What changed in this filing

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Item 1. Business

2025-03-28 compared with 2024-03-29 · 79 added, 109 removed, 343 unchanged (35% of the section changed)

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On January 30, 2023, the Company acquired the remaining 25% interest in Pura Vida.

On March 11, 2025 the Company entered into an Interest Purchase Agreement (the “Agreement”) to sell 100% of Pura Vida.

The transaction is expected to close by the end of the first quarter.

A copy of the Agreement is included as an exhibit to this Form 10-K.

See Note 18 of the Notes to Consolidated Financial Statements.

The Company has three reportable segments:

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e-commerce sites (verabradley.com, outlet.verabradley.com, and international.verabradley.com);

and typically the Vera Bradley annual outlet sale in Fort Wayne, Indiana.

and the Vera Bradley annual outlet sale in Fort Wayne, Indiana.

As of February 1, 2025, the Company operated 39 full-line stores and 87 outlet stores.

The annual outlet sale was cancelled in 2021 and 2022 as a result of the COVID-19 pandemic but resumed in calendar 2023.

VB Indirect .

The VB Indirect business consists of sales of Vera Bradley products to approximately 1,600 sp ecialty retail locations, substantially all of which are located in the United States;

The VB Indirect business consists of sales of Vera Bradley products to approximately 1,200 specialty retail locations, substantially all of which are located in the United States;

sales to department stores, national accounts, third-party e-commerce sites, and third-party inventory liquidators;

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Pura Vida, based in La Jolla, California, is a digitally native lifestyle brand with a differentiated and expanding offering of bracelets, jewelry, apparel, and other lifestyle accessories.

The Pura Vida segment represents revenues generated through the Pura Vida websites (www.puravidabracelets.com, www.puravidabracelets.eu, and www.puravidabracelets.ca);

The Pura Vida segment represents revenues generated through the Pura Vida website (www.puravidabracelets.com);

through the distribution of Pura Vida-branded products to wholesale retailers and department stores, substantially all of which are located in the United States;

and through its five retail stores.

and through its seven retail stores.

When they were traveling together in 1982, Fort Wayne, Indiana friends Barbara Bradley Baekgaard and Patricia Miller realized there was a lack of stylish travel accessories in the market.

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The passion for design and customer service established by our founders has driven our Company for over 40 years and remains the cornerstone of Vera Bradley, Inc.

Baekgaard retired from Vera Bradley operations in 2017 but continues to serve

on the Board of Directors and as a brand ambassador.

Baekgaard retired from Vera Bradley operations in 2017 and retired from the Board of Directors in March 2025 but continues to serve in a Director Emeritus role and as a brand ambassador.

Miller retired as our National Spokesperson in October 2012 and from the Board of Directors in August 2019.

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During fiscal 2025, we made significant progress on this Company-wide, comprehensive initiative, focusing on the four key pillars of the business for each brand.

At Vera Bradley, we will launch the first manifestation of our Project Restoration in July 2024 which we believe will be a significant pivot from where we are today.

It includes, among other things, the reveal of our new and elevated full-line branding and marketing, product, store design, and website.

At Vera Bradle y, we launched the first manifestation of our Project Restoration in July fiscal 2025.

It included, among other things, the reveal of our new and elevated full-line branding and marketing, product, store design, and website.

Our work on this initiative was informed by consumer research and current perceptions of the brand from both buyers and non-buyers.

We believe we have the ability to attract new customers while keeping our current customers through product innovations and new marketing campaigns designed to inspire joy and connection.

Our new assortment has broad appeal and uses new, higher quality, and softer fabrics and styles designed to not only look great, but feel great.

We remain confident in our strategic direction and continue to make refinements based on selling data and customer feedback we have received since Project Restoration launch.

We will be expanding our heritage products, reducing our assortment in higher price points, as well as bringing back regular deliveries of licensed product and some classic styles our customers are asking for.

We are focusing on restoring brand relevancy, targeting casual and feminine 35 to 54 year old women who value both fashion and function.

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We are continually looking for new ways to creatively engage our customers, grow brand awareness, and introduce new customers to our brands in a cost-effective manner.

Vera Bradley continues to rank among the top of the industry for our Net Promoter and Customer Satisfaction Scores.

We are refocusing on core categories and items we are “best at,” such as travel and bags, by innovating and expanding within our core products.

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We are building a balanced footprint that more clearly differentiates full-line and outlet assortments.

We expect to open two full-line stores and one outlet store this year, relocate stores where needed, and update our full-line stores with new branding and an improved shopping experience in conjunction with our first phase of Project Restoration.

We are also exploring opening new full-line formats with a focus on lifestyle centers.

Maintaining brand-right wholesale relationships is important, and we are actively working with new specialty retailers where we know our customer is shopping.

We will also accelerate our digital-first focus.

We are improving our online shopping experience and elevating full-line creative and experiences, while offering our outlet assortment online at outlet.verabradley.com for the first time ever.

At Pura Vida, we are shifting our focus to delivering profitability and balancing the ecommerce business with wholesale and retail stores.

We are diversifying our marketing spend and are making additional efforts to retain customers while continuing to work on each pillar of Project Restoration.

We are sharpening our focus on the 18-24 year old girl, who both those younger and older aspire to be.

Our target customer is free-spirited, a trendsetter, and focused on “living her best life.” Pura Vida jewelry is a way of expressing herself and fits her personality.

We have refreshed our brand image with a focus on showing what “living free” looks and feels like – showing real places, real moments, and real faces that are authentic, diverse, and inclusive.

We are recentering our brand ethos on “living life to the fullest” and sharpening our focus on Gen Z.

Pura Vida remains one of the most highly-engaged brands in the accessories space, surpassing 2.2 million followers on Instagram and is consistently listed as one of the most engaged jewelry brands on Instagram.

Pura Vida was named to the 2024 Forbes Customer Experience All Stars List, ranked by consumers to be in the top 6% of over 3,000 brands for its products, services, and treatment of customers.

We are focusing on delivering unique, fun, playful product designs that are affordable and accessible.

We will continue to innovate in our hero core category of string bracelets as well as other jewelry items, and we will opportunistically explore additional close-in, adjacent categories that make sense for our business and our customers.

We are continuing to look for opportunities to improve the profitability of our full-line store portfolio by re-balancing our existing fleet

through select closures along with identifying future market opportunities.

We will continue to focus on our highest-potential stores by enhancing the customer experience.

We expect to open two full-line stores in fiscal 2026.

Maintaining brand-right wholesale relationships is important, and we are actively working to acquire new specialty and key account retailers where we know our customer is shopping.

We have improved our online shopping experience through elevating full-line creative and experiences, while offering our outlet assortment online at outlet.verabradley.com.

Pura Vida has shifted focus to delivering profitability and balancing the ecommerce business with wholesale and retail stores.

Pura Vida diversified marketing spend and made additional efforts to retain customers.

Pura Vida has sharpened focus on the 18-24 year old, who both those younger and older aspire to be.

Pura Vida's target customer is free-spirited, a trendsetter, and in the midst of discovering who she is and where she is heading.

Pura Vida has refreshed the brand image with a focus on being more relevant to Gen Z through showing real places, real moments, and real faces that are authentic, diverse, and inclusive.

Pura Vida remains one of the most highly-engaged brands in the accessories space, with nearly 2.2 million followers on Instagram and is consistently listed as one of the most engaged jewelry brands on Instagram.

Pura Vida has focused on delivering unique, fun, playful product designs that are affordable and accessible.

Pura Vida has innovated in the hero core category of string bracelets as well as other jewelry items.

Approximately a third of the total Pura Vida business is comprised of jewelry categories other than bracelets, such as rings, anklets, and necklaces.

We continue to have a strong focus on restoring e-commerce growth and prudent growth of wholesale by pursuing larger, more strategic partnerships and expanding larger existing accounts.

We expect to open two additional stores this year.

Our four full-line Pura Vida stores are playing a role in driving new customer acquisition as we continue to diversify our marketing platforms, and they demonstrate the power a retail presence can have in driving digital sales, omni-channel loyalty, and spending.

Pura Vida has had a strong focus on restoring e-commerce to a healthy full price customer and prudent sharper management of wholesale.

The six full-line Pura Vida stores have played a role in driving new customer acquisition and they demonstrate the power a retail presence can have in driving digital sales, omni-channel loyalty, and spending.

Our Product Release Strategy

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On average, we typically introduce new collections monthly.

Each launch typically consists of one to three signature cotton-quilted prints, as well as other fabrications including Performance Twill, Re-Active, microfiber, and nylon, some of which are also available in solid colors.

Each launch typically consists of one to three signature cotton-quilted prints, as well as other fabrications including Featherweight, Leather, Performance Twill, Re-Active, microfiber, and nylon, some of which are also available in solid colors.

These collections of prints and solids are incorporated into the designs of a wide range of products, including bags, accessories, and travel items.

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We sell our remaining inventory of retired products primarily through our websites (including our online outlet site), outlet stores, our annual outlet sale, and third-party liquidators.

We introduce new Pura Vida products seasonally, approximately three times a year (spring, summer, and fall).

We release curated product assortments multiple times per season that each embody a trend that we believe resonates with our customer base.

Each product launch collection typically consists of 20 to 30 customer choices.

We offer a mix of seasonally inspired designs and next generation designs of core bestsellers.

New Pura Vida products are released monthly.

Each product launch collection typically consists of 10 to 30 customer choices, offering a mix of seasonally inspired designs and next generation designs of core bestsellers.

The following chart presents net revenues generated by each of the Company’s product categories and other revenues as a percentage of our total net revenues for fiscal years 2025, 2024, and 2023.

Fiscal Year Ended

2024 January 28,

2025 February 3,

2024 January 28,

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and outdoor furniture, accessories, and décor.

We also have licensing agreements with NFL, Disney Consumer Products, Peanuts Worldwide, Sanrio Inc.

(Hello Kitty), Crocs, Tupperware, Tervis (drinkware), NCAA (collegiate), and certain U.S.

Military forces.

We also have licensing agreements with NFL, Disney Consumer Products, Peanuts Worldwide, NBC Universal, Warner Brothers, and NCAA (collegiate).

We will continue to look for the right strategic partners and licensees that can augment the brand and provide established distribution networks for certain categories of business.

Additional arrangements will be launched in fiscal 2026.

Pura Vida continues to develop new styles and re-invent existing styles.

We have a cross-functional team that aligns product development with merchandising to strategically manage the design process.

Our cross-functional team attends trade shows and performs market research to develop what we believe will be on-trend products that communicate and emulate the “pura vida” lifestyle.

We also pursue brand extensions through licensing agreements and we have partnered with Discovery, Warner Brothers Consumer Products, Disney Consumer Products, Sanrio Inc.

(Hello Kitty), and other companies that are consistent with our brand.

Pura Vida continued to develop new styles and re-invent existing styles.

Pura Vida has pursued brand extensions through licensing agreements and partnerships with Discovery, Warner Brothers Consumer Products, Disney Consumer Products, and Sanrio Inc.

(Hello Kitty).

Pura Vida has also engaged in collaboration with other relevant brands like Kulani Kinis, and Dutch Brothers Coffee Company to create limited edition products.

We believe that the growth of our brands and our business is influenced by our ability to introduce and sell our merchandise in a way that clearly conveys the Vera Bradley and Pura Vida brand personalities.

We use marketing as a critical tool in our efforts to promote our brands.

We are continually focused on looking for new ways to creatively engage and retain our customers, grow brand awareness, and introduce new customers to our brands in a cost-effective manner, but that is becoming more challenging and expensive for both of our brands due in part to rising digital media costs.

We are continually focused on looking for new ways to creatively engage and retain our customers, grow brand awareness, and introduce new customers to our brands in a cost-effective manner.

Vera Bradley’s marketing platform will continue to be a blend of digital and more traditional channels, such as direct mail, email, quality media placements, PR, and targeted TV ads.

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The goal of our 360-brand marketing program is to drive brand awareness and desirability, as well as connect with consumers where they are.

We will continue to drive social media engagement by employing more user-generated content, growing our influencer and ambassador programs, further enhancing social storytelling and social selling, expanding Facebook Live and Reels, and growing TikTok engagement.

Retention Advertising.

We communicate with our established customers consistently throughout the year with regular e-mails, social media, and notifications, as well as seasonal direct mail related to the Vera Bradley brand.

Our retention advertising is geared to keeping Vera Bradley top of mind with our customers, rewarding our customers, and providing them with news of our seasonal launches, new product introductions, and VB Cares initiatives.

We communicate with our established customers consistently throughout the year with regular e-mails, social media, and SMS, as well as seasonal direct mail related to the Vera Bradley brand.

New Customer Acquisition Advertising.

We primarily employ digital (i.e., display banner, mobile, geo-targeting, and pre-roll video) advertising to increase overall brand awareness and attract new customers.

We primarily employ digital (i.e., paid social media, paid search, affiliate) and direct mail (catalog, postcards) advertising to increase overall brand awareness and attract new customers.

Public Relations and Product Placement.

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In addition, we have expanded our public relations efforts to reach popular online influencers and content creators.

Product placement of Vera Bradley products in feature-length films and on prime-time television shows remains strong with television placements in All American, B Positive, Bob Hearts Abishola, Call Me Kat, Grownish, Elsbeth, The Neighborhood, Night Court, With Love, Lopez vs.

Lopez, Last Man Standing, Mom, and Curb Your Enthusiasm .

Movie placements include:

A Man Named Otto, No Hard Feelings, My Big Fat Greek Wedding 3, and Puppy Love.

Partnerships.

During fiscal 2024, under the umbrella of VB Cares, we reinforced our position as a socially-conscious organization and continued to strengthen our community support and charitable initiatives that are meaningful to our customers

and that make a significant impact on those in need, particularly women and children.

Efforts included supporting the Vera Bradley Foundation for Breast Cancer, Blessings in a Backpack, New Hope Girls, Free Mom Hugs, One Atta Time, American Heart Association, Boys and Girls Club, Big Brothers Big Sisters, among others.

During fiscal 2025, we reinforced our position as a company empowering women by aligning our efforts to support the Vera Bradley Breast Cancer Foundation.

Social Media and Online Marketing.

We use online marketing and social networking sites as tools to increase brand awareness and drive traffic to verabradley.com and to our Vera Bradley stores.

Vera Bradley can be found on Facebook, Instagram, TikTok, Twitter, Pinterest, and YouTube.

For Vera Bradley, we have captured approximately 7.8 million active customer e-mail addresses in our online customer file, with many of these customers providing age, occupation, and location data.

We use online marketing and social networking sites as tools to increase brand awareness and drive traffic to our e-commerce sites (verabradley.com, outlet.verabradley.com, and international.verabradley.com) and to our Vera Bradley stores.

Vera Bradley can be found on Facebook, Instagram, TikTok, X, Pinterest, and YouTube.

For Vera Bradley, we have captured approximately 3.3 million active subscribed customer e-mail addresses in our online customer file, with many of these customers providing age, occupation, and location data.

This information provides us with deeper insight into the products and categories that are of the highest interest to our customers and allows us to better target our customers with appropriate messages.

As of February 3, 2024, we had approximately 2.0 million Facebook fans, approximately 70,000 Twitter ("X") followers, and approximately 45,000 TikTok followers.

Our Instagram has grown to nearly 600,000 followers and is our most highly engaged social medium.

In addition, we often partner with brand-right bloggers to promote our products.

As of February 1, 2025, we had approximately 2.0 million Facebook followers, nearly 70,000 Twitter ("X") followers, and approximately 55,000 TikTok followers.

Our Instagram has grown to approximately 612,000 followers and is our most highly engaged social medium.

In addition, we often partner with brand-right influencers to promote our products.

Mall Advertising .

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Retention Advertising.

We connect with our established customers with regular emails, affiliate marketing, SMS marketing, and social media marketing.

Our retention advertising focuses on informing Pura Vida customers of new product launches, exclusive offers, inventory restocks of best sellers, promoting referral and loyalty rewards, and the latest Pura Vida news.

Pura Vida has connected with established customers through regular emails, affiliate marketing, SMS marketing, and social media marketing.

Pura Vida's retention advertising focuses on informing customers of new product launches, exclusive offers, inventory restocks of best sellers, promoting referral and loyalty rewards, and the latest Pura Vida news.

New Customer Acquisition Advertising.

Pura Vida focuses on digital advertising through Facebook, Instagram, TikTok, Google, Snapchat, and Pinterest to acquire new customers.

We are consistently testing new audiences, channels, creative ads, and promotions to maximize our return on paid media spend.

Pura Vida has focused on digital advertising through Facebook, Instagram, TikTok, Google, Snapchat, and Pinterest to acquire new customers.

Pura Vida has consistently tested new audiences, channels, creative ads, and promotions to maximize our return on paid media spend.

Ambassador Program .

We have a grassroots program of brand ambassadors who drive customers to our website and generate buzz in local communities, digitally through their social media channels, in person through events, and through word of mouth.

We acquire these brand ambassadors through advertising on Instagram and Tiktok, as well as via outreach on our organic and retention channels.

Pura Vida has a grassroots program of brand ambassadors who drive customers to the website and generate buzz in local communities, digitally through their social media channels, in person through events, and through word of mouth.

PR & Influencer Marketing .

We work to tell the Pura Vida brand story through media and editorial placements, seeding with celebrities and relevant publications, and working with brand influencers across various key markets and demographic profiles.

Our work with influencers includes collaborations on product and marketing campaigns that drives brand awareness with their audiences and our target demographic.

We have also built a network of micro influencers and content creators who post for our brand in exchange for product and exposure on our social channels.

The Pura Vida brand story is told through media and editorial placements, seeding with celebrities and relevant publications, and working with brand influencers across various key markets and demographic profiles.

Pura Vida has also built a network of micro influencers and content creators who post for our brand in exchange for product and exposure on our social channels.

Charity Collaborations .

W e actively partner with charities to donate to causes that are important to our customers.

To date, we have donated nearly $6.0 million to various ch arities around the world.

Pura Vida has partnered with charities to donate to causes that are important to our customers.

To date, Pura Vida has donated nearly $6.5 million to various charities around the world.

Experiential Marketing .

To reach both existing and new customers and bring the Pura Vida brand to life, we have hosted events at our retail stores, in-person brand activations on college campuses and relevant public events, and built a brand presence at partner-owned events such as the World Surf League.

To create excitement and engagement, in the summer of fiscal 2024, we launched our “Live Free” and “College Mobile tours.

“Live Free" made stops all over the U.S., including the Hamptons, NY;

Jackson, WY, and Juneau, AK.

In conjunction with back-to-campus, our “College Mobile” Vera Bradley bus tour traveled to various college campuses across the country.

To reach both existing and new customers and bring the brand to life, Pura Vida has hosted events at our retail stores, in-person brand activations on college campuses and relevant public events, and built a brand presence at partner-owned events such as the Varsity Cheer League.

Because Vera Bradley and Pura Vida products are frequently given as gifts, we have historically realized, and expect to continue to realize, higher sales and operating income in the fourth quarter of our fiscal year, which includes the holiday months of November and December.

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Consequently, an essential requirement for the success of our stores is our ability to attract, train, and retain talented, highly motivated district managers, store managers, and sales associates.

We sell our products through the verabradley.com, outlet.verabradley.com and international.verabradley.com websites.

We sell our products through the the Vera Bradley websites (verabradley.com, international.verabradley.com, and outlet.verabradley.com) as well as direct to consumer marketplaces.

The objective of these websites is to provide both a mechanism for marketing directly to consumers and a storefront where consumers can find the entire full-line Vera Bradley collection.

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Annual Outlet Sale.

For calendar years 2021 and 2022, our annual outlet sale was cancelled as a result of the COVID-19 pandemic.

In June 2023, the annual outlet sale resumed.

Our annual outlet sale is typically held in the Allen County War Memorial Coliseum Exposition Center in Fort Wayne, Indiana.

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As of February 1, 2025, we sold our products in approximately 1,200 specialty retail locations, as well as department stores, national accounts, third-party e-commerce sites, and third-party inventory liquidators, as well as through licensing agreements.

We currently sell our products in approximately 300 department store locations as well as Amazon.com and other marketplaces.

We currently sell our products in approximately 250 department store locations as well as Amazon.com and other third party marketplaces.

The top 25% of our specialty retailers account for approximately 84% of total specialty retailer revenue.

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We believe that having a combination of an in-house field sales force and a third-party agency, covering certain geographies, results in a more consistent brand presentation and messaging, enhanced support for our Indirect customers, and a more predictable, scalable, and cost-efficient business model.

As of February 3, 2024, our in-house sales team consisted of approximate ly 20 full-time sales consultants.

In addition to acquiring new and growing existing accounts, our sales consultants serve as a support center for our Indirect customers by assisting and educating them in areas such as merchandising and visual presentation, marketing the brand, product selection, and inventory management.

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Pura Vida Segment

Pura Vida products are available on our websites, www.puravidabracelets.com, www.puravidabracelets.eu, and www.puravidabracelets.ca.

Pura Vida products are available on our website, www.puravidabracelets.com.

Pura Vida’s website immerses visitors in the brand, its products, and its social mission.

Pura Vida is a digitally native brand, and the e-commerce storefront continues to be the primary source of revenues for the Pura Vida business.

The e-commerce site also includes a monthly bracelet and jewelry subscription club.

The subscription club is a mechanism to continue to build brand loyalty and stimulate higher retention.

The Pura Vida wholesale channel is comprised primarily of specialty stores including Tilly’s, The Paper Store, Ron Jon Surf Shops, and Hallmark stores, among others.

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We have a combination of in-house and external sales personnel who work with our wholesale retailers regarding order fulfillment and compilation.

Pura Vida has five retail store locations.

Four of the locations opened in fiscal 2023 and one location opened in fiscal 2022.

Pura Vida has seven retail store locations.

Two of the locations opened in fiscal 2025, four opened in fiscal 2023, and one location opened in fiscal 2022.

Our full-line locations are allowing us to showcase the Pura Vida lifestyle with a full array of existing products and new product innovations.

Manufacturing and Supply Chain Model

During fiscal 2024, we continued to be impacted by higher tariffs from previously duty-free countries, where we source products, as a result of the Generalized System of Preferences (“GSP”) duty-free status expiring at the end of calendar year 2020.

We cannot guarantee if or when the GSP duty-free status will be reinstated or if it will be retro-actively applied by Congress.

Our multi-country manufacturing and supply chain model is designed to achieve efficient, timely, and accurate order fulfillment while maintaining appropriate levels of inventory.

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We have also integrated our Vera Bradley planning, forecasting, and segmentation processes under one function called Merchandise Planning and Allocation.

Approximately half of Vera Bradley product sales are cotton-based.

Our other fabrics include fleece, polyester, and microfiber.

We source our raw materials from various suppliers in Asia, with the majority of non-cotton based products coming from China and South Korea.

We operate an office in Hong Kong to lead the global supply chain in As ia, including the oversight of sourcing and procurement.

Our cotton-based products are sourced from areas outside of China.

Approximately 40% of Vera Bradley product sales are derived from cotton-based materials.

Our remaining fabrics and materials including leather, fleece, polyester, nylon, and microfiber.

We work with fabric mill partners across Asia and work with leather tannery partners in South Korea and Europe.

Most of our non-cotton fabrics are sourced in China and South Korea.

The majority of our cotton-based products are sourced from India, South Korea, and Pakistan.

Our global sourcing team identifies, evaluates, and selects suppliers to fulfill the sourcing strategy.

Conducting market analysis and supplier assessment to identify potential partners are integral to maintaining a competitive edge and driving profitability.

The global sourcing team

collaborates with carefully selected and screened suppliers to negotiate contracts and agreements, balance cost, lead time, quality, and reliability across our supplier network and maximize operational efficiency.

The global sourcing team collaborates with carefully selected and screened suppliers to negotiate contracts and agreements, balance cost, lead time, quality, and reliability across our supplier network and maximize operational efficiency.

Developing a long-term and mutually beneficial relations with suppliers and to foster collaboration and innovation is an important part of our sourcing matrix.

The global sourcing team ensures a diversified supplier base to minimize single source dependency and is also monitoring geopolitical factors and market trends to anticipate and mitigate supply chain risks.

We actively mitigate raw materials price increases through purchasing at advantageous times and periods.

We proactively manage raw materials cost fluctuations through securing early bookings at strategically favorable times.

All of our suppliers must comply with our quality standards, and we use only a limited number of pre-approved suppliers who have demonstrated a commitment to delivering the highest quality products.

We are continually updating our factory audit process and building a better compliance program to ensure our vendor code of conduct is met.

In fiscal 2022 we moved from internal factory audits to partnering with BetterWork to conduct these audits.

We partner with BetterWork to conduct our factory audits.

BetterWork brings diverse groups toge ther (governments, global brands, factory owners, unions, and workers) to improve working conditions in the garment industry and make the sector more competitive.

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Pura Vida products are sourced primarily from El Salvador, as well as China, India, Guatemala, Cambodia, and Indonesia.

We have continued an active supply chain diversification process to ensure a focus on maintaining flexibility and to help mitigate the risk of concentrated production, similar to the Vera Bradley supply chain.

When determining the size of orders placed with our manufacturers, we take into account forward-looking demand, lead times for specific products, current inventory levels, and minimum order quantity requirements.

Pura Vida has continued an active supply chain diversification process to ensure a focus on maintaining flexibility and to help mitigate the risk of concentrated production, similar to the Vera Bradley supply chain.

When determining the size of orders placed with our manufacturers, Pura Vida has taken into account forward-looking demand, lead times for specific products, current inventory levels, and minimum order quantity requirements.

Overseas production has resulted in substantial cost savings and a reduction of capital investment.

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e-commerce site and wholesale accounts are distributed primarily through a third-party provider in Tijuana, Mexico.

Pura Vida also distributes product through third-party providers in the Netherlands and Canada, which supports European e-commerce and Canadian wholesale operations, respectively.

Pura Vida also distributes product through third-party provider in Canada, which supports Canadian wholesale operations.

Management Information Systems

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Our information systems are designed to provide, among other things, enterprise class business management, comprehensive order processing for all commerce channels, production, accounting, and management information and analytics for the product development, retail, sales, marketing, distribution, finance, and human resources functions of our business.

At Vera Bradley, our ERP, POS, Business Intelligence, and Order Management systems are on cloud-based platforms, streamlining and simplifying our work and providing for additional capabilities such as mobile POS and multi-company operations on the same platform.

We completed our ERP migration during fiscal 2022 for Pura Vida, so that our entire enterprise is on a unified technology platform.

We continue to assess our on-premise and cloud-based technology solutions in an effort to ensure we have the optimal solutions for our business.

In fiscal 2024, we completed the implementation of a new suite of inventory planning tools to optimize full line assortments, localized assortments, pricing and promotion planning, and inventory positions.

For both Vera Bradley and Pura Vida, we face strong competition in each of the product lines and markets in which we compete.

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Our Company-wide diversity and inclusion initiative, Project Quilt, continues to enhance diversity, equality, and inclusion, focusing on three key areas – the Associate Experience, the Customer Experience, and the Community Experience.

The goal of the program is to make all associates feel welcome and a part of the Vera Bradley community.

Vera Bradley believes it is critical to engage its different stakeholders in order to understand their views, values, and ideas and to design a more responsible environment for all involved.

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Every year, we conduct an associate engagement survey in order to better understand our associates’ insights into our Company’s strengths and opportunities.

In calendar year 2023, we once again had strong participation, with over 70% of our associates sharing their candid feedback.

Our calendar year 2023 overall engagement score was once again above average ranking in the upper quartile compared to peer companies.

The feedback gave us insight into improvement opportunities and is instrumental in decisions we make to shape, strengthen, and improve our Company.

As a result of the survey feedback, over the last several years we have made meaningful improvements to benefits, career development, compensation, mental health and

wellness programs, and our facilities.

As a result of the survey feedback, over the last several years we have made meaningful improvements to benefits, career development, compensation, mental health and wellness programs, and our facilities.

We believe listening to our associates’ feedback provided through the annual engagement survey continually strengthens our corporate culture.

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business