Consolidated net revenues totaled
Net income totaled
Non-GAAP net income totaled
Strong balance sheet, with cash and cash equivalents of
Management provides guidance for fiscal year ending
In this release,
Fourth Quarter and Fiscal Year-End Comments
“We have improved discipline around gross margin management and cost control, which will continue. In addition to this discipline, our strategic efforts are focused on stabilizing and growing our sales base. Our recent sales results demonstrate the need for change in our branding, product assortments, and store environments – the exact areas that Project Restoration addresses to position
“For the fourth quarter, Vera Bradley brand revenues fell 6.1%, with soft sales in all Direct channels,” Ardrey continued. “Sales were also negatively impacted by store closures over the last twelve months. Customers responded to some of our latest product collaborations and to our newer product offerings like leather, but overall, they continued to be more discriminating with their discretionary spending in light of the macroeconomic environment. A bright spot was the November transformation of our online outlet from a flash-sale model to an everyday extension of our outlet stores. This brought new customers to the brand and helped offset weakness in the outlet store channel. On the Indirect side, our wholesale partners were cautious with inventory buys in the fourth quarter.
“Pura Vida year-over-year fourth quarter sales declined 21.6%, primarily due to decreases in ecommerce and wholesale revenues, as external marketing costs continued to rise and marketing effectiveness remained challenging. Our holiday gifts, like our annual Advent Box, and engraving categories performed best for the quarter. While we are actively addressing revenue stabilization and marketing effectiveness at Pura Vida, our key focus is managing the business for profitability. As a result, we drove meaningful year-over-year operating margin improvement for the fourth quarter and full year.”
Ardrey continued, “We continued to strengthen our already-strong balance sheet, adding to our year-over-year cash position while strategically reducing our inventory levels. This strength is critical as we navigate an uncertain retail climate while supporting Project Restoration initiatives.”
“We ended the fiscal year with consolidated revenues of nearly
Update on Project Restoration and Looking Ahead
Ardrey noted, “A little over a year ago, we began a comprehensive review of the consumer, brand, product, and channel components for both of our brands. This work culminated in our long-term strategic plan, Project Restoration, which addresses each of these four pillars. Through Project Restoration, we are taking targeted and prudent actions to stabilize revenues, while remaining focused on strong financial discipline. We believe execution of Project Restoration will drive long-term profitable growth and deliver value to our shareholders.
“Over the last twelve months, we have made significant progress on this Company-wide, comprehensive initiative, focusing on the four key pillars of the business for each brand.
“At Vera Bradley, Project “New Day” launches in mid-July, and is the first manifestation of our Project Restoration work and a full pivot from where we are today. It includes, among other things, the reveal of our new and elevated full-line branding and marketing, product, store design, and website. Our work on this initiative was informed by consumer research and current perceptions of the brand from both buyers and non-buyers. We believe we have the ability to attract new customers while keeping our current fans through product innovations and new marketing campaigns designed to inspire joy and connection. Our new assortment has broad appeal and uses new, higher quality, and softer fabrics and styles designed to not only look great, but feel great.
“I’d like to give you some more details on the progress within each pillar:
- Consumer: We are focusing on restoring brand relevancy, targeting casual and feminine 35 to 54 year old women who value both fashion and function. Our focus on the 35 to 54 year old led us in search of data to understand where and how she shops. We are using this data to target new customers and embark on new partnerships, licensing deals, and collaborations to extend our reach.
- Brand: We are strategically marketing our distinctive and unique position as a feminine, fashionable brand that connects with consumers on a deep, emotional level. Vera Bradley is a strong brand, with tremendous brand recognition, and we are going to make it even stronger by telling a new story about it. We are refocusing our marketing and elevating our creative efforts through digital marketing, public relations, and store initiatives to drive interest and gain new customers.
- Product: We are refocusing on core categories and items we are “best at,” such as travel and bags, by innovating and expanding within our core products. We are elevating our colorful feminine heritage, keeping it distinctive but more trend-right and modern through updated prints, colors, styles, and designs. We’ve improved the quality of most of our fabrics while keeping our commitment to increased use of preferred fibers, and our retail price structure is unchanged. Although the assortment will look new, it is unmistakably Vera Bradley, and our existing customers will still recognize their favorite styles and our distinctive colors, patterns, and quilting.
- Channel: We are building a balanced footprint that more clearly differentiates our full-line and outlet assortments and experience. We plan to open two full-line stores and one factory store this year, relocate existing stores where needed, and update our full-line stores with new branding and an improved shopping experience. We are also exploring new full-line formats with a focus on lifestyle centers. Finally, maintaining brand-right wholesale relationships is important, and we are actively working with new specialty retailers where we know our customer is shopping. We will also accelerate our digital-first focus and online reach. We are improving our online shopping experience and elevating creative and experiences, while offering our outlet assortment online on verabradleyoutlet.com for the first time ever.
“At Pura Vida, we are shifting our focus to delivering profitability and balancing the ecommerce business with wholesale and retail stores. Pura Vida’s revenues have declined the last two quarters largely as a result of increased digital media costs that led to lower new customer acquisition. We’ve diversified our marketing spend and are making additional efforts to retain customers while continuing to work on each pillar of Project Restoration.
- Consumer: We are sharpening our focus on the 18 to 24 year old collegiate girl. We will shift our marketing strategy to increase appeal to Gen Z, based on our most recent research.
- Brand: We are recentering our brand ethos on “living life to the fullest,” sharing real moments, places, and faces in our marketing campaigns, and sharpening our focus on Gen Z. We are also investing in new tools to improve site experience and conversion.
- Product: We are focusing on delivering unique, fun, playful designs that are affordable and accessible with a dominant emphasis on bracelets and jewelry, as well as other strategic, adjacent categories. We will continue to innovate around string bracelets, jewelry, and accessories.
- Channel: We continue to have a strong focus on restoring profitable e-commerce growth, with a greater focus on repeat purchases, as well as strategic growth of wholesale. Additionally, our success in retail stores has driven us to find new store locations for this year and beyond. We expect to open at least two additional stores this year.”
Summary of Financial Performance for the Fourth Quarter
Consolidated net revenues totaled
For the current year fourth quarter,
For the prior year fourth quarter, Vera Bradley, Inc.’s consolidated net loss totaled
Summary of Financial Performance for the Fiscal Year
Consolidated net revenues totaled
For the current fiscal year, Vera Bradley, Inc.’s consolidated net income totaled
For the prior fiscal year, Vera Bradley, Inc.’s consolidated net loss totaled
Fourth Quarter Details
Current year fourth quarter Vera Bradley Direct segment revenues totaled
Vera Bradley Indirect segment revenues totaled
Pura Vida segment revenues totaled
Fourth quarter consolidated gross profit totaled
Consolidated SG&A expense for the fourth quarter totaled
The Company’s fourth quarter consolidated operating loss totaled
By segment:
- Vera Bradley Direct fourth quarter operating income was
$18.2 million , or 19.6% of Direct net revenues, compared to$18.5 million , or 18.6% of Direct net revenues, in the prior year. On a non-GAAP basis, current year Direct fourth quarter operating income was$18.4 million , or 19.8% of Direct net revenues, compared to$19.0 million , or 19.1% of Direct net revenues, in the prior year. - Vera Bradley Indirect fourth quarter operating income was
$4.4 million , or 27.4% of Indirect net revenues, compared to$4.6 million , or 27.3% of Indirect net revenues, in the prior year. On a non-GAAP basis, current year Indirect fourth quarter operating income was$4.7 million , or 29.3% of Indirect sales, compared to$4.7 million , or 28.3% of Indirect net revenues, in the prior year. - Pura Vida’s current year fourth quarter operating loss was
($7.3) million , or (30.2%) of Pura Vida net revenues, compared to an operating loss of($49.8) million , or (161.2%) of Pura Vida net revenues, in the prior year. On a non-GAAP basis, Pura Vida’s current year fourth quarter operating loss was($1.0) million , or (4.1%) of Pura Vida net revenues, compared to($8.8) million , or (28.4%) of Pura Vida net revenues, in the prior year.
Details for the Fiscal Year
Vera Bradley Direct segment revenues for the current fiscal year totaled
Vera Bradley Indirect segment revenues for the fiscal year totaled
Current year Pura Vida segment revenues totaled
Consolidated gross profit for the current fiscal year totaled
For the fiscal year, consolidated SG&A expense totaled
For the fiscal year, the Company’s consolidated operating income totaled
By segment:
- Vera Bradley Direct operating income was
$61.9 million , or 20.0% of Direct net revenues, compared to$51.1 million , or 15.6% of Direct net revenues, in the prior year. On a non-GAAP basis, current year Direct operating income was$62.4 million , or 20.2% of Direct net revenues, compared to$53.2 million , or 16.2% of Direct net revenues, in the prior year. - Vera Bradley Indirect operating income was
$24.3 million , or 32.9% of Indirect net revenues, compared to$23.0 million , or 31.3% of Indirect net revenues, in the prior year. On a non-GAAP basis, current year Indirect operating income totaled$24.6 million , or 33.3% of Indirect net revenues, compared to$23.3 million , or 31.7%, in the prior year. - Pura Vida’s operating loss was
($2.3) million , or (2.7%) of Pura Vida net revenues, compared to an operating loss of($78.6) million , or (79.9%) of Pura Vida net revenues, in the prior year. On a non-GAAP basis, Pura Vida’s current year operating income was$6.3 million , or 7.2% of Pura Vida net revenues, compared to an operating loss of($5.4) million , or (5.5%) of Pura Vida net revenues, in the prior year.
Balance Sheet
Net capital spending for the fiscal year totaled
Cash and cash equivalents as of
Total fiscal year-end inventory was
During the fourth quarter, the Company repurchased approximately
Forward Outlook
Management is providing estimates for the fiscal year ending
Excluding net revenues, all guidance-related numbers referenced below are non-GAAP. The prior year income statement numbers used in the forward-looking discussion below are also non-GAAP because they exclude the previously disclosed charges for intangible asset impairment charges, amortization of definite-lived intangible assets, severance charges, and professional and consulting fees primarily associated with strategic initiatives. Current year guidance also excludes any similar charges.
For Fiscal 2025, the Company’s expectations are as follows:
- Consolidated net revenues of
$460 to$480 million . Net revenues totaled$470.8 million in Fiscal 2024. We expect Vera Bradley brand sales to grow by low-single digits for the year, with accelerating sales in the second half as we launch our new products, branding, and marketing. We anticipate Pura Vida brand sales will decline in the mid-teen range as we continue to manage the business for profitability by addressing marketing efficiencies impacting ecommerce sales, partially offset by increased retail sales. - A consolidated gross profit percentage of 54.0% to 55.0% compared to 54.5% in Fiscal 2024. The fiscal 2025 gross profit rate is expected to be relatively flat to last year due to product margin improvements and lower supply chain costs, offset by increased shipping costs.
- Consolidated SG&A expense of
$229 to$239 million compared to$234.7 million in Fiscal 2024. Year-over-year SG&A expenses are expected to be relatively flat to last year, driven by incremental marketing investment intended to drive sales and accelerate customer file growth, offset by Company-wide expense reductions and lower Pura Vida expenses. - Consolidated operating income of
$21.0 to$24.5 million compared to$22.6 million in Fiscal 2024. - Free cash flow of approximately
$10 million compared to$44.2 million in Fiscal 2024. - Consolidated diluted EPS of
$0.54 to$0.62 based on diluted weighted-average shares outstanding of 30.1 million and an effective tax rate of approximately 28%. Diluted EPS totaled$0.55 last year. - Net capital spending of approximately
$12 to$14 million compared to$3.8 million in the prior year, reflecting investments associated with new and remodeled stores as well as technology and logistics enhancements.
53rd Week
The current year fourth quarter consisted of 14 weeks compared to 13 weeks in the prior year fourth quarter ended
Non-GAAP Numbers
The current year non-GAAP fourth quarter and fiscal year income statement numbers referenced in this release exclude the previously outlined intangible asset impairment charges, amortization of definite-lived intangible assets, severance charges, and professional and consulting fees primarily associated with strategic initiatives. The prior year non-GAAP fourth quarter income statement numbers referenced in this release exclude the previously outlined charges for goodwill and intangible asset impairment; severance, retention, and stock-based retirement compensation; new CEO sign-on bonus and relocation; amortization of definite-lived intangible assets; purchase order cancellation fees; and consulting and professional fees primarily associated with strategic initiatives. The prior year non-GAAP fiscal year income statement numbers also exclude the previously outlined charges for cost savings initiatives and the CEO search, store and right-of-use asset impairment charges, and goodMRKT exit costs.
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 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
Consistent with
Adjustments to Prior Year Non-GAAP Numbers
The Company continuously evaluates the non-GAAP financial measures it uses, the manner in which non-GAAP financial measures are calculated, and the adjustments it makes to GAAP results to derive non-GAAP financial measures. In the fourth quarter of Fiscal 2024, the Company has now excluded inventory reserve adjustments from non-GAAP financial measures and revised prior period non-GAAP financial measures to conform the calculation of non-GAAP financial measures across all periods and provide comparability. As a result, prior year fourth quarter and fiscal year gross margin, operating income, and net income numbers have been adjusted from those previously reported.
Call Information
A conference call to discuss results for the fourth quarter and fiscal year is scheduled for today,
About
Vera Bradley, based in
In
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
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,
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 plan; 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 or other macro factors. 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
CONTACTS:
Investors:
jbentley@verabradley.com
Media:
mediacontact@verabradley.com
877-708-VERA (8372)
Condensed Consolidated Balance Sheets | |||||||
(in thousands) | |||||||
(unaudited) | |||||||
2024 | 2023 | ||||||
Assets | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 77,303 | $ | 46,595 | |||
Accounts receivable, net | 17,112 | 22,105 | |||||
Inventories | 118,278 | 142,275 | |||||
Income taxes receivable | 461 | 1,311 | |||||
Prepaid expenses and other current assets | 12,803 | 14,276 | |||||
Total current assets | 225,957 | 226,562 | |||||
Operating right-of-use assets | 66,488 | 77,954 | |||||
Property, plant, and equipment, net | 54,256 | 58,674 | |||||
Intangible assets, net | 7,573 | 15,918 | |||||
Deferred income taxes | 20,355 | 21,542 | |||||
Other assets | 6,157 | 3,851 | |||||
Total assets | $ | 380,786 | $ | 404,501 | |||
Liabilities, Redeemable Noncontrolling Interest, and Shareholders’ Equity | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 14,155 | $ | 20,350 | |||
Accrued employment costs | 12,944 | 14,312 | |||||
Short-term operating lease liabilities | 18,452 | 19,714 | |||||
Other accrued liabilities | 12,070 | 12,723 | |||||
Income taxes payable | 640 | 558 | |||||
Total current liabilities | 58,261 | 67,657 | |||||
Long-term operating lease liabilities | 62,552 | 74,664 | |||||
Other long-term liabilities | 44 | 90 | |||||
Total liabilities | 120,857 | 142,411 | |||||
Redeemable noncontrolling interest | — | 10,712 | |||||
Shareholders’ equity: | |||||||
Additional paid-in capital | 112,590 | 109,718 | |||||
Retained earnings | 282,467 | 274,629 | |||||
Accumulated other comprehensive loss | (72 | ) | (105 | ) | |||
(135,056 | ) | (132,864 | ) | ||||
Total shareholders’ equity of | 259,929 | 251,378 | |||||
Total liabilities, redeemable noncontrolling interest, and shareholders’ equity | $ | 380,786 | $ | 404,501 |
Condensed Consolidated Statements of Operations | |||||||||||||||
(in thousands, except per share data) | |||||||||||||||
(unaudited) | |||||||||||||||
Fourteen Weeks Ended | Thirteen Weeks Ended | Fifty-Three Weeks Ended | Fifty-Two Weeks Ended | ||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||
Net revenues | $ | 133,265 | $ | 147,091 | $ | 470,786 | $ | 499,961 | |||||||
Cost of sales | 63,624 | 87,054 | 214,373 | 261,017 | |||||||||||
Gross profit | 69,641 | 60,037 | 256,413 | 238,944 | |||||||||||
Selling, general, and administrative expenses | 67,183 | 70,001 | 241,457 | 265,016 | |||||||||||
Impairment of goodwill and intangible assets | 5,429 | 39,918 | 5,429 | 69,256 | |||||||||||
Other income, net | 142 | 107 | 915 | 457 | |||||||||||
Operating (loss) income | (2,829 | ) | (49,775 | ) | 10,442 | (94,871 | ) | ||||||||
Interest income (expense), net | 649 | (38 | ) | 890 | (153 | ) | |||||||||
(Loss) income before income taxes | (2,180 | ) | (49,813 | ) | 11,332 | (95,024 | ) | ||||||||
Income tax (benefit) expense | (325 | ) | (9,211 | ) | 3,494 | (15,640 | ) | ||||||||
Net (loss) income | (1,855 | ) | (40,602 | ) | 7,838 | (79,384 | ) | ||||||||
Less: Net loss attributable to redeemable noncontrolling interest | — | (12,441 | ) | — | (19,649 | ) | |||||||||
Net (loss) income attributable to | $ | (1,855 | ) | $ | (28,161 | ) | $ | 7,838 | $ | (59,735 | ) | ||||
Basic weighted-average shares outstanding | 30,825 | 30,850 | 30,833 | 31,503 | |||||||||||
Diluted weighted-average shares outstanding | 30,825 | 30,850 | 31,314 | 31,503 | |||||||||||
Basic net (loss) income per share attributable to | $ | (0.06 | ) | $ | (0.91 | ) | $ | 0.25 | $ | (1.90 | ) | ||||
Diluted net (loss) income per share attributable to | $ | (0.06 | ) | $ | (0.91 | ) | $ | 0.25 | $ | (1.90 | ) |
Condensed Consolidated Statements of Cash Flows | |||||||
(in thousands) | |||||||
(unaudited) | |||||||
Fifty-Three Weeks Ended | Fifty-Two Weeks Ended | ||||||
2024 | 2023 | ||||||
Cash flows from operating activities | |||||||
Net income (loss) | $ | 7,838 | $ | (79,384 | ) | ||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||||||
Depreciation of property, plant, and equipment | 7,968 | 8,854 | |||||
Amortization of operating right-of-use assets | 21,021 | 21,543 | |||||
5,429 | 69,256 | ||||||
Other impairment charges | — | 1,351 | |||||
Amortization of intangible assets | 2,916 | 3,303 | |||||
Provision for doubtful accounts | 322 | (77 | ) | ||||
Stock-based compensation | 2,942 | 3,241 | |||||
Deferred income taxes | 1,761 | (17,685 | ) | ||||
Other non-cash charges, net | 7 | 6 | |||||
Changes in assets and liabilities: | |||||||
Accounts receivable | 4,671 | (1,347 | ) | ||||
Inventories | 23,997 | 2,606 | |||||
Prepaid expenses and other assets | (833 | ) | 3,882 | ||||
Accounts payable | (5,989 | ) | (10,223 | ) | |||
Income taxes | 932 | 8,638 | |||||
Operating lease liabilities, net | (22,929 | ) | (25,398 | ) | |||
Accrued and other liabilities | (2,060 | ) | (1,987 | ) | |||
Net cash provided by (used in) operating activities | 47,993 | (13,421 | ) | ||||
Cash flows from investing activities | |||||||
Purchases of property, plant, and equipment | (3,770 | ) | (8,239 | ) | |||
Cash paid for business acquisition | (10,000 | ) | — | ||||
Net cash used in investing activities | (13,770 | ) | (8,239 | ) | |||
Cash flows from financing activities | |||||||
Tax withholdings for equity compensation | (1,356 | ) | (1,430 | ) | |||
Repurchase of common stock | (2,192 | ) | (18,062 | ) | |||
Distributions to redeemable noncontrolling interest | — | (613 | ) | ||||
Net cash used in financing activities | (3,548 | ) | (20,105 | ) | |||
Effect of exchange rate changes on cash and cash equivalents | 33 | (76 | ) | ||||
Net increase (decrease) in cash and cash equivalents | 30,708 | (41,841 | ) | ||||
Cash and cash equivalents, beginning of period | 46,595 | 88,436 | |||||
Cash and cash equivalents, end of period | $ | 77,303 | $ | 46,595 |
Fourth Quarter Fiscal 2024 | |||
GAAP to Non-GAAP Reconciliation Fourteen Weeks Ended | |||
(in thousands, except per share amounts) | |||
(unaudited) | |||
Fourteen Weeks Ended | |||
Net income attributable to | $ | (1,855 | ) |
Impairment of intangible asset (1) | 5,429 | ||
Amortization of definite-lived intangible assets(1) | 729 | ||
Severance(1) | 541 | ||
Consulting and professional fees(1) | 223 | ||
Income tax adjustments(2) | (1,577 | ) | |
Net income attributable to Vera Bradley - Non-GAAP | 3,490 | ||
Diluted net income per share available to | $ | 0.11 | |
(1) Recorded in Selling, general and administrative expenses | |||
(2) Related to the tax impact of the charges mentioned above |
Fourteen Weeks Ended | |||||||||||||||||||
Vera Bradley Direct | Vera Bradley Indirect | Pura Vida | Unallocated corporate expenses | Total | |||||||||||||||
Operating income (loss) | $ | 18,204 | $ | 4,402 | $ | (7,303 | ) | $ | (18,132 | ) | $ | (2,829 | ) | ||||||
Impairment of intangible assets | — | — | 5,429 | — | 5,429 | ||||||||||||||
Amortization of definite-lived intangible assets | — | — | 729 | — | 729 | ||||||||||||||
Severance charges | 232 | 309 | — | — | 541 | ||||||||||||||
Consulting and professional fees | — | — | 153 | 70 | 223 | ||||||||||||||
Operating income (loss) - Non-GAAP | $ | 18,436 | $ | 4,711 | $ | (992 | ) | $ | (18,062 | ) | $ | 4,093 |
Fourth Quarter Fiscal 2023 | |||
GAAP to Non-GAAP Reconciliation Thirteen Weeks Ended | |||
(in thousands, except per share amounts) | |||
(unaudited) | |||
Thirteen Weeks Ended | |||
Net loss attributable to | $ | (28,161 | ) |
Impairment of goodwill and intangible assets | 39,918 | ||
Severance charges(1) | 3,062 | ||
CEO sign-on bonus and relocation expenses(1) | 1,036 | ||
Amortization of definite-lived intangible assets(1) | 998 | ||
PO cancellation charges(2) | 707 | ||
Consulting fees, retention, and other(1) | 524 | ||
Income tax adjustments(3) | (8,838 | ) | |
Noncontrolling interest adjustments | (10,245 | ) | |
Net loss attributable to Vera Bradley - Non-GAAP | (999 | ) | |
Diluted net loss per share available to | $ | (0.03 | ) |
(1) Recorded in Selling, general and administrative expenses | |||
(2) Recorded in Cost of sales | |||
(3) Related to the tax impact of the charges mentioned above |
Thirteen Weeks Ended | |||||||||||||||||||
Vera Bradley Direct | Vera Bradley Indirect | Pura Vida | Unallocated corporate expenses | Total | |||||||||||||||
Operating income (loss) | $ | 18,490 | $ | 4,556 | $ | (49,760 | ) | $ | (23,061 | ) | $ | (49,775 | ) | ||||||
Impairment of goodwill and intangible assets | — | — | 39,918 | — | 39,918 | ||||||||||||||
Severance charges | — | — | — | 3,062 | 3,062 | ||||||||||||||
CEO sign-on bonus | — | — | — | 1,036 | 1,036 | ||||||||||||||
Amortization of definite-lived intangible assets | — | — | 998 | — | 998 | ||||||||||||||
PO cancellation fees | 539 | 168 | — | — | 707 | ||||||||||||||
Consulting and professional fees | — | — | 64 | 252 | 316 | ||||||||||||||
Former CEO retention and stock-based compensation | — | — | — | 208 | 208 | ||||||||||||||
Operating income (loss) - Non-GAAP | $ | 19,029 | $ | 4,724 | $ | (8,780 | ) | $ | (18,503 | ) | $ | (3,530 | ) |
GAAP to Non-GAAP Reconciliation Fifty-Three Weeks Ended | |||
(in thousands, except per share amounts) | |||
(unaudited) | |||
Fifty-Three Weeks Ended | |||
Net income attributable to | $ | 7,838 | |
Impairment of intangible asset | 5,429 | ||
Amortization of definite-lived intangible assets(1) | 2,916 | ||
Severance(1) | 2,913 | ||
Consulting and professional fees(1) | 881 | ||
Income tax adjustments(2) | (2,824 | ) | |
Net income attributable to Vera Bradley - Non-GAAP | 17,153 | ||
Diluted net income per share available to | $ | 0.55 | |
(1) Recorded in Selling, general and administrative expenses | |||
(2) Related to the tax impact of the charges mentioned above |
Fifty-Three Weeks Ended | |||||||||||||||||||
Vera Bradley Direct | Vera Bradley Indirect | Pura Vida | Unallocated corporate expenses | Total | |||||||||||||||
Operating income (loss) | $ | 61,873 | $ | 24,279 | $ | (2,321 | ) | $ | (73,389 | ) | $ | 10,442 | |||||||
Impairment of intangible assets | — | — | 5,429 | — | 5,429 | ||||||||||||||
Amortization of definite-lived intangible assets | — | — | 2,916 | — | 2,916 | ||||||||||||||
Severance charges | 574 | 309 | 79 | 1,951 | 2,913 | ||||||||||||||
Consulting and professional fees | — | — | 153 | 728 | 881 | ||||||||||||||
Operating income (loss) - Non-GAAP | $ | 62,447 | $ | 24,588 | $ | 6,256 | $ | (70,710 | ) | $ | 22,581 |
GAAP to Non-GAAP Reconciliation Fifty-Two Weeks Ended | |||
(in thousands, except per share amounts) | |||
(unaudited) | |||
Fifty-Two Weeks Ended | |||
Net loss attributable to | $ | (59,735 | ) |
69,256 | |||
Severance charges(1) | 9,182 | ||
Consulting, professional fees, and other(1) | 4,354 | ||
Amortization of definite-lived intangible assets(1) | 3,303 | ||
PO cancellation fees(2) | 1,565 | ||
Bonus, relocation, retention, and other(1) | 1,487 | ||
Store and right-of-use asset impairment charges(1) | 1,351 | ||
Income tax adjustments(3) | (15,715 | ) | |
Noncontrolling interest adjustments | (18,290 | ) | |
Net loss attributable to | (3,242 | ) | |
Diluted net loss per share available to | $ | (0.10 | ) |
(1) Recorded in Selling, general and administrative expenses | |||
(2) Recorded in Cost of sales | |||
(3) Related to the tax impact of the charges mentioned above |
Fifty-Two Weeks Ended | |||||||||||||||||||
Vera Bradley Direct | Vera Bradley Indirect | Pura Vida | Unallocated corporate expenses | Total | |||||||||||||||
Operating income (loss) | $ | 51,097 | $ | 22,965 | $ | (78,591 | ) | $ | (90,342 | ) | $ | (94,871 | ) | ||||||
— | — | 69,256 | — | 69,256 | |||||||||||||||
Severance charges | 15 | — | 422 | 8,745 | 9,182 | ||||||||||||||
Consulting and professional fees | — | — | 179 | 4,175 | 4,354 | ||||||||||||||
Amortization of definite-lived intangible assets | — | — | 3,303 | — | 3,303 | ||||||||||||||
PO cancellation fees | 1,263 | 302 | — | — | 1,565 | ||||||||||||||
CEO sign-on bonus and relocation | — | — | — | 1,036 | 1,036 | ||||||||||||||
Store impairment charges and goodMRKT brand exit costs | 839 | — | — | — | 839 | ||||||||||||||
Right of use asset impairment charge | — | — | — | 592 | 592 | ||||||||||||||
Salary retention and stock-based compensation | — | — | — | 371 | 371 | ||||||||||||||
Operating income (loss) - Non-GAAP | $ | 53,214 | $ | 23,267 | $ | (5,431 | ) | $ | (75,423 | ) | $ | (4,373 | ) |
Free Cash Flow Reconciliation | |||||||
(in thousands) | |||||||
(unaudited) | |||||||
Fifty-Three Weeks Ended | Fifty-Two Weeks Ended | ||||||
2024 | 2023 | ||||||
Net cash provided by (used in) operating activities | $ | 47,993 | $ | (13,421 | ) | ||
Purchases of property, plant, and equipment | (3,770 | ) | (8,239 | ) | |||
Free cash flow (cash usage) | $ | 44,223 | $ | (21,660 | ) |
Source:
2024 GlobeNewswire, Inc., source