Vera Bradley Announces Strategic Cost Efficiency Initiative Providing Approximately $20 Million in Savings to Impact the Upcoming New Fiscal Year 2026

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[{"type":"text","content":"FORT WAYNE, Ind., Jan. 14, 2025 (GLOBE NEWSWIRE) -- Vera Bradley, Inc. (Nasdaq: VRA) today announced a strategic cost efficiency initiative for the upcoming fiscal year 2026. Cost Efficiency Initiative Comments Vera Bradley today announced a strategic cost efficiency initiative that is anticipated to reduce Company costs by approximately $20 million annually commencing with its fiscal year 2026. Jackie Ardrey, Chief Executive Officer commented, “A critical supporting foundation of Project Restoration has been efforts to sharpen both focus and business discipline across all areas of the company. As we prioritize resources in support of our transformation, we are streamlining business operations to restore profitability and ultimately increase shareholder value.” “The efficiency cost savings identified were a result of careful and thorough review of the entire company expense structure. The result in part will drive a significant reduction of outside vendor contracts and spending, which will help our teams focus on critical business priorities,” concluded Ardrey. Business actions supporting the $20 million efficiency savings are generally anticipated to commence early in the year and will largely result in a full year impact in the Company’s fiscal year 2026. The anticipated savings do not include any one-time costs associated with implementing the efficiency plans. The benefit of the anticipated efficiency savings is expected across most areas of the organization and will affect both selling, general, and administrative expenses, as well as gross profit. Approximately 75% of the savings are anticipated to benefit selling, general, and administrative expenses, with the balance affecting gross profit. The Company anticipates providing further fiscal year 2026 guidance information in March 2025, in conjunction with the release of the Company’s Fourth Quarter financial results. About Vera Bradley, Inc. Vera Bradley, Inc. operates two unique lifestyle brands – Vera Bradley and Pura Vida. Vera Bradley and Pura Vida are complementary businesses, both with devoted, emotionally-connected, and multi-generational female customer bases; alignment as casual, comfortable, affordable, and fun brands; positioning as “gifting” and socially-connected brands; strong, entrepreneurial cultures; a keen focus on community, charity, and social conscious...

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