Vera Bradley reports Q3 EPS (27c) vs. 19c last year

Reports Q3 revenue $80.6M vs. $115M last year. Jackie Ardrey, CEO commented, “The third quarter was extremely challenging as we remained in the early stages of ‘Project Restoration’, our strategic initiative to transform our business model and transition Vera Bradley’s (VRA) brand positioning. With the current consumer mindset focused on value, we have more work ahead of us on our repositioning journey. Importantly, we’ve made meaningful adjustments to our assortment and value proposition in response to results and customer feedback. I’m pleased to report that we are seeing steady progress with several green shoots that have continued in the fourth quarter to date.With the launch of our Holiday assortments late in the third quarter, and the strategic promotional adjustments we executed, we are experiencing a steady trendline improvement across the majority of our Vera Bradley direct-to-consumer channels in Q4, as well as in our wholesale channel. We are seeing strong customer response to heritage prints, key giftable price point products and continued success in our elevated product offerings. We also experienced a marked improvement in our brand awareness and equity scores, and we continued to broaden our reach with younger and higher income household consumers. We enter the fourth quarter with no debt and $13.7 million in cash, and are prudently managing the business through a conservative lens. With our brand restoration efforts well under way, we remain agile and flexible for the remaining Holiday season, continuing to drive strong business discipline, and pursuing our vision to inspire people to be bold in their pursuits and brilliant in their self-expression,” Ardrey continued. “While this is a transformational period, we remain confident that Project Restoration is the right path forward for the long-term health and positioning of Vera Bradley. The combination of the trendline business improvement, the upward trajectory in brand scores, our broadening consumer reach, and the new inbound interest generated for brand-right collaborations, validates our strategic direction. We remain dedicated to returning the company to long-term profitable growth and creating value for our shareholders.”