Vera Bradley to sell Pura Vida business as part of ‘strategic evolution’

Fort Wayne-based Vera Bradley Inc. has signed an agreement to sell its Pura Vida business, the company announced in its fiscal fourth-quarter earnings report Wednesday.

CEO Jackie Ardrey said the move is part of the company’s long-term revitalization effort known as Project Restoration and allows Vera Bradley to focus more on its legacy, name-brand products.

Financial details of the sale—as well as the name of the buyer—were not disclosed, but Ardrey said the deal is expected to close at the end of the company’s fiscal first quarter.

“This sale of Pura Vida represents a significant step in our strategic evolution,” Ardrey said. “Generating brand heat and relevancy is a key focus for fiscal 2026.”

Vera Bradley acquired a 75% ownership stake in the California-based jewelry brand in 2019 for $75 million. The company then acquired the remaining 25% interest in the brand from its co-presidents, Griffin Thall and Paul Goodman, in 2023.

Vera Bradley reported a fiscal full-year net loss of $62.2 million, compared to net income of $7.8 million the previous year. Net revenue for the year also fell to $372 million.

Ardrey said the fiscal fourth quarter remained challenging as the company continues to navigate the early stages of Project Restoration, which was launched with the goal of returning the luggage, handbag, and fashion accessory designer back to profitability.

“While we experienced sequential improvement, particularly in our Vera Bradley direct channel which performed overall at expectations, we acknowledge that our transformation is taking longer than initially anticipated,” she said. “The migration of business from stores, particularly in our outlet locations, to e-commerce represented an unexpected shift, creating near-term profitability headwinds that we are actively addressing with targeted strategies.”

Despite the continued challenges, Vera Bradley said the company is in strong financial condition as it enters its new fiscal year with no debt and $30 million in cash.

Ardrey added that the company is on track to deliver a minimum of $20 million in cost savings this year, which was the goal of the strategic cost efficiency initiative announced earlier this year.

She described the new year as one of stabilization for Vera Bradley.

“Vera Bradley is on a journey to long-term health, and the steps we are taking today are critical to our successful path forward,” she said. “This year, we will focus on stabilizing our customer file and beginning to grow from a healthier place with marketing spend diversification and optimization serving as critical inputs to our success.”

Shares of Vera Bradley stock were down 3.1% to $2.63 per share at close of trading Wednesday.

Additionally, Vera Bradley announced that co-founder Barbara Bradley Baekgaard will be stepping down from the company’s board of directors, and her seat will not be filled.

Baekgaard, along with Pat Miller, founded the company in 1982 and served as co-president until 2010. Miller held the same role during that time and retired from the board in 2019.

Vera Bradley is the 34th-largest public company in Indiana with $470.8 million in revenue, according to IBJ research. The company employs more than 2,100 people.