Vera Bradley's Margins Took A Bigger Hit Than Its Iconic Totes

Vera Bradley, Inc. (NASDAQ:VRA) stock fell Thursday after the retailer’s turnaround momentum was eclipsed by a steep margin collapse and deeper operating losses, signaling that its refreshed lineup and relaunch of iconic bags have yet to reignite demand across key channels.

The company posted an adjusted third-quarter loss of 30 cents per share, wider than the Street’s expected 11-cent loss.

Quarterly sales of $62.253 million beat the Street view of $61.686 million.

Also Read: House Passes $900 Billion Defense Bill With Pay Hikes, Troop Mandates, And DEI Cuts

“Our third quarter results demonstrate progress in our comprehensive transformation strategy, which we have now branded as Project Sunshine, our five-pillar initiative anchored on reclaiming Vera Bradley’s joyful optimism while fueling operational excellence,” said Ian Bickley, executive chairman of Vera Bradley. 

Segment Performance

Vera Bradley Direct segment revenues totaled $49.7 million, a 5.3% decrease from $52.5 million in the prior year third quarter. Comparable sales declined 5.8%, primarily driven by traffic and conversion declines in outlet channels.

Indirect segment revenues totaled $12.6 million, a 30.2% decrease from $18.0 million in the prior-year quarter. The decrease was primarily related to a decline in specialty and key account orders.

Margins, Profitability, and Cash Position

Gross profit totaled $26.2 million, or 42.1% of net revenues, compared to $38.4 million, or 54.5% of net revenues, in the prior year.

On a non-GAAP basis, current year gross profit totaled $26.0 million, or 41.7% of net revenues. 

The company’s current year adjusted operating loss from continuing operations totaled ($11.1) million, compared to ($5.0) million in the prior year.

Cash and cash equivalents as of November 1, 2025, totaled $10.7 million compared to $12.3 million at the end of last year’s third quarter. 

Iconic Style Relaunches

“The successful return of iconic styles like the Original 100 Bag, the Vera and Glenna Totes also give us confidence we’re moving Vera Bradley in the right direction. While significant work remains, these early wins and our continued focus on profitability and cash generation position us well for sustainable growth,” concluded Bickley.

VRA Price Action: Vera Bradley shares were down 20.47% at $1.71 at the time of publication on Thursday. The stock is trading near its 52-week low of $1.71, according to Benzinga Pro data.

READ NEXT:

• Boeing Says Trump’s Equity Plan Does Not Apply To Big US Defense Firms: Report

Photo by Mahmoud Suhail via Shutterstock