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Vera Bradley Inc. (VRA-10.89%) has submitted its 10-K filing for the fiscal year ended February 1, 2025.
The filing details a decrease in net revenues to $371.97 million from $470.79 million in the previous year. This decline is attributed to reduced sales in both the Vera Bradley Direct and Pura Vida segments.
Cost of sales for the year was $185.13 million, representing 49.8% of net revenues, compared to 45.5% in the previous year. This increase in cost ratio is due to changes in sales channel mix and inventory adjustments.
The company reported a gross profit of $186.84 million for the year, compared to $256.41 million in the previous year, with the decline attributed to reduced sales and increased cost of sales.
Selling, general, and administrative expenses decreased to $223.81 million from $241.46 million, primarily due to reductions in employee-related expenses and advertising costs.
An impairment charge of $6.24 million was recorded for the Pura Vida brand, reflecting a full impairment of the asset.
Net loss for the year was $62.19 million, compared to a net income of $7.84 million in the previous year.
Cash used in operating activities was $14.10 million, while cash used in investing and financing activities was $10.37 million and $22.52 million, respectively.
Vera Bradley had cash and cash equivalents of $30.37 million as of February 1, 2025. The company continues to focus on its long-term strategic plan, Project Restoration, to stabilize revenues and improve profitability.
The filing also mentions the sale of Pura Vida, expected to close by the end of the first quarter of fiscal 2026, and updates to the company's credit agreement to allow for this transaction.
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. annual 10-K report dated March 28, 2025. To report an error, please email earnings@qz.com.