Vera Bradley, Inc. announced its financial results for the third quarter ended November 2, 2024, reporting consolidated net revenues of $80.6 million, a 30% decrease from $115.0 million in the prior year's third quarter. The company posted a consolidated net loss of ($12.8) million, or ($0.46) per diluted share, compared to a net income of $5.1 million, or $0.16 per diluted share, in the prior year.
The VB Direct segment revenues decreased by 27.4% to $52.5 million, with comparable sales declining 27.2% across all direct channels. The VB Indirect segment revenues fell 27.9% to $18.0 million, and the Pura Vida segment revenues decreased by 42.9% to $10.1 million, driven by declines in both e-commerce and wholesale sales.
Consolidated gross profit was $43.6 million, or 54.1% of net revenues, down from 54.8% in the prior year, impacted by sales channel mix and increased outbound freight costs. Selling, General, and Administrative (SG&A) expenses, while lower in dollar terms, increased to 67.3% of net revenues from 49.0% in the prior year, indicating significant operating deleverage.
The company reported a consolidated operating loss of ($10.5) million, or (13.0%) of net revenues, a significant shift from an operating income of $6.8 million, or 5.9% of net revenues, in the prior year. Cash and cash equivalents stood at $13.7 million, down from $52.3 million at the end of the prior year's third quarter, though the company had no borrowings on its $75 million asset-based lending facility.
CEO Jackie Ardrey described the quarter as 'extremely challenging' due to the early stages of 'Project Restoration' and a consumer mindset focused on value. However, she noted 'steady progress with several green shoots' in the fourth quarter, including improved brand awareness and broader consumer reach, and announced a new $30 million share repurchase authorization to commence after the current program expires in December 2024.
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