Dive Brief:
- Vera Bradley CEO Jacqueline Ardrey is exiting, and the company’s board has launched a national search for her replacement, according to a Wednesday press release. Ardrey joined the handbag and accessories company in 2022, and will stay on to aid in the transition until the end of July.
- Chief Financial Officer Michael Schwindle is also leaving, effective June 30. He will be succeeded by Martin Layding, who begins Thursday, per the release. Landing was previously the divisional CFO for Tapestry-owned Coach.
- In a separate release, Vera Bradley posted a first quarter net revenue decline of about 24% to $51.7 million. Net losses surged 312% to $33 million for the period. The company said that due to the executive changes and “significant uncertainty surrounding the consumer environment,” it is suspending its forward guidance.
Dive Insight:
Vera Bradley also announced leadership changes relating to its board of directors.
Ian Bickley is taking on the newly created role of executive chairman, effective July 7. Binkley, formerly president of Coach’s international group, will serve in an interim capacity to provide guidance during the CEO transition, per the release. He will also become chairman of the company’s board of directors. Current Board Chairman Robert Hall will step down but continue to serve as a director.
Andrew Meslow, who was previously CEO of Bath & Body Works and L Brands, will become Vera Bradley’s lead independent director.
Bickley and Meslow will lead a newly established “Strategy and Transformation” committee that will work with Vera Bradley’s incoming leadership to shape strategic direction and future growth initiatives.
During her time with the company, departing CEO Ardrey launched a strategic initiative called Project Restoration, designed to help overhaul Vera Bradley’s business model and brand positioning. The company also replaced its previous CFO, John Enwright, in April 2023 and began a corporate restructuring that eliminated about 25 positions.
In its Q1 report, Vera Bradley’s direct segment posted a 24% year-over-year revenue decrease to $43.1 million. Comparable sales declined 25%, which the company attributed to traffic and conversion downturns, predominantly in full-line and outlet stores.
Vera Bradley’s indirect segment revenue fell 26% for the period to $8.6 million, mainly due to softer specialty and key account orders, per the release.
“Our first quarter results were disappointing as top line and profitability trends from the previous several quarters continued,” Ardley said in the report. “In addition to addressing consumer feedback on product styles and functionality from last summer’s relaunch, we remain committed to ‘being where she shops’ and are working on diversification of our wholesale partnerships. While there is significant work to be done on many fronts in order to return the Company’s results to a stable and positive growth story, the teams are committed to doing just that.”
In March, Vera Bradley sold Pura Vida Bracelets for an undisclosed amount. The company had originally acquired a 75% stake in the DTC jewelry brand in 2019 for more than $75 million. It took full ownership in 2023 for $10 million.
