Vera Bradley (VRA) investor relations material

Executive summary

• Q2 revenues were $70.9 million, down 24.6%–25% year-over-year, with both Direct and Indirect segments experiencing significant declines and results aligning with internal expectations.

• Sequential improvement in comparable store sales and online performance was observed, supported by new product launches and marketing strategies.

• Strategic initiatives are underway to revitalize the brand, sharpen focus, optimize operations, and enhance omnichannel engagement.

• A nationwide CEO search is ongoing, with an interim Executive Chairman and new CFO appointed; $3.0 million in severance charges were recorded for executive transition.

• The company completed the sale of its Pura Vida business, resulting in a $15.2 million loss from discontinued operations for the six-month period.

Financial highlights

• Q2 consolidated revenues were $70.9 million, down from $94.0 million last year; six-month revenues were $122.5 million, down from $162.0 million.

• Q2 net loss from continuing operations was ($4.7 million), or ($0.17) per diluted share; non-GAAP net loss was ($0.5 million), or ($0.02) per share.

• Gross profit for Q2 was $35.5 million (50.1% of net revenues), up in margin from 49.7%–49.9% last year; sequential gross margin improved 600 bps over Q1.

• SG&A expense for Q2 was $40.4 million (57.1% of net revenues); non-GAAP SG&A was $36.3 million (51.2%).

• Q2 operating loss from continuing operations was ($4.6 million), or (6.5%) of net revenues; non-GAAP operating loss was ($0.6 million), or (0.8%).

Outlook and guidance

• No formal guidance provided due to ongoing transformation and dynamic consumer environment; management is focused on executing strategic initiatives for long-term growth.

• Sequential improvements in comps and gross margin are expected as operational discipline is enhanced.