PROXY SUMMARY
Financial Results
In the Companys second fiscal quarter of the prior year (on July 16, 2019), Vera Bradley acquired a 75% interest in Creative Genius, Inc.,
which also operates under the name Pura Vida Bracelets (Pura Vida). Financial results for Pura Vida have been consolidated beginning July 17, 2019, the first full day following the acquisition. Figures prior to fiscal 2020 have not
been restated to reflect the purchase transaction.
The graphs below provide a snapshot of our performance in accordance with
accounting principles generally accepted in the United States (GAAP) in fiscal 2021 and the previous four fiscal years.
Net revenues
totaled $468.3 million in fiscal 2021 compared to $495.2 million in fiscal 2020. Vera Bradley, Inc. net income in accordance with GAAP was $8.7 million, or $0.26 diluted EPS, in fiscal 2021, compared to $16.0 million, or $0.47
diluted EPS, in fiscal 2020.
Fiscal 2021 items impacting comparability. During fiscal 2021, Vera Bradley, Inc. net income was negatively
impacted by $12.7 million of charges including after-tax charges of $4.8 million for amortization of definite-lived intangible assets; $4.5 million of store impairment charges; $2.1 million
of technology-related re-platforming charges (Project Novus); $1.1 million of COVID-19-related charges including
the cancellation of certain purchase orders and certain department store exit costs; and $0.2 million for an adjustment upon payment of the earn-out liability associated with the Pura Vida transaction.
These charges negatively impacted diluted EPS by approximately $0.38 in fiscal 2021. The COVID-19 pandemic significantly impacted our operating results for the year.
Fiscal 2020 items impacting comparability. During fiscal 2020, Vera Bradley, Inc. net income was negatively impacted by $12.1 million of
charges including after-tax Pura Vida purchase-related net charges of $9.7 million and after-tax charges of $2.4 million related to Project Novus,
while net revenues were positively impacted by $65.9 million of incremental revenue attributable to Pura Vida. The Pura Vida purchase-related net charges and the Project Novus charges negatively impacted diluted EPS by
approximately $0.35 in fiscal 2020. Refer to Note 16 of the Notes to the Consolidated Financial Statements set forth in Part II, Item 8 of the Companys Annual Report on Form 10-K for the fiscal
year ended February 1, 2020 for additional information.
Fiscal 2018 and fiscal 2017 items impacting comparability. Refer to Note 14 in
the Companys Annual Report on Form 10-K for the fiscal year ended February 2, 2019 regarding Vision 20/20-related charges and other charges incurred during
fiscal 2018, and other charges incurred during fiscal 2017 (January 31, 2016 through January 28, 2017).
Corporate Responsibility and our Environmental, Social and Governance Efforts
Every day, we have the privilege of inspiring and connecting women and girls through our two lifestyle brands, our amazing products, our wonderful people
and our community and global efforts. Vera Bradley and Pura Vida both nurture and promote a culture of diversity, inclusion, equality and fairness and are steadfastly focused on creating a future that is not only better but is also more sustainable
for all of our stakeholders. We want to ensure our Company continues to be a great place to work, shop and invest, and that the world around us is a better place to live.
Being a positive force in the environmental, social and governance (ESG) movement is something we are committed to, and it is an integral
part of our long-term vision of being a purpose-driven, multi-brand, high-growth company. We strive to be a leader on ESG issues that matter most to our stakeholders our customers, our associates, our shareholders and our communities.
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Vera Bradley, Inc. 2021 Proxy Statement
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