses related to Vera Bradley and corporate unallocated were $46.3 million compared to $45.0 million in the comparable prior-year period. SG&A expenses related to Pura Vida were $7.9 million compared to $11.4 million in the comparable prior-year period. For the thirteen weeks ended November 2, 2024, consolidated SG&A expenses decreased primarily due to a $3.1 million reduction in employee-related costs, including lower variable compensation and reduced headcount; $0.8 million selling expense reduction resulting from sales decreases as described above; and $0.7 million intangible asset amortization in the prior-year period that did not occur in the current-year period. These decreases were partially offset by $2.2 million of property, plant, and equipment impairment charges in the current year period.
Current wording
For the thirteen weeks ended May 3, 2025, SG&A expenses decreased $4.3 million, or 9.5%, to $40.8 million, from $45.1 million in the comparable prior-year period. As a percentage of net revenues, SG&A expenses increased to 79.0% for the thirteen weeks ended May 3, 2025, from 66.4% in the comparable prior-year period. For the thirteen weeks ended May 3, 2025, consolidated SG&A expenses decreased primarily due to a $4.0 million reduction in employee-related costs, including reduced headcount and lower variable compensation; a $1.5 million reduction in advertising costs resulting from sales decreases as described above; and $0.1 million reduction in net other expenses. These decreases were partially offset by $1.0 million of property, plant, and equipment impairment charges in the current year period.
Previous wording
For the thirty-nine weeks ended November 2, 2024, net other income decreased $0.1 million to $0.7 million, from $0.8 million in the comparable prior-year period. The decrease in net other income was primarily due to ticket sales from the Vera Bradley annual outlet sale.
Current wording
For the thirteen weeks ended May 3, 2025, net other income decreased $0.2 million to $0.2 million, from $0.4 million in the comparable prior-year period. The decrease in net other income was primarily due to a legal settlement that occurred in the prior year period.
Previous wording
VB Direct. For the thirty-nine weeks ended November 2, 2024, operating income in the VB Direct segment decreased $24.2 million, or 55.3%, to $19.5 million from $43.7 million in the comparable prior-year period. As a percentage of VB Direct segment net revenues, operating income in the VB Direct segment was 10.8% and 20.1% for the thirty-nine weeks ended November 2, 2024 and October 28, 2023, respectively. The decrease in operating income as a percentage of VB Direct segment net revenues was primarily due to a decrease in gross margin as a percentage of net revenues as described above, SG&A expense deleverage associated with decreased sales, as well as property, plant, and equipment charges of $2.1 million.
Current wording
VB Direct. For the thirteen weeks ended May 3, 2025, there was an operating loss in the VB Direct segment of $(5.5) million, a $9.5 million increase, or 238.6%, from operating income of $4.0 million in the comparable prior-year period. As a percentage of VB Direct segment net revenues, operating (loss) income in the VB Direct segment was (12.8)% and 7.1% for the thirteen weeks ended May 3, 2025 and May 4, 2024, respectively. The increase in operating (loss) income as a percentage of VB Direct segment net revenues was primarily due to a decrease in gross margin as a percentage of net revenues as described above, SG&A expense deleverage associated with decreased sales, as well as property, plant, and equipment impairment charges of $1.0 million.
Previous wording
VB Indirect. For the thirty-nine weeks ended November 2, 2024, operating income in the VB Indirect segment decreased $5.3 million, or 26.4%, to $14.6 million from $19.9 million in the comparable prior-year period. As a percentage of VB Indirect segment net revenues, operating income in the VB Indirect segment was 28.5% and 34.4% for the thirty-nine weeks ended November 2, 2024 and October 28, 2023, respectively. The decrease in operating income as a percentage of VB Indirect segment net revenues was due to a decrease in gross margin as a percentage of net revenues as well as SG&A expense deleverage associated with decreased sales.
Current wording
VB Indirect. For the thirteen weeks ended May 3, 2025, operating income in the VB Indirect segment decreased $1.8 million, or 48.2%, to $2.0 million from $3.8 million in the comparable prior-year period. As a percentage of VB Indirect segment net revenues, operating income in the VB Indirect segment was 23.1% and 33.2% for the thirteen weeks ended May 3, 2025 and May 4, 2024, respectively. The decrease in operating income as a percentage of VB Indirect segment net revenues was due to a decrease in gross margin as a percentage of net revenues as well as SG&A expense deleverage associated with decreased sales.
Previous wording
Corporate Unallocated. For the thirteen weeks ended November 2, 2024, unallocated expenses decreased $1.4 million, or 7.9%, to $15.9 million from $17.3 million in the comparable prior-year period. The decrease in unallocated expenses was primarily due to a decrease in employee related expenses of $1.2 million and $0.2 million in other net corporate expense reductions.
Current wording
Corporate Unallocated. For the thirteen weeks ended May 3, 2025, unallocated expenses decreased $4.1 million, or 22.4%, to $14.3 million from $18.4 million in the comparable prior-year period. The decrease in unallocated expenses was primarily due to a $2.0 million reduction in employee-related costs, including reduced headcount and lower variable compensation; $1.8 million reduction in advertising spend; $0.3 million reduction in net other expenses.
Previous wording
The effective tax rate for the thirteen weeks ended November 2, 2024, was (23.5)%, compared to 27.6% for the thirteen weeks ended October 28, 2023. The change in year-over-year effective tax rate was primarily due to a change in the projection of the Company's annual income in the current fiscal quarter. The year-over-year effective tax rate also reflects the relative impact of permanent and discrete items in the current-year period compared to the prior-year period, primarily as a result of the impact of foreign operations as well as non-deductible executive compensation. See Note 7 "Income Taxes" of the Notes to the Condensed Consolidated Financial Statements for additional information about the Company's interim provision for income taxes.
Current wording
The effective tax rate for the thirteen weeks ended May 3, 2025, was (2.3)%, compared to 25.1% for the thirteen weeks ended May 4, 2024. The change in year-over-year effective tax rate was primarily attributable to a full valuation allowance recorded against the Company's net deferred tax assets. See Note 7 "Income Taxes" of the Notes to the Condensed Consolidated Financial Statements for additional information about the Company's interim provision for income taxes.
Previous wording
For the thirteen weeks ended November 2, 2024, there was an net loss of $(12.8) million, a $17.9 million decrease, or 350.1%, from net income of $5.1 million in the comparable prior-year period due to the factors described in the captions above.
Current wording
For the thirteen weeks ended May 3, 2025, there was a net loss from continuing operations of $(18.3) million, a $10.7 million increase, from $(7.6) million in the comparable prior-year period due to the factors described in the captions above.
Previous wording
For the thirty-nine weeks ended November 2, 2024, there was a net loss of $(15.2) million, a $24.9 million decrease, from net income of $9.7 million in the comparable prior-year period due to the factors described in the captions above.
Current wording
For the thirteen weeks ended May 3, 2025, there was a net loss of $(33.5) million, a $25.4 million increase, from $(8.1) million in the comparable prior-year period due to the factors described in the captions above.
Previous wording
Net Cash (Used in) Provided by Operating Activities
Current wording
Net Cash Used in Operating Activities
Previous wording
Net cash (used in) provided by operating activities consists primarily of net (loss) income adjusted for non-cash items, including depreciation, amortization, impairment charges, deferred taxes, and stock-based compensation; and the effect of changes in assets and liabilities.
Current wording
Net cash used in operating activities consists primarily of net loss adjusted for non-cash items, including depreciation, amortization, impairment charges, deferred taxes, and stock-based compensation; and the effect of changes in assets and liabilities.
Previous wording
Net cash used in operating activities for the thirty-nine weeks ended November 2, 2024 was $35.8 million compared to net cash provided by operating activities of $21.1 million for the thirty-nine weeks ended October 28, 2023. The increase in cash used in operating activities was primarily related to a net loss of $(15.2) million, a $24.9 million decrease, from net income in the comparable prior-year period, a change in deferred income taxes of $3.3 million, $1.6 million in other non-cash items, partially offset by a $2.2 million impairment charge in the current year period. Additionally, there was a change in assets and liabilities of $29.2 million, primarily driven by an increase in inventory receipts in the current year period.
Current wording
Net cash used in operating activities for the thirteen weeks ended May 3, 2025 was $17.9 million compared to $14.5 million for the thirteen weeks ended May 4, 2024. The increase in cash used in operating activities was primarily related to a net loss of $(33.5) million, a $25.4 million increase, from the comparable prior-year period, partially offset by a loss on sale of business of $15.2 million, and a change in assets and liabilities of $6.1 million.
Previous wording
Net cash used in investing activities was $6.1 million for the thirty-nine weeks ended November 2, 2024 compared to $12.5 million for the thirty-nine weeks ended October 28, 2023. The decrease in cash used in investing activities was a result of the purchase of the remaining 25% interest in Pura Vida for $10.0 million in the prior year, partially offset by an increase in property, plant, and equipment spending of $3.5 million primarily as a result of Vera Bradley outlet new store openings in the current year as well as Project Restoration initiatives.
Current wording
Net cash used in investing activities was $1.0 million for the thirteen weeks ended May 3, 2025 compared to $0.9 million for the thirteen weeks ended May 4, 2024. The decrease in cash used in investing activities was a result of a decrease in property, plant, and equipment spending of $1.0 million primarily as a result of Project Restoration initiatives in the prior-year period, partially offset by $0.9 million proceeds from the sale of Pura Vida.
Previous wording
Net cash used in financing activities was $21.9 million for the thirty-nine weeks ended November 2, 2024 compared to $2.9 million for the thirty-nine weeks ended October 28, 2023. The increase in cash used in financing activities was primarily due to $21.2 million of common stock repurchases in the current-year period compared to $1.9 million in the comparable prior-year period.
Current wording
Net cash used in financing activities was $0.2 million for the thirteen weeks ended May 3, 2025 compared to $6.7 million for the thirteen weeks ended May 4, 2024. The decrease in cash used in financing activities was primarily due to $6.3 million of common stock repurchases in the prior-year period compared to no common stock repurchases in the current-year period.
Previous wording
On September 7, 2018, Vera Bradley Designs, Inc. (“VBD”), a wholly-owned subsidiary of the Company, entered into an asset-based revolving Credit Agreement (the “Credit Agreement”) among VBD, JPMorgan Chase Bank, N.A., as administrative agent, and the lenders from time to time party thereto. On August 3, 2023, certain subsidiaries of the Company, JP Morgan Chase Bank, N.A., as the administrative agent, and lenders from time to time party thereto, entered into a Third Amendment (the “Third Amendment”) to the Credit Agreement. The Credit Agreement provides for certain credit facilities to VBD in an aggregate principal amount not to initially exceed the lesser of $75.0 million or the amount of borrowing availability determined in accordance with a borrowing base of certain assets. Borrowings under the credit facilities are available to finance general corporate purposes of VBD and its subsidiaries, including but not limited to Vera Bradley International, LLC, Vera Bradley Sales, LLC, and Creative Genius, LLC (collectively, the “Named Subsidiaries”). The Credit Agreement also contains an option for VBD to arrange with lenders to increase the aggregate principal amount by up to $50.0 million.
Current wording
On September 7, 2018, Vera Bradley Designs, Inc. (“VBD”), a wholly-owned subsidiary of the Company, entered into an asset-based revolving Credit Agreement (the “Credit Agreement”) among VBD, JPMorgan Chase Bank, N.A., as administrative agent, and the lenders from time to time party thereto. On March 11, 2025, certain subsidiaries of the Company, JP Morgan Chase Bank, N.A., as the administrative agent, and lenders from time to time party thereto, entered into a Fourth Amendment (the “Fourth Amendment”) to the Credit Agreement. The Credit Agreement provides for certain credit facilities to VBD in an aggregate principal amount not to initially exceed the lesser of $75.0 million or the amount of borrowing availability determined in accordance with a borrowing base of certain assets. Borrowings under the credit facilities are available to finance general corporate purposes of VBD and its subsidiaries, including but not limited to Vera Bradley International, LLC, Vera Bradley Sales, LLC, and Creative Genius, LLC (collectively, the “Named Subsidiaries”). The Credit Agreement also contains an option for VBD to arrange with lenders to increase the aggregate principal amount by up to $50.0 million.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
VB Direct. For the thirteen weeks ended November 2, 2024, net revenues in the VB Direct segment decreased $19.8 million, or 27.4%, to $52.5 million, from $72.3 million in the comparable prior-year period. Vera Bradley comparable sales decreased 27.2%, which includes a 32.6% decrease in comparable store sales and a 17.5% decrease in e-commerce sales. In addition, non-comparable store revenue decreased $0.5 million. The decrease in comparable sales and comparable store sales was primarily due to reduced traffic, conversion, and units sold in the e-commerce, full-line, and outlet channels.