In This Story
Vera Bradley Inc. (VRA-2.96%) has submitted its 10-Q filing for the quarterly period ended November 2, 2024.
The filing reports a decrease in net revenues to $80.6 million for the thirteen weeks ended November 2, 2024, compared to $115.0 million in the same period the previous year. This decline is attributed to reduced traffic and sales in both the VB Direct and Pura Vida segments.
Gross profit for the quarter was $43.6 million, down from $63.0 million in the previous year. The gross margin decreased due to sales channel mix and increased outbound freight costs.
Selling, general, and administrative expenses were $54.2 million, a slight decrease from $56.4 million in the prior year. Despite the decrease in expenses, the percentage of net revenues increased, reflecting the impact of lower sales.
The company reported an operating loss of $10.5 million for the quarter, compared to an operating income of $6.8 million in the previous year. This shift is largely due to decreased revenues and increased SG&A expenses as a percentage of sales.
Net loss for the quarter was $12.8 million, compared to a net income of $5.1 million in the previous year. The effective tax rate for the quarter was (23.5)%, influenced by changes in the company's annual income projection.
Vera Bradley's cash used in operating activities was $35.8 million for the thirty-nine weeks ended November 2, 2024, compared to cash provided by operating activities of $21.1 million in the prior year. This change is primarily due to the net loss and changes in working capital.
The company has no borrowings outstanding under its $75.0 million revolving Credit Agreement as of November 2, 2024. Vera Bradley continues to focus on cost reductions and strategic initiatives to drive long-term growth.
The filing also notes the settlement of a legal proceeding related to alleged violations of California privacy laws, with no admission of liability and a non-material settlement amount.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Vera Bradley Inc. quarterly 10-Q report dated December 11, 2024. To report an error, please email earnings@qz.com.