Vera Bradley, Inc. ( VRA ) shares are trading lower on Wednesday.

The company reported third-quarter net sales of $80.58 million, down almost 30% year over year.

Jackie Ardrey, Chief Executive Officer, commented, “The third quarter was extremely challenging as we remained in the early stages of ‘Project Restoration’, our strategic initiative to transform our business model and transition Vera Bradley’s brand positioning.”

Vera Bradley Direct segment revenues totaled $52.5 million, a 27.4% decrease year over year. Comparable sales declined 27.2% in the third quarter, with weakness in all direct channels.

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Vera Bradley Indirect segment revenues totaled $18.0 million, a 27.9% decrease year over year. The decrease was primarily related to a decline in specialty and key account orders.

Pura Vida segment revenues totaled $10.1 million, a 42.9% decrease from $17.7 million in the prior year’s third quarter.

The third-quarter consolidated gross profit was $43.6 million, down from $63.0 million a year ago.

Gross margin was 54.1% of net revenues, slightly contracting from 54.8% last year. The decrease in gross profit percentage was due to sales channel mix and a rise in outbound freight costs.

The company reported adjusted earnings per share of 27 cents loss in the quarter under review, compared with 19 cents loss a year ago.

Outlook: Vera Bradley ( VRA ) expects FY25 revenues to be $385 million (prior view $410 million), falling short of the $410.02 million estimate, and projects consolidated EPS of approximately $0.25 loss (prior view $0.10) versus the $0.10 estimate.

Price Action: VRA shares are trading lower by 13.9% to $4.63 at last check Wednesday.

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