1. Vera Bradley reported Q3 revenues of $62.3 million, down from $70.5 million. 2. The company experienced a net loss of $12.4 million this quarter. 3. Project Sunshine aims to enhance brand focus and operational excellence. 4. Direct channel sales showed sequential improvement over five months. 5. Inventory write-downs impacted profitability significantly this quarter.
FAQ
Why Neutral?
Declining revenues and net losses suggest continued financial challenges, although Project Sunshine shows promise for improvement.
How important is it?
Current financial struggles may influence investor sentiment over the long-term despite some positive initiatives.
Why Long Term?
The success of transformation initiatives may take time to manifest in improved financial results.
Vera Bradley Reports Third Quarter Fiscal Year 2026 Results
FORT WAYNE, Ind., Dec. 11, 2025 (GLOBE NEWSWIRE) -- Vera Bradley, Inc. (Nasdaq: VRA) has announced its financial results for the third quarter and nine-month period ending November 1, 2025. The latest results reflect key developments associated with the Company's ongoing transformation strategy, dubbed Project Sunshine, aimed at rejuvenating the brand and enhancing operational efficiencies.
Progress Under Project Sunshine
“Our third quarter results demonstrate progress in our comprehensive transformation strategy, which we have now branded as Project Sunshine, our five-pillar initiative anchored on reclaiming Vera Bradley’s joyful optimism while fueling operational excellence,” stated Ian Bickley, Executive Chairman of Vera Bradley.
“With third quarter revenues of $62.3 million, our Direct Segments noted sequential improvements across key metrics, including positive comparable Brand channel sales during the crucial back-to-school through Black Friday period,” he added. Bickley expressed confidence in the Company’s direction, attributing early wins to a renewed focus on profitability and cash generation, positioning Vera Bradley for sustainable growth.
Financial Performance Overview
Third Quarter Highlights
For the third quarter, Vera Bradley's consolidated net revenues from continuing operations totaled $62.3 million, a decline from $70.5 million in the same quarter last year. The net loss from continuing operations was ($12.4) million, or ($0.44) per diluted share, influenced primarily by a $5.9 million inventory write-down linked to a shift towards cotton and heritage prints and a $4 million write-off of television media credits.
- Third-quarter revenue: $62.3 million
- Net loss: ($12.4) million or ($0.44) per diluted share
- Impact of inventory write-downs: ($0.35) per diluted share
On a non-GAAP basis, the net loss from continuing operations was ($8.3) million, or ($0.30) per diluted share, compared to ($3.7) million, or ($0.13) per diluted share in the prior year.
Nine-Month Performance Review
For the nine-month period, net revenues totaled $184.8 million, down from $232.4 million last year. The net loss for the nine months was ($35.3) million, equating to ($1.26) per diluted share. This period’s results were notably impacted by the previously mentioned inventory adjustments and media credits.
Non-GAAP net loss from continuing operations in the nine months was ($18.9) million, or ($0.67) per diluted share, compared to ($7.7) million in the prior year.
Segment Performance Insights
The Direct segment revenues for Vera Bradley were reported at $49.7 million, marking a 5.3% decrease from $52.5 million in the previous year’s third quarter. The decline in comparable sales of 5.8% was attributed to reduced traffic and conversion rates in outlet channels, despite showing sequential comparable sales improvement over the quarter.
- Direct segment revenue: $49.7 million (5.3% decrease)
- Indirect segment revenue: $12.6 million (30.2% decrease)
Gross profit was reported at $26.2 million, representing 42.1% of net revenues, a notable decline from $38.4 million or 54.5% of net revenues last year, primarily due to inventory write-downs and increased duty expenses.
Operating Loss and Future Outlook
The company reported a third quarter operating loss from continuing operations of ($12.2) million, equivalent to (19.6%) of net revenues, up from ($8.2) million or (11.6%) in the prior year. This performance signals ongoing challenges within the organizational restructuring while reaffirming the Company’s commitment to its long-term growth strategy.
As Vera Bradley moves forward, the focus remains on operational excellence and the successful implementation of Project Sunshine to drive sustainable growth and profitability.