Vera Bradley, Inc. reported a net loss of $12.4 million, or $0.44 per diluted share, for its third quarter of fiscal 2026, which ended November 1 2025. Net revenues fell 11.2% to $62.3 million from $70.5 million a year earlier, a decline that narrowly missed the consensus estimate of $62.30 million.
The company’s Direct channel generated $49.7 million, a 5.3% decline, while the Indirect channel revenue dropped 30.2% to $12.6 million from $18.0 million in the prior year. The sharper decline in the Indirect segment reflects a loss of key‑account and specialty orders, a trend that management attributes to a shift in consumer preferences and intensified competition in wholesale channels.
Gross profit for the quarter was $26.2 million, or 42.1% of net revenues, down from 54.5% a year earlier. A $5.9 million inventory write‑down tied to the company’s shift toward cotton and heritage prints and a $4 million write‑off of television media credits reduced earnings. On a non‑GAAP basis, the loss was $8.3 million, or $0.30 per diluted share, still well below the consensus estimate of $-0.11. Selling, general and administrative expenses were $38.7 million, or 62.1% of revenue, slightly lower as a percentage of sales than the prior year.
Interim CEO Ian Bickley said the company is “making progress on our transformation plan, Project Sunshine,” noting that sequential improvements in revenue decline rates and positive comparable sales in brand channels have been sustained for five months. CFO Martin Layding added that the inventory write‑down and media credit write‑off were one‑time charges that do not reflect ongoing operational performance. The company is actively pursuing a new CEO and continues to focus on cost discipline and brand rejuvenation.
Investors reacted negatively to the earnings, citing the wider‑than‑expected loss per share and the significant one‑time charges. The market’s response underscores concerns about the company’s ability to reverse revenue decline and achieve profitability while executing its transformation strategy.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.