10:23 AM EST, 01/14/2025 (MT Newswires) -- Vera Bradley ( VRA ) said Tuesday it has launched a strategic cost efficiency initiative aimed at cutting expenses by $20 million annually, beginning in fiscal year 2026.

The initiative, part of Project Restoration, aims to streamline operations, reduce vendor contracts, and review expenses to enhance profitability, shareholder value, Chief Executive Jackie Ardrey said.

Around 75% of the savings are expected to support selling, general, and administrative expenses, while the remaining portion will impact gross profit, the company said, adding that the business actions driving the $20 million efficiency savings are expected to begin early in the year, with a full-year impact in fiscal year 2026.

The luggage and handbag design company said it will provide fiscal year 2026 guidance in March when it reports its Q4 financial results.

Shares of Vera Bradley ( VRA ) were up more than 3% in recent Tuesday trading.

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