Vera Bradley, Inc. (Nasdaq: VRA) (the “Company”) today announced
the planned retirement of President and Chief Executive Officer
Robert Wallstrom. Wallstrom will remain President and CEO until a
successor is named, which is expected by the beginning of 2023.
Wallstrom will work with the Board of Directors in their national
search for his successor.
Wallstrom has led Vera Bradley, Inc. as President and Chief
Executive Officer since 2013, executing the Company’s business
transformation while also championing corporate social
responsibility, associate engagement, and philanthropy initiatives.
Wallstrom oversaw the expansion of the Company’s portfolio in 2019
with the acquisition of lifestyle brand Pura Vida, which achieved B
Corp Certification in 2022. Under Wallstrom’s leadership, in 2022,
Vera Bradley, Inc. was named America’s #1 Best Midsize Employer and
#11 Best Employer for Diversity by Forbes and
Statista.
Robert Hall, Chairman of the Company’s Board of Directors,
noted, “Rob is a bold leader, an innovator, and a visionary who has
worked tirelessly to evolve the Company and position it for growth.
As an advocate for the power of business to create positive
influence and outcomes for people and communities, Rob places a
unique focus on building an organization with a strong culture that
strives to positively impact all stakeholders. I am proud to have
partnered with Rob over the last nine years, and we are grateful
for his principled and collaborative leadership.”
Hall continued, “As we search for Rob’s successor, we are in the
desirable position of having two strong, iconic brands – Vera
Bradley and Pura Vida – with loyal and dedicated customer bases, a
solid balance sheet, and a talented leadership team. The Board
takes very seriously its responsibility to find the right CEO who
will continue our focus on building consistent, sustainable growth
over the long term. The next CEO also will have to successfully
manage through this challenging economic period, including
overseeing implementation of our cost reduction initiatives which
will better position us for the future.”
Both internal and external candidates will be considered for the
CEO role.
“It has been my great privilege to serve as President and CEO of
Vera Bradley, Inc. over the last nine years, and it has been a
tremendous honor to work with our highly talented, creative, and
dedicated team of associates,” noted Wallstrom. “We have driven
innovation across both of our brands, built strong engagement with
our associates and customers, and enhanced our purpose-driven
mission. I am confident the Company will thrive in the future. I
look forward to continuing to guide the Company through this
transition period and supporting my successor as they lead the
company into the next stage of growth.”
Cost Reduction Initiatives
In conjunction with its first quarter financial results, Company
management indicated they were in the midst of a comprehensive
cost-reduction and efficiency process and expected to complete the
identification of cost reductions in the second quarter of this
fiscal year.
Management has identified annualized cost reductions totaling
approximately $25 million, which will be fully implemented in the
fiscal year ending February 3, 2024. A portion of the cost
reductions will be realized in the fiscal year ending January 28,
2023 and have been included in the Company’s previously issued
guidance.
Expense savings are derived across various areas of the Company,
including retail store efficiencies, marketing expenses,
information technology contracts, professional services, logistics
and operational costs, and corporate payroll (primarily through
attrition).
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 consciousness;
multi-channel distribution strategies; and talented leadership
teams aligned and committed to the long-term success of their
brands.
Vera Bradley, based in Fort Wayne, Indiana, is a leading
designer of women’s handbags, luggage and other travel items,
fashion and home accessories, and unique gifts. Founded in 1982 by
friends Barbara Bradley Baekgaard and Patricia R. Miller, the brand
is known for its innovative designs, iconic patterns, and brilliant
colors that inspire and connect women unlike any other brand in the
global marketplace.
In July 2019, Vera Bradley, Inc. acquired a 75% interest in
Creative Genius, Inc., which also operates under the name Pura Vida
Bracelets (“Pura Vida”). Pura Vida, based in La Jolla, California,
is a digitally native, highly-engaging lifestyle brand founded in
2010 by friends Paul Goodman and Griffin Thall. Pura Vida has a
differentiated and expanding offering of bracelets, jewelry, and
other lifestyle accessories.
The Company has three reportable segments: Vera Bradley Direct
(“VB Direct”), Vera Bradley Indirect (“VB Indirect”), and Pura
Vida. The VB Direct business consists of sales of Vera Bradley
products through Vera Bradley full-line and factory outlet stores
in the United States, verabradley.com, verabradley.ca, Vera
Bradley’s online outlet site, and the Vera Bradley annual outlet
sale in Fort Wayne, Indiana. The VB Indirect business consists of
sales of Vera Bradley products to approximately 1,800 specialty
retail locations throughout the United States, as well as select
department stores, national accounts, third party e-commerce sites,
and third-party inventory liquidators, and royalties recognized
through licensing agreements related to the Vera Bradley brand. The
Pura Vida segment consists of sales of Pura Vida products through
the Pura Vida websites, www.puravidabracelets.com,
www.puravidabracelets.eu, and www.puravidabracelets.ca, and through
the distribution of its products to wholesale retailers and
department stores.
Vera Bradley Safe Harbor Statement
Certain statements in this release are "forward-looking
statements" made pursuant to the safe-harbor provisions of the
Private Securities Litigation Reform Act of 1995. Such
forward-looking statements reflect the Company's current
expectations or beliefs concerning future events and are subject to
various risks and uncertainties that may cause actual results to
differ materially from those that we expected, including: possible
adverse changes in general economic conditions and their impact on
consumer confidence and spending; possible inability to predict and
respond in a timely manner to changes in consumer demand; possible
loss of key management or design associates or inability to attract
and retain the talent required for our business; possible inability
to maintain and enhance our brands; possible inability to
successfully implement the Company’s long-term strategic plan;
possible inability to successfully open new stores, close targeted
stores, and/or operate current stores as planned; incremental
tariffs or adverse changes in the cost of raw materials and labor
used to manufacture our products; possible adverse effects
resulting from a significant disruption in our distribution
facilities; or business disruption caused by COVID-19 or other
pandemics. Risks, uncertainties, and assumptions also include the
possibility that Pura Vida acquisition benefits may not materialize
as expected and that Pura Vida’s business may not perform as
expected. More information on potential factors that could affect
the Company’s financial results is included from time to time in
the “Risk Factors” and “Management’s Discussion and Analysis of
Financial Condition and Results of Operations” sections of the
Company’s public reports filed with the SEC, including the
Company’s Form 10-K for the fiscal year ended January 29, 2022. We
undertake no obligation to publicly update or revise any
forward-looking statement.
CONTACTS:Investors:Julia Bentley, VP of Investor Relations and
Communicationsjbentley@verabradley.com (260) 207-5116
Media:
mediacontact@verabradley.com877-708-VERA (8372)
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