Vera Bradley, Inc. Q1 FY2026 earnings call

• Leadership transition: Ian Bickley assumed role of Executive Chairman until new CEO is hired; Jackie Ardrey to depart end of July; Board launched nationwide search for new CEO; formation of new Strategy and Transformation Committee with Andrew Meslow. - Strategic pillars: Focus on product, brand, customer, and channel to restore and modernize Vera Bradley; working on better balance of new and heritage product. - Product newness: Launched baby bag collection, luggage program; relaunched past customer favorites; new social-first marketing campaign launching in July. - Customer behavior: Recently acquired new customers comprise 45% of active 12-month file vs. 30% last year; different age and income profile; testing price elasticity; planning to close 10 unprofitable full-line stores.

The Vera Bradley Direct segment revenues for the first quarter of 2026 totaled $43.1 million, a 23.6% decrease from $56.4 million in the prior year first quarter. Comparable sales declined by 25% due to traffic and conversion declines in full-line and outlet stores. The Vera Bradley Indirect segment revenues for the first quarter were $8.6 million, a 25.6% decrease from $11.5 million in the prior year first quarter, primarily due to a decline in specialty and key account orders. Non-GAAP first quarter gross margin was $24.6 million or 47.5% of net revenues compared to $34.8 million or 51.3% of net revenues in the prior year. Non-GAAP SG&A expense was $38.3 million or 74.2% of net revenues compared to $44.7 million or 65.7% of net revenues in the prior year first quarter.

• The company has suspended prior year guidance due to significant uncertainties surrounding the consumer environment and recent executive and Board leadership changes; currently not providing any forward guidance.