The chart below shows how VRA performed 10 days before and after its earnings report, based on data from the past quarters. Typically, VRA sees a +6.94% change in stock price 10 days leading up to the earnings, and a -2.04% change 10 days following the report. On the earnings day itself, the stock moves by -1.11%. This data can give you a slight idea of what to expect for the next quarter's release.
Positive
Gross Margin Expansion: Vera Bradley's gross margin expanded 80 basis points in Q3 from reduced liquidation and clearance mix.
Steady Progress Indicators: We are seeing steady progress with several green shoots late in the third quarter, which have continued into the fourth quarter to date.
Promotional Strategy Improvement: We have modestly adjusted our promotional strategy to deliver an improved value proposition and are seeing better results.
Strong Customer Demand: We are experiencing strong customer response to heritage prints, key giftable price point products and continued success in elevated price point offerings like leather.
Customer Acquisition Success: We are seeing strong customer acquisition efforts showing promising results.
Negative
Revenue Decline Analysis: Consolidated revenues totaled $80.6 million compared to $115 million in the prior year third quarter, indicating a significant decline.
Net Loss Comparison: Our net loss for the third quarter totaled $7.5 million or $0.27 per diluted share compared to a net income of $6.1 million last year or $0.19 per diluted share.
Direct Segment Revenue Decline: Vera Bradley Direct segment revenues for the current year third quarter totaled $52.5 million, a 27% decrease from $72.3 million in the prior year third quarter.
Store Closures Impact Sales: Total revenues year-over-year were also impacted by five store closures, contributing to a decline in sales.
Sales Decline Forecast: Vera Bradley's overall sales year-to-go are expected to decline in the mid-teen range, indicating ongoing challenges.
Vera Bradley, Inc. (VRA) Q3 2025 Earnings Call Transcript
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