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Feb 01

Vera Bradley Q4 2025 Earnings Report

Vera Bradley reported a significant decline in revenue and profitability as the company navigated its strategic transformation plan.

Key Takeaways

Vera Bradley posted Q4 2025 revenue of $100.0 million, down 25.0% year-over-year, driven by declines across all segments. The company reported a GAAP net loss of $47.0 million, or ($1.69) per share, with an adjusted net loss of $8.3 million, or ($0.30) per share. Comparable sales fell 17.5%, primarily due to lower traffic in outlet stores. Management remains focused on its turnaround plan, including cost-cutting and repositioning its product strategy.

Q4 revenue fell 25.0% year-over-year to $100.0 million.

Comparable sales declined 17.5% due to lower outlet store traffic.

GAAP net loss widened to $47.0 million, or ($1.69) per share.

Management continues strategic turnaround efforts, including cost reductions.

Total Revenue
$100M
Previous year: $133M
-25.0%
EPS
-$0.3
Previous year: $0.11
-372.7%
Vera Bradley Comparable Sales Growth
-17.5%
Gross Profit
$45M
Previous year: $69.6M
-35.4%
Cash and Equivalents
$30.4M
Previous year: $77.3M
-60.7%
Free Cash Flow
-$24.5M
Previous year: $48.6M
-150.3%
Total Assets
$307M
Previous year: $381M
-19.5%

Vera Bradley

Vera Bradley

Vera Bradley Revenue by Segment

Forward Guidance

Vera Bradley is focused on executing its strategic turnaround plan, including cost-cutting measures and repositioning its product strategy. Management anticipates further revenue declines in FY26 but expects profitability to improve through efficiency initiatives.

Positive Outlook

  • Projected cost savings of $20 million in FY26.
  • Increased focus on core product offerings to improve customer engagement.
  • No outstanding debt, providing financial flexibility.
  • Continued investments in digital and e-commerce channels.
  • Revised pricing and product strategy to align with customer demand.

Challenges Ahead

  • Continued revenue declines expected due to business transformation.
  • Lower traffic in outlet stores impacting sales performance.
  • Macroeconomic challenges affecting consumer spending.
  • Higher costs related to restructuring and store realignments.
  • Potential risks in successfully executing the turnaround strategy.

Revenue & Expenses

Visualization of income flow from segment revenue to net income