Vera Bradley, Inc. announced its financial results for the first quarter of fiscal year 2026, ended May 3, 2025, reporting consolidated net revenues from continuing operations of $51.7 million, a 24.0% decrease from $67.9 million in the prior year. The company posted a net loss from continuing operations of ($18.3) million, or ($0.66) per diluted share, significantly wider than the ($7.6) million, or ($0.25) per diluted share, in the prior year.
The VB Direct segment revenues decreased by 23.6% to $43.1 million, with comparable sales declining 25.0% across full-line and outlet stores. The VB Indirect segment revenues also decreased by 25.6% to $8.6 million. Gross profit contracted to 44.1% of net revenues from 50.1% in the prior year, primarily due to channel shifts to lower-margin online sites and increased shipping costs.
Selling, General, and Administrative (SG&A) expenses, despite decreasing in dollar terms, increased to 79.0% of net revenues from 66.4% in the prior year, indicating substantial operating deleverage. The operating loss from continuing operations widened to ($17.9) million, or (34.6%) of net revenues, compared to ($10.6) million, or (15.6%) of net revenues, in the prior year.
In a major leadership shake-up, CEO Jacqueline Ardrey is departing the company, with Ian Bickley assuming the role of Executive Chairman effective July 7, 2025, and taking an interim executive role during the CEO search. Current Board Chairman Robert Hall is stepping down from his chairman role but will remain a Director. Additionally, Martin Layding is joining as Chief Financial Officer, effective June 12, 2025, replacing Michael Schwindle, who is also departing.
A new Board Strategy and Transformation Committee has been established, co-led by Ian Bickley and Andrew Meslow, to refine strategy and accelerate operational transformation. Given these executive and Board changes, coupled with significant uncertainty in the consumer environment, the company has suspended its forward guidance, allowing the new team time to provide input on future strategic and financial expectations.
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