Vera Bradley, Inc. Q4 FY2026 earnings call

Ian Bickley announced he is the permanent CEO, Marty Lading is COO. Fourth quarter is first profitable in over a year. Progress on Project Sunshine pillars: sharpening brand focus by improving product and storytelling, resetting go-to-market approach, rewiring digital ecosystem, Outlet 2.0 for better retail experience, reimagining how they work. Added new leadership talent. Fourth quarter direct channel had sequential improvement, indirect channel grew, brand channels had double-digit comp growth, outlet channel had positive results. Integrated social first marketing, wholesale strategy with tiered approach and collaborations, IP partnerships focused on fewer impactful launches.

Vera Bradley direct segment revenues for the fourth quarter of fiscal 2026 totaled $74.5 million, a 2.6% decrease from $76.5 million in the prior year fourth quarter. Comparable sales declined 0.7%. Vera Bradley indirect segment revenues for the fourth quarter totaled $10.4 million, a 4.9% increase from $9.9 million in the prior year fourth quarter. Fourth quarter gross margin totaled $40.5 million, or 47.8% of net revenues, compared to $40.4 million, or 46.8% of net revenues in the prior year. SG&A expense totaled $37.3 million, or 43.9% of net revenues, compared to $47.9 million, or 55.4% of net revenues, for the prior year fourth quarter.

For FY27, sales planned between $255 and $270 million. Not holding annual outlet sale in first quarter. Expect gross profit and SG&A rate improvement, enabling operating loss improvement of 40% or better compared to adjusted operating loss of $21.7 million in FY26.

Q: When should we feel product flows and mix are where they want it to be?

A: Eric Better asked about product mix, Ian Bickley responded that 80% of spring/summer assortment was impacted, still navigating overhang of project restoration inventory, FY27 is year of business stabilization and building foundations.

Q: Where should focuses be on stores vs digital vs other pieces?

A: Ian Bickley said digital is important, leverage outlet stores for foot traffic, selectively open brand stores, focus on wholesale channel.

Q: Will open more Outlet 2.0s in 2026?

A: Ian Bickley inclined to do a few more Outlet 2.0 stores this fiscal year to refine and find best places