Vera Bradley, Inc. (NASDAQ:VRA) Q3 2024 Results Conference Call December 6, 2023 9:30 AM ET

Company Participants

Mark Dely - Chief Administrative Officer

Jackie Ardrey - President & CEO

Michael Schwindle - CFO

Conference Call Participants

Joe Gomes - NOBLE Capital

Eric Beder - SCC Research

Operator

Good day, and welcome to the Vera Bradley Third Quarter Fiscal 2024 Earnings Conference Call. Today's conference is being recorded.

At this time, I'd like to turn the conference over to Mark Dely, Chief Administrative Officer. Please go ahead, sir.

Mark Dely

Good morning, and welcome, everyone. We'd like to thank you for joining us for today's call. Some of the statements made during our prepared remarks and response to your questions may constitute forward-looking statements made pursuant to and within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 as amended. Such forward-looking statements are subject to both known and unknown risks and uncertainties and that could cause actual results to differ materially from those that we expect.

Please refer to today's press release and the Company's most recent Form 10-K filed with the SEC for a discussion of known risks and uncertainties. Investors should not assume that the statements made during the call will remain operative at a later time. We undertake no obligation to update any information discussed on today's call.

I'll now turn the call over to Vera Bradley's CEO, Jackie Ardrey. Jackie?

Jackie Ardrey

Thank you, Mark. Good morning and thank you for joining us on today's call. Our efforts continue on Project Restoration as our associates across the Company work together to position Vera Bradley Inc. for long-term profitable growth. We are very pleased with the meaningful progress we have made so far.

Year-over-year, third quarter non-GAAP income was essentially flat as we delivered solid gross margin expansion and carefully managed our expenses despite sales challenges. Total third quarter revenues for the Vera Bradley brand decreased 5% from last year. Vera Bradley direct revenue declines primarily resulted from continued weakness in the outlet store channel and the impact of store closures. Year-over-year, Vera Bradley indirect revenues were up to last year.

Pura Vida year-over-year sales decreased 18.3% with declines in both wholesale and e-commerce revenues as prior year sales were driven by meaningfully higher levels of marketing spend along with increased liquidation and clearance activity. Store sales remain strong.

With our diligent expense management and focus on profitability, Pura Vida year-over-year third quarter operating income improved. At both brands, customers have responded to our latest iconic product collaborations and to our new innovative and on-trend product offerings even as they have been more careful with their discretionary spending in the current macro environment.