# EDGAR Filing Document

**Accession Number:** 0001495320
**File Stem:** 0001628280-26-042444
**Filing Date:** 2026-6
**Character Count:** 138873
**Document Hash:** 026ce939f66bb810ce95ab75ff83931f
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001628280-26-042444.hdr.sgml**: 20260611

**ACCESSION NUMBER**: 0001628280-26-042444

**CONFORMED SUBMISSION TYPE**: 10-Q

**PUBLIC DOCUMENT COUNT**: 68

**CONFORMED PERIOD OF REPORT**: 20260502

**FILED AS OF DATE**: 20260611

**DATE AS OF CHANGE**: 20260611

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Vera Bradley, Inc.
- **CENTRAL INDEX KEY:** 0001495320
- **STANDARD INDUSTRIAL CLASSIFICATION:** LEATHER & LEATHER PRODUCTS [3100]
- **ORGANIZATION NAME:** 04 Manufacturing
- **EIN:** 272935063
- **FISCAL YEAR END:** 0130

**FILING VALUES:**
- **FORM TYPE:** 10-Q
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-34918
- **FILM NUMBER:** 261082450

**BUSINESS ADDRESS:**
- **STREET 1:** 12420 STONEBRIDGE ROAD
- **CITY:** ROANOKE
- **STATE:** IN
- **ZIP:** 46783
- **BUSINESS PHONE:** 260-482-4673

**MAIL ADDRESS:**
- **STREET 1:** 12420 STONEBRIDGE ROAD
- **CITY:** ROANOKE
- **STATE:** IN
- **ZIP:** 46783

?xml version='1.0' encoding='ASCII'? vra-20260502

**<u>[**Table of Contents**](#iab1af73559f74cba9d05199a53425229_7)</u>**

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

___________________________

**FORM 10-Q**

___________________________

☒ **QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

**For the Quarterly Period Ended May 2, 2026** 

**OR**

☐ **TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

**For the Transition Period From <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> to <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>**

**Commission File Number: 001-34918**

___________________________

![Vera Bradley, Inc. Logo.jpg](vra-20260502_g1.jpg)

**VERA BRADLEY, INC.**

**(Exact name of registrant as specified in its charter)**

___________________________

---

| | |
|:---|:---|
| **Indiana** | **27-2935063** |
| **(State or other jurisdiction of<br>incorporation or organization)** | **(I.R.S. Employer<br>Identification No.)** |
| **12420 Stonebridge Road,**<br>**Roanoke, Indiana** | **46783** |
| **(Address of principal executive offices)** | **(Zip Code)** |

---

**(877) 708-8372**

**(Registrant's telephone number, including area code)**

**None**

**(Former name, former address and former fiscal year, if changed since last report)**

___________________________

Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class Trading Symbol(s) Name of each exchange on which registered <br> <u>Common Stock, without par value</u> <u>VRA</u> <u>NASDAQ Global Select Market</u>

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.&nbsp;&nbsp;&nbsp;&nbsp;Yes ⌧&nbsp;&nbsp;&nbsp;&nbsp;No ◻

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).&nbsp;&nbsp;&nbsp;&nbsp;Yes ⌧&nbsp;&nbsp;&nbsp;&nbsp;No ◻

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See the definitions of "large accelerated filer," "accelerated filer" and "smaller reporting company" in Rule 12b-2 of the Exchange Act.

---

| | | | |
|:---|:---|:---|:---|
| Large accelerated filer | ◻ | Accelerated filer | ☐ |
| Non-accelerated filer | ☒ (Do not check if a smaller reporting company) | Smaller reporting company | ☐ |
| | | Emerging growth company | ☐ |
| If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ◻ | If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ◻ | If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ◻ | If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ◻ |

---

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).&nbsp;&nbsp;&nbsp;&nbsp;Yes ☐&nbsp;&nbsp;&nbsp;&nbsp;No ⌧

The registrant had 28,438,252 shares of its common stock outstanding as of June 4, 2026.

------

**<u>[**Table of Contents**](#iab1af73559f74cba9d05199a53425229_7)</u>**

**TABLE OF CONTENTS**

---

| | | |
|:---|:---|:---|
| **<u>[PART I. FINANCIAL INFORMATION](#iab1af73559f74cba9d05199a53425229_13)</u>** | **<u>[PART I. FINANCIAL INFORMATION](#iab1af73559f74cba9d05199a53425229_13)</u>** | |
| Item 1. | <u>[Financial Statements (unaudited)](#iab1af73559f74cba9d05199a53425229_16)</u> |  |
|  | <u>[Condensed Consolidated Balance Sheets as of](#iab1af73559f74cba9d05199a53425229_19)[May 2, 202](#iab1af73559f74cba9d05199a53425229_19)[6](#iab1af73559f74cba9d05199a53425229_19)[an](#iab1af73559f74cba9d05199a53425229_19)[d](#iab1af73559f74cba9d05199a53425229_19)[January 31, 2026](#iab1af73559f74cba9d05199a53425229_19)</u> | <u>[4](#iab1af73559f74cba9d05199a53425229_19)</u> |
|  | <u>[Condensed Consolidated Statements of Operations for the Thirteen](#iab1af73559f74cba9d05199a53425229_25)[Weeks Ended May 2, 2026 and May 3, 2025](#iab1af73559f74cba9d05199a53425229_25)</u> | <u>[5](#iab1af73559f74cba9d05199a53425229_25)</u> |
|  | <u>[Condensed Consolidated Statements of Comprehensive](#iab1af73559f74cba9d05199a53425229_28)[Loss](#iab1af73559f74cba9d05199a53425229_28)[for the Thirteen](#iab1af73559f74cba9d05199a53425229_28)[Weeks Ended May 2, 2026 and May 3, 2025](#iab1af73559f74cba9d05199a53425229_28)</u> | <u>[6](#iab1af73559f74cba9d05199a53425229_28)</u> |
|  | <u>[Condensed Consolidated Statements of Shareholders' Equity for the Thirteen](#iab1af73559f74cba9d05199a53425229_31)[Weeks Ended May 2, 2026 and May 3, 2025](#iab1af73559f74cba9d05199a53425229_31)</u> | <u>[7](#iab1af73559f74cba9d05199a53425229_31)</u> |
|  | <u>[Condensed Consolidated Statements of Cash Flows for the Thirteen Weeks Ended May 2, 2026 and May 3, 2025](#iab1af73559f74cba9d05199a53425229_34)</u> | <u>[8](#iab1af73559f74cba9d05199a53425229_34)</u> |
|  | <u>[Notes to the Condensed Consolidated Financial Statements](#iab1af73559f74cba9d05199a53425229_37)</u> | <u>[10](#iab1af73559f74cba9d05199a53425229_37)</u> |
| Item 2. | <u>[Management's Discussion and Analysis of Financial Condition and Results of Operations](#iab1af73559f74cba9d05199a53425229_85)</u> | <u>[24](#iab1af73559f74cba9d05199a53425229_85)</u> |
| Item 3. | <u>[Quantitative and Qualitative Disclosures About Market Risk](#iab1af73559f74cba9d05199a53425229_88)</u> | <u>[32](#iab1af73559f74cba9d05199a53425229_88)</u> |
| Item 4. | <u>[Controls and Procedures](#iab1af73559f74cba9d05199a53425229_91)</u> | <u>[32](#iab1af73559f74cba9d05199a53425229_91)</u> |
| **<u>[PART II. OTHER INFORMATION](#iab1af73559f74cba9d05199a53425229_94)</u>** | **<u>[PART II. OTHER INFORMATION](#iab1af73559f74cba9d05199a53425229_94)</u>** |  |
| Item 1. | <u>[Legal Proceedings](#iab1af73559f74cba9d05199a53425229_97)</u> | <u>[33](#iab1af73559f74cba9d05199a53425229_97)</u> |
| Item 1A. | <u>[Risk Factors](#iab1af73559f74cba9d05199a53425229_100)</u> | <u>[33](#iab1af73559f74cba9d05199a53425229_100)</u> |
| Item 2. | <u>[Unregistered Sales of Equity Securities and Use of Proceeds](#iab1af73559f74cba9d05199a53425229_103)</u> | <u>[34](#iab1af73559f74cba9d05199a53425229_103)</u> |
| Item 5. | <u>[Other Information](#iab1af73559f74cba9d05199a53425229_106)</u> | <u>[34](#iab1af73559f74cba9d05199a53425229_106)</u> |
| Item 6. | <u>[Exhibits](#iab1af73559f74cba9d05199a53425229_109)</u> | <u>[35](#iab1af73559f74cba9d05199a53425229_109)</u> |

---

------

**<u>[**Table of Contents**](#iab1af73559f74cba9d05199a53425229_7)</u>**

**FORWARD-LOOKING STATEMENTS**

This report contains forward-looking statements that are subject to risks and uncertainties. All statements other than statements of historical or current fact included in this report are forward-looking statements. Forward-looking statements include references to our current expectations and projections relating to our financial condition, results of operations, plans, objectives, strategies, future performance, and business. You can identify forward-looking statements by the fact that they do not relate strictly to historical or current facts. These statements may include words such as "anticipate," "estimate," "expect," "project," "plan," "intend," "believe," "may," "might," "will," "should," "can have," and "likely" and other words and terms of similar meaning in connection with any discussion of the timing or nature of future operating or financial performance or other events. For example, all statements we make relating to our estimated and projected earnings, revenues, costs, expenditures, cash flows, growth rates, and financial results, our plans and objectives for future operations, growth, initiatives, or strategies, or the expected outcome or impact of pending or threatened litigation are forward-looking statements. All forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those that we expected, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• possible inability to successfully implement our long-term strategic plans;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• possible declines in our comparable sales;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• possible inability to maintain and enhance our brands;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• possible failure of our multi-channel distribution model;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• possible adverse changes in general economic conditions and their impact on consumer confidence and consumer spending, including political unrest, social unrest, acts of war and terrorism, and other related matters;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• possible inability to predict and respond in a timely manner to changes in consumer demand;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• possible inability to successfully open new stores and/or operate current stores as planned;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• possible loss of key management or design associates or inability to attract and retain the talent required for our business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• possible data security or privacy breaches or disruptions in our computer systems or websites;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• possible disruptions in our supply chain;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• possible new or increased tariffs on our products and increases in inbound and outbound freight expense that could lead to increased product costs and lower profit margins; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• public health pandemics and actions by governmental or other actors regarding containment.

We derive many of our forward-looking statements from our operating plans and forecasts, which are based upon detailed assumptions. While we believe that our assumptions are reasonable, we caution that it is difficult to predict the impact of known factors, and it is impossible for us to anticipate all factors that could affect our actual results.

For a discussion of the above described risks and uncertainties and other risks and uncertainties that could cause actual results to differ materially from those contained in our forward-looking statements, please refer to "Risk Factors" in Item 1A of our Annual Report on Form 10-K for the fiscal year ended January 31, 2026, as well as in Item 1A herein.

We caution you that the risks and uncertainties identified by us may not be all of the factors that are important to you. Furthermore, the forward-looking statements included in this report are made only as of the date hereof. We undertake no obligation to publicly update or revise any forward-looking statement as a result of new information, future events, or otherwise, except as required by law.

------

**<u>[**Table of Contents**](#iab1af73559f74cba9d05199a53425229_7)</u>**

**PART I. FINANCIAL INFORMATION**

**ITEM 1.&nbsp;&nbsp;&nbsp;&nbsp;FINANCIAL STATEMENTS**

**Vera Bradley, Inc.**

**Condensed Consolidated Balance Sheets**

**(in thousands)**

**(unaudited)**

---

| | | |
|:---|:---|:---|
| | **May 2,<br>2026** | **January 31,<br>2026** |
| **Assets** | | |
| Current assets: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents | $12506 | $18513 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable, net | 17296 | 17301 |
| &nbsp;&nbsp;&nbsp;&nbsp;Inventories | 73018 | 75951 |
| &nbsp;&nbsp;&nbsp;&nbsp;Short-term contingent consideration | 1835 | 1605 |
| &nbsp;&nbsp;&nbsp;&nbsp;Income taxes receivable | 312 | 317 |
| &nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets | 6500 | 6034 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current assets | 111467 | 119721 |
| Operating right-of-use assets | 58642 | 63233 |
| Property, plant, and equipment, net | 44795 | 46358 |
| Long-term contingent consideration |  | 230 |
| Other assets | 4339 | 4463 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets | $219243 | $234005 |
| **Liabilities and Shareholders' Equity** |  |  |
| Current liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | $9186 | $16235 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accrued employment costs | 7502 | 5394 |
| &nbsp;&nbsp;&nbsp;&nbsp;Short-term operating lease liabilities | 18073 | 18620 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other accrued liabilities | 10103 | 10185 |
| &nbsp;&nbsp;&nbsp;&nbsp;Income taxes payable | 130 | 16 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current liabilities | 44994 | 50450 |
| Long-term operating lease liabilities | 47198 | 51914 |
| Other long-term liabilities | 2 | 2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities | 92194 | 102366 |
| Commitments and contingencies |  |  |
| Shareholders' equity: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Preferred stock; 5,000 shares authorized, no shares issued or outstanding |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Common stock, without par value; 200,000 shares authorized, 44,273 and 43,800 shares issued and 28,438 and 27,966 shares outstanding, respectively |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Additional paid-in-capital | 116399 | 116152 |
| &nbsp;&nbsp;&nbsp;&nbsp;Retained earnings | 167614 | 172439 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accumulated other comprehensive loss | (144) | (132) |
| &nbsp;&nbsp;&nbsp;&nbsp;Treasury stock | (156820) | (156820) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total shareholders' equity | 127049 | 131639 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities and shareholders' equity | $219243 | $234005 |

---

The accompanying notes are an integral part of these financial statements.

------

**<u>[**Table of Contents**](#iab1af73559f74cba9d05199a53425229_7)</u>**

**Vera Bradley, Inc.**

**Condensed Consolidated Statements of Operations**

**(in thousands, except per share data)**

**(unaudited)**

---

| | | |
|:---|:---|:---|
| | **Thirteen Weeks Ended** | **Thirteen Weeks Ended** |
| | **May 2,<br>2026** | **May 3,<br>2025** |
| Net revenues | $55702 | $51652 |
| Cost of sales | 26871 | 28885 |
| &nbsp;&nbsp;&nbsp;&nbsp;Gross profit | 28831 | 22767 |
| Selling, general, and administrative expenses | 34128 | 40804 |
| Other income, net | 649 | 180 |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating loss from continuing operations | (4648) | (17857) |
| Interest (expense) income, net | (65) | 4 |
| &nbsp;&nbsp;&nbsp;&nbsp;Loss from continuing operations before income taxes | (4713) | (17853) |
| Income tax expense | 112 | 407 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net loss from continuing operations | (4825) | (18260) |
| &nbsp;&nbsp;&nbsp;&nbsp;Loss from discontinued operations, net of income tax |  | (15200) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net loss | $(4825) | $(33460) |
| Basic weighted-average shares outstanding | 28121 | 27773 |
| Diluted weighted-average shares outstanding | 28121 | 27773 |
| Basic net loss per share: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Continuing operations | $(0.17) | $(0.66) |
| &nbsp;&nbsp;&nbsp;&nbsp;Discontinued operations | $— | $(0.54) |
| &nbsp;&nbsp;&nbsp;&nbsp;Basic net loss per share | $(0.17) | $(1.20) |
| Diluted net loss per share: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Continuing operations | $(0.17) | $(0.66) |
| &nbsp;&nbsp;&nbsp;&nbsp;Discontinued operations | $— | $(0.54) |
| &nbsp;&nbsp;&nbsp;&nbsp;Diluted net loss per share | $(0.17) | $(1.20) |

---

The accompanying notes are an integral part of these financial statements.

------

**<u>[**Table of Contents**](#iab1af73559f74cba9d05199a53425229_7)</u>**

**Vera Bradley, Inc.**

**Condensed Consolidated Statements of Comprehensive Loss**

**(in thousands)**

**(unaudited)**

---

| | | |
|:---|:---|:---|
| | **Thirteen Weeks Ended** | **Thirteen Weeks Ended** |
| | **May 2,<br>2026** | **May 3,<br>2025** |
| Net loss | $(4825) | $(33460) |
| Cumulative translation adjustment | (12) | (44) |
| &nbsp;&nbsp;&nbsp;&nbsp;Comprehensive loss, net of tax | $(4837) | $(33504) |

---

The accompanying notes are an integral part of these financial statements.

------

**<u>[**Table of Contents**](#iab1af73559f74cba9d05199a53425229_7)</u>**

**Vera Bradley, Inc.**

**Condensed Consolidated Statements of Shareholders' Equity**

**(in thousands, except share data)**

**(unaudited)**

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Number of Shares** | **Number of Shares** | | | | | |
| | **Common<br>Stock** | **Treasury<br>Stock** |<br>**Additional<br>Paid-in<br>Capital** |<br>**Retained Earnings** |<br>**Accumulated<br>Other<br>Comprehensive Loss** |<br>**Treasury<br>Stock** |<br>**Total Shareholders'<br>Equity** |
| **Balance at January 31, 2026** | **27965520** | **15834579** | $**116152** | $**172439** | $**(132)** | $**(156820)** | $**131639** |
| Net loss |  |  |  | (4825) |  |  | (4825) |
| Translation adjustments |  |  |  |  | (12) |  | (12) |
| Restricted shares vested, net of repurchase for taxes | 472914 |  | (412) |  |  |  | (412) |
| Stock-based compensation |  |  | 659 |  |  |  | 659 |
| **Balance at May 2, 2026** | **28438434** | **15834579** | $**116399** | $**167614** | $**(144)** | $**(156820)** | $**127049** |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Number of Shares** | **Number of Shares** | | | | | |
| | **Common<br>Stock** | **Treasury<br>Stock** |<br>**Additional<br>Paid-in<br>Capital** |<br>**Retained Earnings** |<br>**Accumulated<br>Other<br>Comprehensive Loss** |<br>**Treasury<br>Stock** |<br>**Total Shareholders'<br>Equity** |
| **Balance at February 1, 2025** | **27700900** | **15834579** | $**115515** | $**220279** | $**(19)** | $**(156820)** | $**178955** |
| Net loss |  |  |  | (33460) |  |  | (33460) |
| Translation adjustments |  |  |  |  | (44) |  | (44) |
| Restricted shares vested, net of repurchase for taxes | 217422 |  | (171) |  |  |  | (171) |
| Stock-based compensation |  |  | 754 |  |  |  | 754 |
| **Balance at May 3, 2025** | **27918322** | **15834579** | $**116098** | $**186819** | $**(63)** | $**(156820)** | $**146034** |

---

The accompanying notes are an integral part of these financial statements.

------

**<u>[**Table of Contents**](#iab1af73559f74cba9d05199a53425229_7)</u>**

**Vera Bradley, Inc.**

**Condensed Consolidated Statements of Cash Flows**

**(in thousands)**

**(unaudited)**

---

| | | |
|:---|:---|:---|
| | **Thirteen Weeks Ended** | **Thirteen Weeks Ended** |
| | **May 2,<br>2026** | **May 3,<br>2025** |
| **Cash flows from operating activities** | | |
| Net loss | $(4825) | $(33460) |
| Adjustments to reconcile net loss to net cash used in operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation of property, plant, and equipment | 1793 | 2188 |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization of operating right-of-use assets | 4931 | 5328 |
| &nbsp;&nbsp;&nbsp;&nbsp;Impairment charges |  | 1048 |
| &nbsp;&nbsp;&nbsp;&nbsp;Provision for doubtful accounts | 38 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation | 1005 | 754 |
| &nbsp;&nbsp;&nbsp;&nbsp;Loss on sale of business |  | 15200 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other non-cash loss, net | 2 | 14 |
| &nbsp;&nbsp;&nbsp;&nbsp;Changes in assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable | (33) | (1405) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventories | 2933 | (7379) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other assets | (342) | (733) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | (6939) | 4314 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income taxes | 119 | 320 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating lease liabilities, net | (5603) | (6060) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued and other liabilities | 1671 | 1969 |
| Net cash used in operating activities | (5250) | (17902) |
| **Cash flows from investing activities** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Purchases of property, plant, and equipment | (333) | (1871) |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from sale of business, net of cash disposed |  | 903 |
| Net cash used in investing activities | (333) | (968) |
| **Cash flows from financing activities** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Tax withholdings for equity compensation | (412) | (171) |
| &nbsp;&nbsp;&nbsp;&nbsp;Borrowings under asset-based revolving credit agreement |  | (5000) |
| &nbsp;&nbsp;&nbsp;&nbsp;Repayment of borrowings under asset-based revolving credit agreement |  | 5000 |
| Net cash used in financing activities | (412) | (171) |
| Effect of exchange rate changes on cash and cash equivalents | (12) | (44) |
| Net decrease in cash and cash equivalents | (6007) | (19085) |
| Cash and cash equivalents, beginning of period | 18513 | 30366 |
| Cash and cash equivalents, end of period | $12506 | $11281 |

---

------

**<u>[**Table of Contents**](#iab1af73559f74cba9d05199a53425229_7)</u>**

**Vera Bradley, Inc.**

**Condensed Consolidated Statements of Cash Flows**

**(in thousands)**

**(continued)**

**(unaudited)**

---

| | | |
|:---|:---|:---|
| | **Thirteen Weeks Ended** | **Thirteen Weeks Ended** |
| | **May 2,<br>2026** | **May 3,<br>2025** |
| **Supplemental disclosure of cash flow information** | | |
| Cash paid for interest | $45 | $19 |
| Cash (received) paid for income taxes, net | $(5) | $85 |
| **Supplemental disclosure of non-cash activity** |  |  |
| Non-cash operating, investing, and financing activities |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Purchases of property, plant, and equipment incurred but not yet paid | $48 | $755 |
| &nbsp;&nbsp;&nbsp;&nbsp;Contingent consideration related to sale of business | $1835 | $2552 |

---

Refer to Note 3 herein for supplemental cash flow information regarding the Company's leases. Refer to Note 13 herein for supplemental cash flow information regarding the discontinued operations.

The accompanying notes are an integral part of these financial statements.

------

**<u>[**Table of Contents**](#iab1af73559f74cba9d05199a53425229_7)</u>**

**Vera Bradley, Inc.**

**Notes to the Condensed Consolidated Financial Statements**

**(unaudited)**

**1. Description of the Company and Basis of Presentation**

The term "Company" refers to Vera Bradley, Inc. and its wholly owned subsidiaries, except where the context requires otherwise or where otherwise indicated.

Vera Bradley is a leading designer of women's handbags, luggage and travel items, fashion and home accessories, and unique gifts. Founded in 1982 by friends Barbara Bradley Baekgaard and Patricia R. Miller, the brand's innovative designs, iconic patterns, and brilliant colors continue to inspire and connect women.

On March 11, 2025, the Company entered into an Interest Purchase Agreement (the "Agreement") to sell one hundred percent (100%) of Creative Genius, Inc. ("Creative Genius"), which operates under the name Pura Vida Bracelets. The sale consummated on March 31, 2025. As a result, the operations of Pura Vida have been classified as discontinued operations in the consolidated financial statements in accordance with ASC 205-20, *Discontinued Operations*. Prior period amounts have been retrospectively adjusted to conform to the current period presentation. Unless otherwise specified, disclosures in these condensed consolidated financial statements reflect continuing operations only.

Following the sale, Pura Vida is no longer included in the Company's consolidated financial results. Refer to Note 13 for additional information.

The Company has two reportable segments: Direct and Indirect. During the thirteen weeks ended May 3, 2025, the Company completed the sale of Pura Vida, which was previously considered a reportable segment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Direct segment consists of sales of Vera Bradley products through Vera Bradley full-line and outlet stores in the United States; e-commerce sites (verabradley.com, verabradleyoutlet.com, and international.verabradley.com); direct to consumer marketplaces; and typically the Vera Bradley annual outlet sale in Fort Wayne, Indiana. As of May 2, 2026, the Company operated 26 full-line stores and 86 outlet stores.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Indirect segment consists of revenues generated through the distribution of Vera Bradley-branded products to specialty retailers representing approximately 1,200 locations, substantially all of which are located in the United States; key accounts, which include department stores, national accounts, and third-party inventory liquidators; and royalties recognized through licensing agreements related to the Vera Bradley brand.

The accompanying unaudited consolidated financial statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission ("SEC"). Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States ("GAAP") have been condensed or omitted as permitted by such rules and regulations. These interim condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes included in the Company's Annual Report on Form 10-K for the fiscal year ended January 31, 2026, filed with the SEC.

The interim financial statements reflect all adjustments that are, in the opinion of management, necessary to present fairly the results for the interim periods presented. All such adjustments are of a normal, recurring nature. The results of operations for the thirteen weeks ended May 2, 2026, are not necessarily indicative of the results to be expected for the full fiscal year due to, in part, seasonal fluctuations in the business and the uncertainty of macroeconomic factors on future periods, including inflation and other related matters.

**Principles of Consolidation**

The condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. The Company has eliminated intercompany balances and transactions in consolidation.

During the thirteen weeks ended May 3, 2025, the Company completed the sale of its wholly owned subsidiary, Creative Genius, also referred to as Pura Vida. As a result, the operations of Pura Vida have been classified as discontinued operations in the consolidated financial statements in accordance with ASC 205-20.

**Fiscal Periods**

The Company's fiscal year ends on the Saturday closest to January 31. References to the fiscal quarters ended May 2, 2026 and May 3, 2025 refer to the thirteen week periods ended on those dates.

------

**<u>[**Table of Contents**](#iab1af73559f74cba9d05199a53425229_7)</u>**

**Vera Bradley, Inc.**

**Notes to the Condensed Consolidated Financial Statements**

**(unaudited)**

**Recently Issued Accounting Pronouncements**

In November 2024, the FASB issued Accounting Standards Update ASU 2024-03, "Disaggregation of Income Statement Expenses". The ASU requires financial statement footnote disclosure of specified information about certain costs and expenses, including purchases of inventory, employee compensation, depreciation, and intangible asset amortization. The ASU is effective for fiscal years beginning after December 15, 2026 (the Company's fiscal year 2028) and interim reporting periods beginning after December 15, 2027 (interim periods for the Company's fiscal year 2029). Public business entities are required to apply the guidance prospectively, however, retrospective application is permitted. The Company is currently evaluating the impact of this ASU but expects the impact to be limited to financial statement footnote disclosures.

In September 2025, the FASB issued Accounting Standards Update (ASU) No. 2025-06, "Intangibles - Goodwill and Other-Internal-Use Software (Topic 350-40): Targeted Improvements to the Accounting for Internal-Use Software". This amendment modernizes and makes targeted improvements to the accounting for software costs found under Topic 350-40, effective for fiscal years and interim periods beginning after December 15, 2027, with early adoption permitted. The Company is currently evaluating the impact of adopting this standard on its consolidated financial statements and disclosures.

**Recent Business Developments**

In February 2026, the U.S. Supreme Court issued a ruling striking down certain tariffs previously imposed under the International Emergency Economic Powers Act ("IEEPA"). In response, the U.S. Customs and Border Protection agency established a process for importers to submit refund claims for certain previously paid IEEPA tariffs.

The Company has submitted, or may submit, refund requests related to certain previously paid IEEPA tariffs. The timing of claim acceptance, resolution and payment remains uncertain, therefore the Company will recognize any related refunds and interest when cash is received. As of May 2, 2026, no refunds had been received.

------

**<u>[**Table of Contents**](#iab1af73559f74cba9d05199a53425229_7)</u>**

**Vera Bradley, Inc.**

**Notes to the Condensed Consolidated Financial Statements**

**(unaudited)**

**2. Revenue from Contracts with Customers**

**Disaggregation of Revenue**

The following presents the Company's net revenues disaggregated by product category for the thirteen weeks ended May 2, 2026 and May 3, 2025 (in thousands):

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Thirteen Weeks Ended** | **Thirteen Weeks Ended** | **Thirteen Weeks Ended** | **Thirteen Weeks Ended** | **Thirteen Weeks Ended** |
| | **May 2, 2026** | **May 2, 2026** | **May 2, 2026** | **May 2, 2026** | **May 2, 2026** |
| | **Direct<br>Segment** | | **Indirect Segment** | | **Total** |
| *Product categories* |  |  |  |  |  |
| Bags | $19676 |  | $6105 |  | $25781 |
| Travel | 12110 |  | 2116 |  | 14226 |
| Accessories | 7350 |  | 1449 |  | 8799 |
| Home | 3100 |  | 199 |  | 3299 |
| Apparel/Footwear | 1178 |  | 30 |  | 1208 |
| Other | 1439 | (1) | 950 | (2) | 2389 |
| Total net revenues | $44853 | (3) | $10849 | (4) | $55702 |
| (1) Primarily includes net revenues from stationery, freight, and gift card breakage. | (1) Primarily includes net revenues from stationery, freight, and gift card breakage. | (1) Primarily includes net revenues from stationery, freight, and gift card breakage. | (1) Primarily includes net revenues from stationery, freight, and gift card breakage. | (1) Primarily includes net revenues from stationery, freight, and gift card breakage. | (1) Primarily includes net revenues from stationery, freight, and gift card breakage. |
| (2) Primarily includes net revenues from licensing agreements, freight, and merchandising. | (2) Primarily includes net revenues from licensing agreements, freight, and merchandising. | (2) Primarily includes net revenues from licensing agreements, freight, and merchandising. | (2) Primarily includes net revenues from licensing agreements, freight, and merchandising. | (2) Primarily includes net revenues from licensing agreements, freight, and merchandising. | (2) Primarily includes net revenues from licensing agreements, freight, and merchandising. |
| (3) Net revenues were related to product sales recognized at a point in time. | (3) Net revenues were related to product sales recognized at a point in time. | (3) Net revenues were related to product sales recognized at a point in time. | (3) Net revenues were related to product sales recognized at a point in time. | (3) Net revenues were related to product sales recognized at a point in time. | (3) Net revenues were related to product sales recognized at a point in time. |
| (4) $9.9 million of net revenues related to product sales recognized at a point in time and $0.9 million of net revenues related to sales-based royalties recognized over time. | (4) $9.9 million of net revenues related to product sales recognized at a point in time and $0.9 million of net revenues related to sales-based royalties recognized over time. | (4) $9.9 million of net revenues related to product sales recognized at a point in time and $0.9 million of net revenues related to sales-based royalties recognized over time. | (4) $9.9 million of net revenues related to product sales recognized at a point in time and $0.9 million of net revenues related to sales-based royalties recognized over time. | (4) $9.9 million of net revenues related to product sales recognized at a point in time and $0.9 million of net revenues related to sales-based royalties recognized over time. | (4) $9.9 million of net revenues related to product sales recognized at a point in time and $0.9 million of net revenues related to sales-based royalties recognized over time. |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Thirteen Weeks Ended** | **Thirteen Weeks Ended** | **Thirteen Weeks Ended** | **Thirteen Weeks Ended** | **Thirteen Weeks Ended** |
| | **May 3, 2025** | **May 3, 2025** | **May 3, 2025** | **May 3, 2025** | **May 3, 2025** |
| | **Direct <br>Segment** | | **Indirect Segment** | | **Total** |
| *Product categories* |  |  |  |  |  |
| Bags | $17184 |  | $4480 |  | $21664 |
| Travel | 12172 |  | 2315 |  | 14487 |
| Accessories | 7223 |  | 765 |  | 7988 |
| Home | 3537 |  | 232 |  | 3769 |
| Apparel/Footwear | 1562 |  | 75 |  | 1637 |
| Other | 1405 | (1) | 702 | (2) | 2107 |
| Total net revenues | $43083 | (3) | $8569 | (4) | $51652 |
| (1) Primarily includes net revenues from stationery, freight, and gift card breakage. | (1) Primarily includes net revenues from stationery, freight, and gift card breakage. | (1) Primarily includes net revenues from stationery, freight, and gift card breakage. | (1) Primarily includes net revenues from stationery, freight, and gift card breakage. | (1) Primarily includes net revenues from stationery, freight, and gift card breakage. | (1) Primarily includes net revenues from stationery, freight, and gift card breakage. |
| (2) Primarily includes net revenues from licensing agreements and freight. | (2) Primarily includes net revenues from licensing agreements and freight. | (2) Primarily includes net revenues from licensing agreements and freight. | (2) Primarily includes net revenues from licensing agreements and freight. | (2) Primarily includes net revenues from licensing agreements and freight. | (2) Primarily includes net revenues from licensing agreements and freight. |
| (3) Net revenues were related to product sales recognized at a point in time. | (3) Net revenues were related to product sales recognized at a point in time. | (3) Net revenues were related to product sales recognized at a point in time. | (3) Net revenues were related to product sales recognized at a point in time. | (3) Net revenues were related to product sales recognized at a point in time. | (3) Net revenues were related to product sales recognized at a point in time. |
| (4) $8.0 million of net revenues related to product sales recognized at a point in time and $0.6 million of net revenues related to sales-based royalties recognized over time. | (4) $8.0 million of net revenues related to product sales recognized at a point in time and $0.6 million of net revenues related to sales-based royalties recognized over time. | (4) $8.0 million of net revenues related to product sales recognized at a point in time and $0.6 million of net revenues related to sales-based royalties recognized over time. | (4) $8.0 million of net revenues related to product sales recognized at a point in time and $0.6 million of net revenues related to sales-based royalties recognized over time. | (4) $8.0 million of net revenues related to product sales recognized at a point in time and $0.6 million of net revenues related to sales-based royalties recognized over time. | (4) $8.0 million of net revenues related to product sales recognized at a point in time and $0.6 million of net revenues related to sales-based royalties recognized over time. |

---

------

**<u>[**Table of Contents**](#iab1af73559f74cba9d05199a53425229_7)</u>**

**Vera Bradley, Inc.**

**Notes to the Condensed Consolidated Financial Statements**

**(unaudited)**

**Contract Balances**

Contract liabilities as of May 2, 2026 and January 31, 2026, were $1.6 million. The balance as of May 2, 2026 and January 31, 2026 consisted primarily of unredeemed gift cards. These contract liabilities are recognized within other accrued liabilities on the Company's Condensed Consolidated Balance Sheets. Substantially all contract liabilities are recognized within one year. The Company did not have contract assets as of May 2, 2026 and January 31, 2026.

The balance for accounts receivable from contracts with customers, net of allowances, as of May 2, 2026 and January 31, 2026, was $16.2 million and $16.4 million, respectively, which is recognized within accounts receivable, net, on the Company's Condensed Consolidated Balance Sheets. The provision for doubtful accounts was $0.5 million as of May 2, 2026 and January 31, 2026, respectively. The provision for doubtful accounts is based upon the likelihood of default expected during the life of the receivable.

**&nbsp;&nbsp;&nbsp;&nbsp;**

**Performance Obligations**

The performance obligations for the Direct and Indirect segments include the promise to transfer distinct goods (or a bundle of distinct goods). The Indirect segment also includes the right to access intellectual property ("IP") related to the Vera Bradley brand.

**Remaining Performance Obligations**

The Company does not have remaining performance obligations in excess of one year or contracts that it does not have the right to invoice as of May 2, 2026.

**3. Leases**

**Discount Rate**

The weighted-average discount rate as of May 2, 2026, and May 3, 2025 was 5.1% and 5.0%, respectively. The discount rate is not readily determinable in the lease; therefore, the Company estimated the incremental borrowing rate, at the commencement date of each lease, which is the rate of interest it would have to borrow on a collateralized basis over a similar term with similar payments.

**Leases Not Yet Commenced**

As of May 2, 2026, the Company had one lease which was executed but for which it did not have control of the underlying asset; therefore, the lease liability and right-of-use asset are not recorded on the Condensed Consolidated Balance Sheet. This lease contains undiscounted lease payments, which will be included in the determination of the lease liability, totaling approximately $1.2 million and has a term of approximately 3 years commencing in fiscal year 2027.

**Amounts Recognized in the Condensed Consolidated Financial Statements**

The following lease expense is recorded within cost of sales for the Asia sourcing office and certain equipment leases and within selling, general, and administrative expenses for all other leases, including retail store leases, in the Company's Condensed Consolidated Statement of Operations for the thirteen weeks ended May 2, 2026 and May 3, 2025 (in thousands):

---

| | | |
|:---|:---|:---|
| | **Thirteen Weeks Ended** | **Thirteen Weeks Ended** |
| | **May 2, 2026** | **May 3, 2025** |
| Operating lease cost | $5846 | $6358 |
| Variable lease cost | 1102 | 1084 |
| Short-term lease cost | 61 | 112 |
| Less: Sublease income <sup>(1)</sup> | (102) | (105) |
| Total net lease cost | $6907 | $7449 |
| (1) Related to the sublease of a former Company location. | (1) Related to the sublease of a former Company location. | (1) Related to the sublease of a former Company location. |

---

------

**<u>[**Table of Contents**](#iab1af73559f74cba9d05199a53425229_7)</u>**

**Vera Bradley, Inc.**

**Notes to the Condensed Consolidated Financial Statements**

**(unaudited)**

The weighted-average remaining lease term as of May 2, 2026 and May 3, 2025 was 3.9 years and 4.5 years, respectively.

Supplemental operating cash flow information was as follows (in thousands):

---

| | | |
|:---|:---|:---|
| | **Thirteen Weeks Ended** | **Thirteen Weeks Ended** |
| | **May 2, 2026** | **May 3, 2025** |
| Cash paid for amounts included in the measurement of operating lease liabilities<sup>(1)</sup> | $6522 | $7126 |
| Right-of-use assets increase as a result of new and modified operating lease liabilities, net | $339 | $1571 |
| (1) $1.1 million and $2.7 million of lease liabilities were recorded within accounts payable on the Company's Consolidated Balance Sheets as of May 2, 2026 and May 3, 2025, and were subsequently paid in the month following the end of each respective period. | (1) $1.1 million and $2.7 million of lease liabilities were recorded within accounts payable on the Company's Consolidated Balance Sheets as of May 2, 2026 and May 3, 2025, and were subsequently paid in the month following the end of each respective period. | (1) $1.1 million and $2.7 million of lease liabilities were recorded within accounts payable on the Company's Consolidated Balance Sheets as of May 2, 2026 and May 3, 2025, and were subsequently paid in the month following the end of each respective period. |

---

**4. Earnings Per Share**

Basic earnings per share is computed based on the weighted-average number of common shares outstanding during the period. Diluted earnings per share is computed based on the weighted-average number of common shares outstanding, plus the effect of dilutive potential common shares outstanding during the period using the treasury stock method. Dilutive potential common shares represent outstanding restricted stock units.

The components of basic and diluted earnings per share were as follows (in thousands, except per share data):

---

| | | |
|:---|:---|:---|
| | **Thirteen Weeks Ended** | **Thirteen Weeks Ended** |
| | **May 2,<br>2026** | **May 3,<br>2025** |
| *Numerator:* |  |  |
| Net loss from continuing operations | $(4825) | $(18260) |
| Loss from discontinued operations, net of income tax |  | (15200) |
| &nbsp;&nbsp;&nbsp;Net loss | $(4825) | $(33460) |
| *Denominator:* |  |  |
| Weighted-average number of common shares (basic) | 28121 | 27773 |
| Dilutive effect of stock-based awards |  |  |
| Weighted-average number of common shares (diluted) | 28121 | 27773 |
| *Basic net loss per share:* |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Continuing operations | $(0.17) | $(0.66) |
| &nbsp;&nbsp;&nbsp;&nbsp;Discontinued operations | $— | $(0.54) |
| &nbsp;&nbsp;&nbsp;&nbsp;Basic net loss per share | $(0.17) | $(1.20) |
| *Diluted net loss per share:* |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Continuing operations | $(0.17) | $(0.66) |
| &nbsp;&nbsp;&nbsp;&nbsp;Discontinued operations | $— | $(0.54) |
| &nbsp;&nbsp;&nbsp;&nbsp;Diluted net loss per share | $(0.17) | $(1.20) |

---

For the thirteen weeks ended May 2, 2026 and May 3, 2025, all potential common shares were excluded from the diluted share calculation because they were anti-dilutive due to the net loss in the period.

------

**<u>[**Table of Contents**](#iab1af73559f74cba9d05199a53425229_7)</u>**

**Vera Bradley, Inc.**

**Notes to the Condensed Consolidated Financial Statements**

**(unaudited)**

**5. Fair Value of Financial Instruments**

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Assets and liabilities measured at fair value are classified using the following hierarchy, which is based upon the transparency of inputs to the valuation as of the measurement date:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Level 1 – Quoted prices in active markets for identical assets or liabilities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Level 2 – Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Level 3 – Unobservable inputs based on the Company's own assumptions.

The classification of fair value measurements within the hierarchy is based upon the lowest level of input that is significant to the measurement.

The carrying amounts reflected on the Condensed Consolidated Balance Sheets for cash and cash equivalents, accounts receivable, other current assets, and accounts payable as of May 2, 2026 and January 31, 2026, approximated their fair values.

The following table details the fair value measurements of the Company's instruments as of May 2, 2026 and January 31, 2026 (in thousands):

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Level 1** | **Level 1** | **Level 2** | **Level 2** | **Level 3** | **Level 3** |
| | **May 2, 2026** | **January 31, 2026** | **May 2, 2026** | **January 31, 2026** | **May 2, 2026** | **January 31, 2026** |
| Contingent consideration related to sale of business<sup>(1)</sup> |  |  |  |  | 1835 | 1835 |
| (1) Established during the thirteen weeks ended May 3, 2025. Refer to Note 13 herein for additional information. | (1) Established during the thirteen weeks ended May 3, 2025. Refer to Note 13 herein for additional information. | (1) Established during the thirteen weeks ended May 3, 2025. Refer to Note 13 herein for additional information. | (1) Established during the thirteen weeks ended May 3, 2025. Refer to Note 13 herein for additional information. | (1) Established during the thirteen weeks ended May 3, 2025. Refer to Note 13 herein for additional information. | (1) Established during the thirteen weeks ended May 3, 2025. Refer to Note 13 herein for additional information. | (1) Established during the thirteen weeks ended May 3, 2025. Refer to Note 13 herein for additional information. |

---

The Company assesses potential impairments to its long-lived assets, which includes property, plant, and equipment and lease right-of-use assets, on a quarterly basis or whenever events or circumstances indicate that the carrying amount of an asset may not be recoverable. Store-level assets and right-of-use assets are grouped at the individual store-level for the purpose of the impairment assessment. Recoverability of an asset group is measured by a comparison of the carrying amount of an asset group to its estimated undiscounted future cash flows expected to be generated by the asset group. If the carrying amount of the asset group exceeds its estimated undiscounted future cash flows, an impairment charge is recognized as the amount by which the carrying amount of the asset group exceeds the fair value of the asset group. The fair value of the store assets is determined using the discounted future cash flow method of anticipated cash flows through the store's lease-end date using fair value measurement inputs classified as Level 3. The fair value of right-of-use assets is estimated using market comparative information for similar properties. Level 3 inputs are derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. No impairment charges were recorded for the thirteen weeks ended May 2, 2026. There were $1.0 million impairment charges recorded for the thirteen weeks ended May 3, 2025 for store property, plant, and equipment. These charges are included in selling, general, and administrative ("SG&A") expenses in the Consolidated Statements of Operations and in impairment charges in the Consolidated Statements of Cash Flows.

On a nonrecurring basis, assets recognized or disclosed at fair value on the consolidated financial statements include items such as property, plant, and equipment, including leasehold improvements, and operating lease assets.

------

**<u>[**Table of Contents**](#iab1af73559f74cba9d05199a53425229_7)</u>**

**Vera Bradley, Inc.**

**Notes to the Condensed Consolidated Financial Statements**

**(unaudited)**

**6. Debt**

*Credit Agreement*

On September 7, 2018, Vera Bradley Designs, Inc. ("VBD"), a wholly-owned subsidiary of the Company, entered into an asset-based revolving Credit Agreement (the "Credit Agreement") among VBD, JPMorgan Chase Bank, N.A., as administrative agent, and the lenders from time to time party thereto. On March 11, 2025, certain subsidiaries of the Company, JPMorgan Chase Bank, N.A., as the administrative agent, and lenders from time to time party thereto, entered into a Fourth Amendment (the "Fourth Amendment") to the Credit Agreement dated September 7, 2018.

The Credit Agreement provides for certain credit facilities to VBD in an aggregate principal amount not to initially exceed the lesser of $75.0 million or the amount of borrowing availability determined in accordance with a borrowing base of certain assets. Any proceeds of the credit facilities will be used to finance general corporate purposes of VBD and its subsidiaries, including but not limited to Vera Bradley International, LLC, Vera Bradley Sales, LLC, and Creative Genius, LLC (collectively, the "Named Subsidiaries"). The Credit Agreement also contains an option for VBD to arrange with lenders to increase the aggregate principal amount by up to $50.0 million. The Fourth Amendment allowed for the sale of Creative Genius and irrevocably released Creative Genius from the loan documents upon completion of the sale.

Amounts outstanding under the Credit Agreement bear interest at a per annum rate equal to (i) for CBFR borrowings (including swingline loans), the CB Floating Rate, where the CB Floating Rate is the greater of the prime rate or 2.5%, plus the Applicable Rate, where the Applicable Rate is a percentage spread ranging from -1.25% to -1.50%, (ii) for each Term Benchmark Borrowing, the Adjusted Term SOFR Rate, where the Adjusted Term SOFR Rate is the Term SOFR rate for such interest period plus 0.10% for the interest period in effect for such borrowing, plus the Applicable Rate, where the Applicable Rate is a percentage ranging from 1.25% to 1.50%, or (iii) for RFR Loans, the Adjusted Daily Simple SOFR Rate, where the adjusted Daily Simple SOFR Rate is equal to the Daily Simple SOFR plus 0.10%, plus the Applicable Rate, where the Applicable Rate is a percentage ranging from 1.25% to 1.50% The applicable CB Floating Rate, Adjusted Term SOFR Rate, Term SOFR Rate, Daily Simple SOFR, and Adjusted Daily Simple SOFR shall be determined by the administrative agent. The Credit Agreement also requires VBD to pay a commitment fee for the unused portion of the revolving facility of up to 0.30% per annum.

VBD's obligations under the Credit Agreement are guaranteed by the Company and the Named Subsidiaries. The obligations of VBD under the Credit Agreement are secured by substantially all of the respective assets of VBD, the Company, and the Named Subsidiaries and are further secured by the equity interests in VBD and the Named Subsidiaries.

The Credit Agreement contains various affirmative and negative covenants, including restrictions on the Company's ability to incur debt or liens; engage in mergers or consolidations; make certain investments, acquisitions, loans, and advances; sell assets; enter into certain swap agreements; pay dividends or make distributions or make other restricted payments; engage in certain transactions with affiliates; and amend, modify, or waive any of its rights related to subordinated indebtedness and certain charter and other organizational, governing, and material agreements. The Company may avoid certain of such restrictions by meeting payment conditions defined in the Credit Agreement.

The Credit Agreement also requires the loan parties, as defined in the Credit Agreement, to maintain a minimum fixed charge coverage ratio of 1.00 to 1.00 during periods when borrowing availability is less than the greater of (A) $25.0 million, and (B) 12.5% of the lesser of (i) the aggregate revolving commitment, and (ii) the borrowing base. The fixed charge coverage ratio, availability, aggregate revolving commitment, and the borrowing base are further defined in the Credit Agreement.

The Credit Agreement contains customary events of default, including, among other things: (i) the failure to pay any principal, interest, or other fees under the Credit Agreement; (ii) the making of any materially incorrect representation or warranty; (iii) the failure to observe or perform any covenant, condition, or agreement in the Credit Agreement or related agreements; (iv) a cross default with respect to other material indebtedness; (v) bankruptcy and insolvency events; (vi) unsatisfied material final judgments; (vii) Employee Retirement Income Security Act of 1974 ("ERISA") events that could reasonably be expected to have a material adverse effect; and (viii) a change in control (as defined in the Credit Agreement).

On October 21, 2025, VBD amended the agreement to include, among other things, to: (i) permit the sale of certain real property assets without requiring the application of the proceeds from such sale to be used to repay amounts

------

**<u>[**Table of Contents**](#iab1af73559f74cba9d05199a53425229_7)</u>**

**Vera Bradley, Inc.**

**Notes to the Condensed Consolidated Financial Statements**

**(unaudited)**

outstanding under the Credit Agreement, (ii) remove the prohibition against sale and leaseback transactions and (iii) increase the amount of Company assets permitted to be disposed of in any fiscal year outside the ordinary course of business from $5,000,000 to $10,000,000.

The Credit Agreement matures in May 2028.

As of May 2, 2026 and January 31, 2026, the Company had no borrowings outstanding under its Credit Agreement and availability of $68.0 million and $58.6 million, respectively. Availability under the Credit Agreement is driven by a borrowing base comprised primarily of eligible accounts receivable and inventory, each subject to advance rates, eligibility criteria, and applicable reserves. As a result, borrowing capacity may fluctuate based on the level and quality of receivables and the composition and valuation of inventory.

**7. Income Taxes**

The provision for income taxes for interim periods is based on an estimate of the annual effective tax rate adjusted to reflect the impact of discrete items. Management judgment is required in projecting ordinary income to estimate the Company's annual effective tax rate.

The effective tax rate for the thirteen weeks ended May 2, 2026, was (2.4)%, compared to (2.3)% for the thirteen weeks ended May 3, 2025.

Refer to Note 13 herein for the information regarding the income tax impact associated with the sale of Pura Vida on March 31, 2025.

On July 4, 2025, the One Big Beautiful Bill Act ("OBBBA") was signed into law, making permanent certain provisions of the Tax Cuts and Jobs Act, including 100% bonus depreciation, domestic research cost expensing, and the business interest expense limitation. In accordance with ASC 740, the Company has recognized the effects of the new tax law in fiscal 2026. As the Company maintains a full valuation allowance on its U.S. deferred tax assets, the legislation does not have a material impact on our consolidated financial statements.

**8. Stock-Based Compensation**

The Company recognizes stock-based compensation expense, for its awards of restricted stock units, in an amount equal to the fair market value of the underlying stock on the grant date of the respective award.

The Company reserved 6,000,000 shares of common stock for issuance or transfer under the 2020 Equity and Incentive Plan, as amended, which allows for grants of restricted stock units, as well as other equity awards. The Company maintains the 2010 Equity and Incentive Plan for awards granted prior to the effectiveness of the 2020 Equity and Incentive Plan.

Subsequent to May 2, 2026, the Company's stockholders approved an amendment to the Company's 2020 Equity and Incentive Plan to increase the number of shares of common stock authorized for issuance thereunder by 3,000,000 shares.

*Executive Short-Term Incentive Plan*

During the thirteen weeks ended May 2, 2026, the Company initiated a new executive short-term incentive plan that provides for settlement in both equity and cash based on the achievement of certain performance objectives. Awards earned at or below 100% of target are settled entirely in shares of the Company's common stock. For awards earned in excess of 100% of target, the portion up to 100% of target is settled in shares of the Company's common stock, with any excess amount settled in cash. Shares issued under the plan vest immediately upon grant.

The portion of awards that is settled in shares of the Company's common stock results in a variable number of shares based on achievement of Company performance metrics. Accordingly, this portion of the awards is accounted for as liability-classified share-based awards.

Under the previous executive short-term incentive plan in the prior-year period, all incentive compensation was paid solely in cash.

------

**<u>[**Table of Contents**](#iab1af73559f74cba9d05199a53425229_7)</u>**

**Vera Bradley, Inc.**

**Notes to the Condensed Consolidated Financial Statements**

**(unaudited)**

*Awards of Restricted Stock Units* 

During the thirteen weeks ended May 2, 2026, the Company granted 1,347,047 time-based and performance-based restricted stock units with an aggregate fair value of $4.6 million to certain employees and non-employee directors under the 2020 Equity and Incentive Plan, compared to 1,503,502 time-based and performance-based restricted stock units with an aggregate fair value of $3.2 million in the same period of the prior year.

Time-based restricted stock units vest and settle in shares of the Company's common stock, on a one-for-one basis, with most vesting in equal installments on each of the first three anniversaries of the grant date. Restricted stock units issued to non-employee directors vest after a one-year period from the grant date. The Company recognizes the expense relating to these units, net of estimated forfeitures, on a straight-line basis over the vesting period.

Performance-based restricted stock units vest upon the completion of a three-year period of time (cliff vesting), subject to the employee's continuing employment throughout and the Company's achievement of annual earnings per share targets, or other Company performance targets, during the three-year performance period. The Company recognizes the expense relating to these units, net of estimated forfeitures, based on the probable outcome of achievement of the financial targets, on a straight-line basis over three years.

The following table sets forth a summary of restricted stock unit activity for the thirteen weeks ended May 2, 2026 (units in thousands):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Time-based<br>Restricted Stock Units** | **Time-based<br>Restricted Stock Units** | **Performance-based<br>Restricted Stock Units** | **Performance-based<br>Restricted Stock Units** |
| | **Number of<br>Units** | **Weighted-<br>Average<br>Grant Date<br>Fair Value<br>(per unit)** | **Number of<br>Units** | **Weighted-<br>Average<br>Grant Date<br>Fair Value<br>(per unit)** |
| Nonvested units outstanding at January 31, 2026 | 2383 | $2.28 | 215 | $5.26 |
| Granted | 823 | 3.39 | 524 | 3.39 |
| Vested | (444) | 2.77 | (164) | 4.76 |
| Forfeited | (143) | 2.57 | (67) | 3.51 |
| Nonvested units outstanding at May 2, 2026 | 2619 | $2.53 | 508 | $3.73 |

---

As of May 2, 2026, there was $6.5 million of total unrecognized compensation cost, net of estimated forfeitures, related to nonvested restricted stock units. That cost is expected to be recognized over a weighted-average period of 2.4 years, subject to meeting performance conditions.

------

**<u>[**Table of Contents**](#iab1af73559f74cba9d05199a53425229_7)</u>**

**Vera Bradley, Inc.**

**Notes to the Condensed Consolidated Financial Statements**

**(unaudited)**

**9. Commitments and Contingencies**

The Company is subject to various claims and contingencies arising in the normal course of business, including those relating to product liability, legal claims, employee benefits, environmental issues, and other matters. Management believes that at this time it is not probable that any of these claims will have a material adverse effect on the Company's financial condition, results of operations, or cash flows. However, the outcomes of legal proceedings and claims brought against the Company are subject to uncertainty, and future developments could cause these actions or claims, individually or in aggregate, to have a material adverse effect on the Company's financial condition, results of operations, or cash flows of a particular reporting period.

In June of 2025, the Company received a notice from the buyer of Creative Genius requesting a purchase price adjustment of approximately $4.6 million related to the sale of Creative Genius. The demand was based on certain working capital adjustments. The Company has disputed this purchase price adjustment request. On August 27, 2025, the Company filed an action in the Chancery Court of Delaware seeking a judgment declaring that the buyer's claim for a purchase price adjustment is improper and barred by the purchase Agreement. The Company has filed for summary judgment in that action. At this time, we are not able to estimate a possible loss or range of loss that may result from this matter or to determine whether such loss, if any, would have a material adverse effect on our financial condition or results of operations due to the fact that the Company believes the purchase price adjustment is improper, and is seeking to have it declared as such by a Delaware Court. The Company believes that it has a number of meritorious legal approaches in defending itself against these claims.

The Company is also subject to other legal proceedings from time to time in the ordinary course of business but does not believe any of these such claims would have a material adverse impact on the Company at this time.

&nbsp;&nbsp;&nbsp;&nbsp;

**10. Common Stock**

During the fourth quarter fiscal 2025, the Company's board of directors approved a new share repurchase plan (the "2024 Share Repurchase Program") which authorized Company management to utilize up to $30.0 million of available cash for repurchases of shares of the Company's common stock. The 2024 Share Repurchase Program went into effect beginning December 14, 2024 and expires in December 2027. The Company does not currently plan to purchase under the 2024 Share Repurchase Program, but anticipates utilizing it in the future depending on the Company's cash position.

As of May 2, 2026, there was $30.0 million remaining available to repurchase shares of the Company's common stock under the 2024 Share Repurchase Program.

As of May 2, 2026, the Company held as treasury shares 15,834,579 shares of its common stock at an average price of $9.90 per share, excluding commissions, for an aggregate carrying amount of $156.8 million. The Company's treasury shares may be issued under the 2010 Equity and Incentive Plan (with respect to outstanding awards under that plan), under the 2020 Equity and Incentive Plan, or for other corporate purposes.

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**<u>[**Table of Contents**](#iab1af73559f74cba9d05199a53425229_7)</u>**

**Vera Bradley, Inc.**

**Notes to the Condensed Consolidated Financial Statements**

**(unaudited)**

**11. Cost Savings Initiatives and Other Charges**

*Cost Savings Initiatives and Severance Charges*

During fiscal 2023, the Company began implementation of its targeted cost reductions, which were expected to be fully realized in fiscal 2025. In late fiscal 2025, additional cost optimization initiatives were identified and are expected to be fully realized in fiscal 2027. Expense savings are being derived across various areas of the Company, including retail store efficiencies, marketing expenses, information technology contracts, professional services, logistics and operational costs, and corporate payroll.

The Company incurred the following charges during the thirteen weeks ended May 2, 2026 (in thousands):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Reportable Segment** | **Reportable Segment** | | |
| | **Direct** | **Indirect** |<br>**Unallocated Corporate Expenses** |<br>**Total Expense** |
| Severance charges | $334 | $117 | $666 | $1117 |
| Total <sup>(1)</sup> | $334 | $117 | $666 | $1117 |
| (1) Recorded within selling, general, and administrative ("SG&A") expenses | (1) Recorded within selling, general, and administrative ("SG&A") expenses | (1) Recorded within selling, general, and administrative ("SG&A") expenses | (1) Recorded within selling, general, and administrative ("SG&A") expenses | (1) Recorded within selling, general, and administrative ("SG&A") expenses |

---

A summary of charges and related liabilities associated with the cost savings initiatives and severance charges are as follows (in thousands):

---

| | |
|:---|:---|
| | **Severance Charges and Cash Retention Payment Acceleration Charges** <sup>(1)</sup> |
| Liability as of January 31, 2026 | $744 |
| Fiscal 2027 charges | 1117 |
| Cash payments | (522) |
| Liability as of May 2, 2026<sup>(1)</sup> | $1339 |
| (1) Remaining liability is recorded within accrued employment costs | (1) Remaining liability is recorded within accrued employment costs |

---

The Company incurred the following charges during the thirteen weeks ended May 3, 2025 (in thousands):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Reportable Segment** | **Reportable Segment** | | |
| | **Direct** | **Indirect** |<br>**Unallocated Corporate Expenses** |<br>**Total Expense** |
| Severance charges | $15 | $— | $275 | $290 |
| Total <sup>(1)</sup> | $15 | $— | $275 | $290 |
| (1) Recorded within SG&A expenses | (1) Recorded within SG&A expenses | (1) Recorded within SG&A expenses | (1) Recorded within SG&A expenses | (1) Recorded within SG&A expenses |

---

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**<u>[**Table of Contents**](#iab1af73559f74cba9d05199a53425229_7)</u>**

**Vera Bradley, Inc.**

**Notes to the Condensed Consolidated Financial Statements**

**(unaudited)**

A summary of charges and related liabilities associated with the cost savings initiatives and severance charges are as follows (in thousands):

---

| | |
|:---|:---|
| | **Severance Charges and Cash Retention Payment Acceleration Charges** <sup>(1)</sup> |
| Liability as of February 1, 2025 | $2525 |
| Fiscal 2026 charges | 290 |
| Cash payments | (2230) |
| Liability as of May 3, 2025<sup>(1)</sup> | $585 |
| (1) Remaining liability is recorded within accrued employment costs | (1) Remaining liability is recorded within accrued employment costs |

---

**12. Segment Reporting**

The Company has two operating segments, which are also its reportable segments: Direct and Indirect. During the thirteen weeks ended May 3, 2025, the Company completed the sale of its wholly owned subsidiary, Creative Genius, also referred to as Pura Vida which was the Company's third reporting segment. Refer to Note 13 for additional information. These operating segments are components of the Company for which separate financial information is available and for which operating results are evaluated on a regular basis by the chief operating decision maker ("CODM") in deciding how to allocate resources and in assessing the performance of the segments. The Company's CODM is our Chief Executive Officer & Chairman.

The Direct segment includes Vera Bradley full-line and outlet stores; e-commerce sites (verabradley.com, verabradleyoutlet.com, and international.verabradley.com); direct to consumer marketplaces; and typically the Vera Bradley annual outlet sale. Revenues generated from this segment are driven through the sale of Vera Bradley-branded products from Vera Bradley to end consumers.

The Indirect segment represents revenues generated through the distribution of Vera Bradley-branded products to specialty retailers representing approximately 1,200 locations, substantially all of which are located in the United States; key accounts, which include department stores, national accounts, and third-party inventory liquidators; and royalties recognized through licensing agreements related to the Vera Bradley brand.

Corporate costs represent the Company's administrative expenses, which include, but are not limited to: human resources, legal, finance, information technology, design, product development, merchandising, corporate-level marketing and advertising, and various other corporate-level-activity-related expenses not directly attributable to a reportable segment. Income earned under the Transition Services Agreement ("TSA") resulting from the sale of Creative Genius is netted against these unallocated corporate expenses. All intercompany-related activities are eliminated in consolidation and are excluded from the segment reporting.

The CODM's primary or key performance indicator for evaluating segment operating results is operating income. The CODM uses operating income for each segment predominantly in the annual budget and forecasting process. The CODM considers budget-to-actual variances on a quarterly basis for this key performance operating measure when making decisions about the allocation of operating and capital resources to each segment. The CODM also uses segment operating income to assess the performance of each segment by comparing the results of each segment with one another and in determining the compensation of certain employees. The CODM reviews cost of sales and SG&A expense on a consolidated basis.

The accounting policies of the segments are the same as those described in Note 2. The Company does not report depreciation or amortization expense, total assets, or capital expenditures by segment as such information is neither used by management nor accounted for at the segment level.

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**<u>[**Table of Contents**](#iab1af73559f74cba9d05199a53425229_7)</u>**

**Vera Bradley, Inc.**

**Notes to the Condensed Consolidated Financial Statements**

**(unaudited)**

Net revenues, cost of sales, other segment expenses, and operating income information for the Company's reportable segments, as well as a reconciliation to loss from continuing operations before income taxes during the thirteen weeks ended May 2, 2026 and May 3, 2025, respectively, consisted of the following (in thousands):

---

| | | |
|:---|:---|:---|
| | **Thirteen Weeks Ended** | **Thirteen Weeks Ended** |
| | **May 2,<br>2026** | **May 3,<br>2025** |
| Segment net revenues: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Direct | $44853 | $43083 |
| &nbsp;&nbsp;&nbsp;&nbsp;Indirect | 10849 | 8569 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | $55702 | $51652 |
| Segment cost of sales: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Direct | $21272 | $23877 |
| &nbsp;&nbsp;&nbsp;&nbsp;Indirect | 5599 | 5008 |
| Total | $26871 | $28885 |
| Other segment expenses, net <sup>(1)</sup> |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Direct | $20474 | $24742 |
| &nbsp;&nbsp;&nbsp;&nbsp;Indirect | 1241 | 1581 |
| Total | $21715 | $26323 |
| Segment operating income (loss): |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Direct | $3107 | $(5536) |
| &nbsp;&nbsp;&nbsp;&nbsp;Indirect | 4009 | 1980 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | $7116 | $(3556) |
| Reconciliation: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Segment operating income (loss): | $7116 | $(3556) |
| &nbsp;&nbsp;&nbsp;&nbsp;Unallocated corporate expenses | $(11764) | $(14301) |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest (expense) income | (65) | 4 |
| Loss from continuing operations before income taxes | $(4713) | $(17853) |
| (1) Other segment expenses, net include SG&A expenses and are net of other income. | (1) Other segment expenses, net include SG&A expenses and are net of other income. | (1) Other segment expenses, net include SG&A expenses and are net of other income. |

---

**13. Discontinued Operations**

On March 11, 2025, the Company completed the sale of Creative Genius pursuant to an Interest Purchase Agreement (the "Agreement") to sell one hundred percent (100%) of Creative Genius, which operates under the name Pura Vida Bracelets. The sale consummated on March 31, 2025. In connection with the transaction, the Company received total consideration of $3.5 million, consisting of a combination of cash consideration, subject to net working capital and net cash adjustments, as well as contingent consideration.

At closing, the Company received cash proceeds of $0.9 million, in addition, the Company is entitled to receive contingent consideration with an estimated fair value of $2.5 million, based on the present value of expected future payments. The remaining contingent consideration receivable was $1.8 million as of May 2, 2026. The contingent consideration is calculated as 5% of total sales generated by the divested business, as operated by the buyer, net of customary shipping costs, during the earn-out period specified in the agreement. The earn-out period and related terms are consistent with customary provisions for transactions of this nature. The fair value of the contingent consideration was determined using a probability-weighted discounted cash flow analysis based on internal projections of the

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**<u>[**Table of Contents**](#iab1af73559f74cba9d05199a53425229_7)</u>**

**Vera Bradley, Inc.**

**Notes to the Condensed Consolidated Financial Statements**

**(unaudited)**

buyer's expected future sales. The fair value measurement is classified as Level 3 within the fair value hierarchy due to the use of unobservable inputs.

The Company will assess changes in the fair value of the contingent consideration at each reporting date, with any adjustments recognized in earnings in the period in which such changes are identified.

The Company recorded a net loss on disposal of $15.2 million for the thirteen weeks ended May 3, 2025. The loss on sale is presented as part of results of the discontinued operations.

The results of operations for the Pura Vida business is reported as discontinued operations in the Consolidated Statements of Operations for all periods presented in this Form 10-Q. This business was historically presented as its own reportable segment.

Results of discontinued operations were as follows for the thirteen weeks ended May 2, 2026 and May 3, 2025:

---

| | | |
|:---|:---|:---|
| | **Thirteen Weeks Ended** | **Thirteen Weeks Ended** |
| | **May 2,<br>2026** | **May 3,<br>2025** |
| Net revenues | $— | $5553 |
| Cost of sales |  | 2167 |
| &nbsp;&nbsp;&nbsp;&nbsp;Gross profit |  | 3386 |
| Selling, general, and administrative expenses |  | 3244 |
| Other expense, net <sup>(1)</sup> |  | (15342) |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating loss from discontinued operations |  | (15200) |
| Interest income, net |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Loss from discontinued operations before income taxes |  | (15200) |
| Income tax expense |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Loss from discontinued operations |  | (15200) |
| (1) Includes $15.2 million loss on sale of discontinued operations recorded during the thirteen weeks ended May 3, 2025. | (1) Includes $15.2 million loss on sale of discontinued operations recorded during the thirteen weeks ended May 3, 2025. | (1) Includes $15.2 million loss on sale of discontinued operations recorded during the thirteen weeks ended May 3, 2025. |

---

The Company provides certain transition services to support the divested business in accordance with the Interest Purchase Agreement.

The following table presents cash flows from operating and investing activities for discontinued operations for the thirteen weeks ended May 2, 2026 and May 3, 2025:

---

| | | |
|:---|:---|:---|
| | **Thirteen Weeks Ended** | **Thirteen Weeks Ended** |
| | **May 2,<br>2026** | **May 3,<br>2025** |
| Cash used in operating activities - discontinued operations | $— | $(2115) |
| Cash provided by investing activities - discontinued operations |  | 2 |

---

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**<u>[**Table of Contents**](#iab1af73559f74cba9d05199a53425229_7)</u>**

**ITEM 2.&nbsp;&nbsp;&nbsp;&nbsp;MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS**

The following discussion summarizes the significant factors affecting the condensed consolidated operating results, financial condition, liquidity, and cash flows of the Company as of and for the thirteen weeks ended May 2, 2026 and May 3, 2025. The following discussion should be read in conjunction with our Annual Report on Form 10-K for the fiscal year ended January 31, 2026, and our unaudited condensed consolidated financial statements and the related notes included in Item 1 of this Quarterly Report. The results of operations for the thirteen weeks ended May 2, 2026, are not necessarily indicative of the results to be expected for the full fiscal year.

**Strategic Progress, Macroeconomic Factors, and Other Factors Impacting our Financial Condition and Results of Operations**

*Strategic Progress.* We are continuing execution of Project Sunshine, a comprehensive strategy to strengthen our market position by tapping into our brand's strong emotional connection with consumers. We are simplifying decision-making, removing organizational complexity, and focusing resources on high-impact initiatives. This operational focus, paired with prudent cost management, will allow us to invest in the brand, innovation, and customer experiences, all while driving shareholder value. These improvements are about agility — building a responsive organization to fully leverage our unique brand position.

The five key initiatives of Project Sunshine are:

<u>Sharpening Our Brand Focus</u>: We are restoring Vera Bradley's distinctive, joyful brand positioning by strengthening product, emphasis on social-first marketing, storytelling, and partnering selectively across wholesale and IP to rebuild relevance and demand.

<u>Resetting Our Go-to-Market Model</u>: We are rebuilding our commercial engine with sharper hero product focus, disciplined pricing and promotions, improved inventory planning, and integrated, insight-led execution across channels.

<u>Rewiring the Digital Ecosystem</u>: We are integrating our digital commerce platforms to create a seamless customer journey, supported by enhanced site functionality, data-driven decisions, and improved conversion and profitability.

<u>Outlet 2.0</u>: We are transforming our outlet channel from discount driven to a curated, brand-building smart-value experience that is delivering higher sales, conversion, and profitability.

<u>Reimagining How We Work</u>: We are streamlining the organization while investing in critical talent and capabilities to create a more agile, future-fit company positioned for sustainable long-term growth.

*Macroeconomic and Other Factors.* We continue to closely monitor the dynamic economic landscape and are actively managing the impact of changing tariff costs. While ongoing inflationary pressures and related macroeconomic factors continue to influence consumer discretionary spending, our business has demonstrated resilience to start the fiscal year. We delivered a strong start to fiscal 2027 and remain focused on executing our strategic initiatives and adapting to current market conditions to support sustained long-term growth.

**Management Transition**

In June 2025, the Company announced the departure of its former Chief Executive Officer ("CEO"), Jacqueline Ardrey. In March 2026, Board member Ian Bickley was appointed permanent CEO and Executive Chairman after serving as our Interim CEO since July 2025. Martin Layding was named Chief Financial Officer in June 2025 and was promoted to also serve as the Chief Operating Officer in March 2026.

**Recent Transactions**

The sale of Pura Vida was completed on March 31, 2025. See Note 13 to the Notes to the Condensed Consolidated Financial Statements herein for additional information. The loss on sale was presented as part of results of the discontinued operations. We have reflected the results of operations of the Pura Vida business as discontinued operations in the Consolidated Statement of Operations. This business was historically presented as its own reporting unit.

**How We Assess the Performance of Our Business**

In assessing the performance of our business, we consider a variety of performance and financial measures.

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**<u>[**Table of Contents**](#iab1af73559f74cba9d05199a53425229_7)</u>**

*Net Revenues*

Net revenues reflect sales of our merchandise and revenue from distribution and shipping and handling fees, less returns and discounts. Revenues for the Direct segment reflect sales through full-line and outlet stores; e-commerce sites (verabradley.com, verabradleyoutlet.com, and international.verabradley.com); direct to consumer marketplaces; and typically the Vera Bradley annual outlet sale. Revenues for the Indirect segment reflect sales of Vera Bradley-branded products to specialty retail partners; key accounts consisting of department stores, national accounts, and third-party inventory liquidators; and royalties recognized through licensing agreements related to the Vera Bradley brand.

*Comparable Sales*

Comparable sales are calculated based upon our stores that have been open for at least 12 full fiscal months and net revenues from our e-commerce operations. Remodeled stores are included in both comparable sales and comparable store sales unless the store was closed for more than one week of the current or comparable prior period, in which case the non-comparable temporary closure periods are not included, or the remodel resulted in a significant change in square footage. Some of our competitors and other retailers calculate comparable or "same store" sales differently than we do. As a result, data in this report regarding our comparable sales and comparable store sales may not be comparable to similar data made available by other companies. Non-comparable sales include sales from stores not included in comparable sales or comparable store sales.

Measuring the change in year-over-year comparable sales allows us and our investors to evaluate how our store base and e-commerce operations are performing. Various factors affect our comparable sales, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Overall economic trends;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Consumer preferences and fashion trends;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Competition;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The timing of our releases of new patterns and collections;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Changes in our product mix;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Pricing, as well as timing and level of promotions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Amount of store, mall, and e-commerce traffic;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The level of customer service that we provide in stores and to our on-line customers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our ability to source and distribute products efficiently;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The number of stores we open and close in any period; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The timing and success of promotional and marketing efforts.

*Gross Profit*

Gross profit is equal to our net revenues less our cost of sales. Cost of sales includes the direct cost of purchased merchandise, distribution center costs, operations overhead, duties, all inbound freight costs incurred, and inventory adjustments, if any. The components of our reported cost of sales may not be comparable to those of other retail and wholesale companies.

Gross profit can be impacted by changes in volume; fluctuations in sales price; inbound freight and other logistical costs; outbound freight; operational efficiencies, such as leveraging of fixed costs; promotional activities, including free shipping; commodity prices, such as for cotton; tariffs; and labor costs.

*Selling, General, and Administrative Expenses ("SG&A")*

SG&A expenses include selling; advertising, marketing, and product development; and administrative expenses. Selling expenses include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Direct business expenses, such as store expenses, employee compensation, and store occupancy and supply costs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Indirect business expenses consisting primarily of employee compensation and other expenses associated with sales to Indirect retailers; and

Advertising, marketing, and product development expenses include employee compensation, media costs, creative production expenses, marketing agency fees, new product design costs, public relations expenses, and market research expenses. Administrative expenses include employee compensation for corporate functions, corporate headquarters occupancy costs, consulting and software expenses, and charitable donations, as well as severance charges and consulting fees associated with cost savings initiatives disclosed in Note 11 to the Notes to the Condensed Consolidated Financial Statements herein.

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**<u>[**Table of Contents**](#iab1af73559f74cba9d05199a53425229_7)</u>**

**Results of Operations**

The following tables summarize key components of our condensed consolidated results of operations for the periods indicated, both in dollars and as a percentage of our net revenues ($ in thousands):

---

| | | |
|:---|:---|:---|
| | **Thirteen Weeks Ended** | **Thirteen Weeks Ended** |
| | **May 2,<br>2026** | **May 3,<br>2025** |
| **Statement of Operations Data:** | | |
| Net revenues | $55702 | $51652 |
| Cost of sales | 26871 | 28885 |
| &nbsp;&nbsp;&nbsp;&nbsp;Gross profit | 28831 | 22767 |
| Selling, general, and administrative expenses | 34128 | 40804 |
| Other income, net | 649 | 180 |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating loss from continuing operations | (4648) | (17857) |
| Interest (expense) income, net | (65) | 4 |
| &nbsp;&nbsp;&nbsp;&nbsp;Loss from continuing operations before income taxes | (4713) | (17853) |
| Income tax expense | 112 | 407 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net loss from continuing operations | $(4825) | $(18260) |
| **Percentage of Net Revenues:** |  |  |
| Net revenues | 100.0% | 100.0% |
| Cost of sales | 48.2% | 55.9% |
| &nbsp;&nbsp;&nbsp;&nbsp;Gross profit | 51.8% | 44.1% |
| Selling, general, and administrative expenses | 61.3% | 79.0% |
| Other income, net | 1.2% | 0.3% |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating loss from continuing operations | (8.3)% | (34.6)% |
| Interest (expense) income, net | (0.1)% | —% |
| &nbsp;&nbsp;&nbsp;&nbsp;Loss from continuing operations before income taxes | (8.4)% | (34.6)% |
| Income tax expense | 0.2% | 0.8% |
| &nbsp;&nbsp;&nbsp;&nbsp;Net loss from continuing operations | (8.6)% | (35.4)% |

---

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**<u>[**Table of Contents**](#iab1af73559f74cba9d05199a53425229_7)</u>**

The following tables present net revenues and operating income (loss) by operating segment, both in dollars and as a percentage of associated net revenues, and store data for the periods indicated ($ in thousands, except as otherwise indicated):

---

| | | |
|:---|:---|:---|
| | **Thirteen Weeks Ended** | **Thirteen Weeks Ended** |
| | **May 2,<br>2026** | **May 3,<br>2025** |
| **Net Revenues by Segment:** | | |
| Direct | $44853 | $43083 |
| Indirect | 10849 | 8569 |
| Total | $55702 | $51652 |
| **Percentage of Net Revenues by Segment:** |  |  |
| Direct | 80.5% | 83.4% |
| Indirect | 19.5% | 16.6% |
| Total | 100.0% | 100.0% |

---

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| | | |
|:---|:---|:---|
| | **Thirteen Weeks Ended** | **Thirteen Weeks Ended** |
| | **May 2,<br>2026** | **May 3,<br>2025** |
| **Operating Income (Loss) by Segment:** | | |
| Direct | $3107 | $(5536) |
| Indirect | 4009 | 1980 |
| Less: Corporate unallocated | (11764) | (14301) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | $(4648) | $(17857) |
| **Operating Income (Loss) as a Percentage of Net Revenues by Segment:** |  |  |
| Direct | 6.9% | (12.8)% |
| Indirect | 37.0% | 23.1% |
| **Vera Bradley Store Data** <sup>(1)</sup>**:** |  |  |
| Total stores opened during period |  | 2 |
| Total stores closed during period | (3) | (2) |
| Total stores open at end of period | 112 | 126 |
| Total gross square footage at end of period | 354709 | 386091 |
| Average net revenues per gross square foot <sup>(2)</sup> | $65 | $58 |
| Comparable sales (including e-commerce) increase (decrease) <sup>(3)</sup> | 13.4% | (25.0)% |

---

(1)Includes Vera Bradley full-line and outlet stores.

(2)Dollars not in thousands. Average net revenues per gross square foot are calculated by dividing total net revenues for our stores that have been open at least 12 full fiscal months as of the end of the period by total gross square footage for those stores. Remodeled stores are included in average net revenues per gross square foot unless the store was closed for a portion of the period.

(3)Comparable sales are calculated based upon stores that have been open for at least 12 full fiscal months and net revenues from e-commerce operations. Comparable sales increase (decrease) is reported as a percentage of the comparable sales for the same period in the prior fiscal year. Remodeled stores are included in comparable sales unless the store was closed for a portion of the current or comparable prior period, in which case the non-comparable temporary closure periods are not included, or the remodel resulted in a significant change in square footage.

**Thirteen Weeks Ended May 2, 2026, Compared to Thirteen Weeks Ended May 3, 2025** 

*Net Revenues*

For the thirteen weeks ended May 2, 2026, net revenues increased $4.0 million, or 7.8%, to $55.7 million, from $51.7 million in the comparable prior-year period.

*Direct*. For the thirteen weeks ended May 2, 2026, net revenues in the Direct segment increased $1.8 million, or 4.1%, to $44.9 million, from $43.1 million in the comparable prior-year period. Vera Bradley comparable sales increased 13.4%, which includes an 11.6% increase in comparable store sales as well as an increase in e-commerce sales of 15.5%. In addition, non-

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comparable revenue decreased $3.5 million, primarily attributable to not hosting the Vera Bradley annual outlet sale in the current year period. The increase in comparable sales and comparable store sales was primarily due to improved e-commerce conversion and average ticket price, as well as increased traffic in outlet and full-line stores.

*Indirect*. For the thirteen weeks ended May 2, 2026, net revenues in the Indirect segment increased $2.3 million, or 26.6%, to $10.8 million, from $8.6 million in the comparable prior-year period. The increase was primarily due to improvement in specialty and department stores, while cut-to-order sales enabled continued growth across key accounts.

*Gross Profit* 

For the thirteen weeks ended May 2, 2026, gross profit increased $6.0 million, or 26.6%, to $28.8 million, from $22.8 million in the comparable prior-year period. As a percentage of net revenues, gross profit increased to 51.8% for the thirteen weeks ended May 2, 2026, from 44.1% in the comparable prior-year period. The year over year margin rate improvement was driven by favorable sales mix and lower freight and duty costs in the current year period, as well as reduction in costs related to inventory write-offs associated with the sale of Pura Vida, purchase order cancellation fees, and professional fees in the prior-year period.

*Selling, General, and Administrative Expenses*

For the thirteen weeks ended May 2, 2026, SG&A expenses decreased $6.7 million, or 16.4%, to $34.1 million, from $40.8 million in the comparable prior-year period. As a percentage of net revenues, SG&A expenses decreased to 61.3% for the thirteen weeks ended May 2, 2026, from 79.0% in the comparable prior-year period. For the thirteen weeks ended May 2, 2026, consolidated SG&A expenses decreased primarily due to a $2.9 million reduction in advertising costs, driven by cost optimization efforts including reduction and phasing of advertising spend throughout the year; a $1.3 million reduction in building expenses resulting from store closures and favorable lease negotiations; $1.0 property, plant, & equipment charges in the prior-year period that did not recur in the current year period; a $0.7 million reduction in employee-related costs, including reduced headcount, partially offset by an increase in variable compensation; a $0.3 million reduction in professional fees; and a $0.5 million reduction in net other expenses.

*Other Income, Net*

For the thirteen weeks ended May 2, 2026, net other income increased $0.4 million to $0.6 million, from $0.2 million in the comparable prior-year period. The increase in net other income was primarily due to income from the TSA resulting from the sale of Creative Genius.

*Operating Loss from Continuing Operations*

For the thirteen weeks ended May 2, 2026, operating loss from continuing operations decreased $13.3 million, or 74.0%, to $(4.6) million, from $(17.9) million in the comparable prior-year period. As a percentage of net revenues, operating loss from continuing operations was (8.3)% and (34.6)% for the thirteen weeks ended May 2, 2026 and May 3, 2025, respectively. Operating loss from continuing operations decreased due to the factors described above.

*Direct*. For the thirteen weeks ended May 2, 2026, operating income in the Direct segment increased $8.6 million, or 156.1%, to $3.1 million, from an operating loss of $(5.5) million in the comparable prior-year period. As a percentage of Direct segment net revenues, operating income (loss) in the Direct segment was 6.9% and (12.8)% for the thirteen weeks ended May 2, 2026 and May 3, 2025, respectively. The increase in operating income as a percentage of Direct segment net revenues was primarily due to an increase in gross margin as a percentage of net revenues as described above, expense reductions of $1.6 million in advertising costs and $1.1 million in building expenses resulting from store closures and favorable lease negotiations, the absence of $1.0 million of property, plant, and equipment impairment charges recognized in the prior-year period, as well as improved leverage of SG&A expenses.

*Indirect*. For the thirteen weeks ended May 2, 2026, operating income in the Indirect segment increased $2.0 million, or 102.5%, to $4.0 million from $2.0 million in the comparable prior-year period. As a percentage of Indirect segment net revenues, operating income in the Indirect segment was 37.0% and 23.1% for the thirteen weeks ended May 2, 2026 and May 3, 2025, respectively. The increase in operating income as a percentage of Indirect segment net revenues was due to an increase in gross margin as a percentage of net revenues as well as improved leverage of SG&A expenses.

*Unallocated*. For the thirteen weeks ended May 2, 2026, unallocated expenses decreased $2.5 million, or 17.7%, to $11.8 million from $14.3 million in the comparable prior-year period. The decrease in unallocated expenses was primarily due to a $1.0 million decrease in advertising expenses, a $0.5 million reduction in professional fees, and a $0.4 million reduction in employee-related costs, partially offset by a $0.6 million increase in net other expenses.

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*Interest (Expense) Income, Net*

For the thirteen weeks ended May 2, 2026, interest expense increased $0.1 million, to $(0.1) million from interest income of $4.0 thousand in the comparable prior-year period.

*Income Tax Expense*

The effective tax rate for the thirteen weeks ended May 2, 2026, was (2.4)%, compared to (2.3)% for the thirteen weeks ended May 3, 2025. See Note 7 "Income Taxes" of the Notes to the Condensed Consolidated Financial Statements for additional information about the Company's interim provision for income taxes.

*Net Loss from Continuing Operations*

For the thirteen weeks ended May 2, 2026, there was a net loss from continuing operations of $(4.8) million, a $13.5 million decrease, from $(18.3) million in the comparable prior-year period due to the factors described above.

**Liquidity and Capital Resources**

*General*

Our primary sources of liquidity are cash on hand and cash equivalents, as well as cash flow from operations. We also have access to additional liquidity, if needed, through borrowings under our $75.0 million asset-based revolving credit agreement (the "Credit Agreement"). Availability under the Credit Agreement is driven by a borrowing base comprised primarily of eligible accounts receivable and inventory, each subject to advance rates, eligibility criteria, and applicable reserves. As a result, borrowing capacity may fluctuate based on the level and quality of receivables and the composition and valuation of inventory. There was no debt outstanding under the Credit Agreement as of May 2, 2026. The Company also owns two real estate properties that are unencumbered, which provide additional financial flexibility and may serve as a potential source of liquidity or collateral if needed. Historically, our primary cash needs have been for merchandise inventories; payroll; store rent; capital expenditures associated with operational equipment, buildings, information technology, and opening new stores; and share repurchases. The most significant components of our working capital are cash and cash equivalents, merchandise inventories, accounts receivable, accounts payable, and other current liabilities.

We believe that cash on hand and cash equivalents, cash flows from operating activities, and the availability of borrowings under our Credit Agreement or other financing arrangements will be sufficient to meet working capital requirements and anticipated capital expenditures, and other strategic uses of cash, if any, for the foreseeable future.

*Cash Flow Analysis*

A summary of operating, investing, and financing activities is shown in the following table (in thousands):

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| | | |
|:---|:---|:---|
| | **Thirteen Weeks Ended** | **Thirteen Weeks Ended** |
| | **May 2,<br>2026** | **May 3,<br>2025** |
| Net cash used in operating activities | $(5250) | $(17902) |
| Net cash used in investing activities | (333) | (968) |
| Net cash used in financing activities | (412) | (171) |

---

*Net Cash Used in Operating Activities*

Net cash used in operating activities consists primarily of net loss adjusted for non-cash items, including depreciation, amortization, impairment charges, deferred taxes, and stock-based compensation; and the effect of changes in assets and liabilities.

Net cash used in operating activities for the thirteen weeks ended May 2, 2026 was $5.3 million, compared to $17.9 million for the thirteen weeks ended May 3, 2025. The decrease in cash used in operating activities was primarily attributable to a net loss of $(4.8) million, a $28.6 million improvement, from the comparable prior-year period, net of the $15.2 million loss on sale of business recognized in the prior-year period. Operating cash flows also benefited from continued inventory management initiatives, which resulted in a $2.9 million source of cash from inventories during the current year period compared to a $7.4 million use of cash in the prior-year period. These favorable impacts were partially offset by changes in accounts payable and accrued liabilities, which represented a $5.2 million net use of cash in the current year period, primarily attributable to the timing of payments at the end of fiscal 2026.

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*Net Cash Used in Investing Activities*

Investing activities consist primarily of investments and capital expenditures related to new store openings, buildings, operational equipment, and information technology investments.

Net cash used in investing activities was $0.3 million for the thirteen weeks ended May 2, 2026, compared to $1.0 million for the thirteen weeks ended May 3, 2025. The decrease in cash used in investing activities was primarily attributable to a decrease in property, plant, and equipment spending of $1.6 million in the current year period, partially offset by $0.9 million proceeds from the sale of Pura Vida recognized in the prior-year period.

*Net Cash Used in Financing Activities*

Net cash used in financing activities was $0.4 million for the thirteen weeks ended May 2, 2026, compared to $0.2 million for the thirteen weeks ended May 3, 2025. The increase in cash used in financing activities was primarily attributable to higher tax withholding payments related to equity compensation.

*Credit Agreement*

On September 7, 2018, Vera Bradley Designs, Inc. ("VBD"), a wholly-owned subsidiary of the Company, entered into an asset-based revolving Credit Agreement (the "Credit Agreement") among VBD, JPMorgan Chase Bank, N.A., as administrative agent, and the lenders from time to time party thereto. On March 11, 2025, certain subsidiaries of the Company, JPMorgan Chase Bank, N.A., as the administrative agent, and lenders from time to time party thereto, entered into a Fourth Amendment (the "Fourth Amendment") to the Credit Agreement. The Credit Agreement provides for certain credit facilities to VBD in an aggregate principal amount not to initially exceed the lesser of $75.0 million or the amount of borrowing availability determined in accordance with a borrowing base of certain assets. Borrowings under the credit facilities are available to finance general corporate purposes of VBD and its subsidiaries, including but not limited to Vera Bradley International, LLC, and Vera Bradley Sales, LLC. The Credit Agreement also contains an option for VBD to arrange with lenders to increase the aggregate principal amount by up to $50.0 million.

On October 21, 2025, VBD amended the agreement to include, among other things, to: (i) permit the sale of certain real property assets without requiring the application of the proceeds from such sale to be used to repay amounts outstanding under the Credit Agreement, (ii) remove the prohibition against sale and leaseback transactions and (iii) increase the amount of Company assets permitted to be disposed of in any fiscal year outside the ordinary course of business from $5,000,000 to $10,000,000.

As of May 2, 2026 and January 31, 2026, the Company had no borrowings outstanding and availability of $68.0 million and $58.6 million, respectively, under the Credit Agreement, subject to the borrowing base provisions of the facility.

For further information regarding the Credit Agreement, please see Note 6 of the Notes to Condensed Consolidated Financial Statements herein.

**Material Cash Requirements**

As of May 2, 2026, there were no material changes outside the ordinary course of business to material cash requirements, as disclosed in our Annual Report on Form 10-K for the fiscal year ended January 31, 2026.

**Off-Balance-Sheet Arrangements**

We do not have any off-balance-sheet financing or unconsolidated special-purpose entities.

**Critical Accounting Policies and Estimates**

The preparation of financial statements in accordance with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, and expenses, as well as the related disclosures of contingent assets and liabilities at the date of the financial statements. A summary of the Company's significant accounting policies is included in Note 2 to the Company's consolidated financial statements in the Company's Annual Report on Form 10-K for the fiscal year ended January 31, 2026.

Certain accounting policies and estimates of the Company are considered critical, as these policies and estimates are the most important to the depiction of the Company's consolidated financial statements and require significant, difficult, or complex judgments, often about the effect of matters that are inherently uncertain. Such policies are summarized in the "Management's Discussion and Analysis of Financial Condition and Results of Operations" in the Company's Annual Report on Form 10-K for

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the fiscal year ended January 31, 2026. There were no significant changes to any of the critical accounting policies and estimates described in the Annual Report as of May 2, 2026.

**Recently Issued Accounting Pronouncements**

Refer to Note 1 "Description of the Company and Basis of Presentation" within Item 1 "Financial Statements" of this Quarterly Report on Form 10-Q for a discussion of recently issued accounting pronouncements.

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**ITEM 3.&nbsp;&nbsp;&nbsp;&nbsp;QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK**

As of May 2, 2026, there was no material change in the market risks described in "Quantitative and Qualitative Disclosures About Market Risks" in the Company's Annual Report on Form 10-K for the fiscal year ended January 31, 2026.

**ITEM 4.&nbsp;&nbsp;&nbsp;&nbsp;CONTROLS AND PROCEDURES**

At the end of the period covered by this Quarterly Report on Form 10-Q, the Company carried out an evaluation, under the supervision and with the participation of the Company's Disclosure Committee and management, including the Chief Executive Officer and the Chief Operating & Financial Officer, of the effectiveness of the design and operation of the Company's disclosure controls and procedures pursuant to Rule 13a-15 of the Securities Exchange Act of 1934. Based on that evaluation, the Chief Executive Officer and Chief Operating & Financial Officer concluded that the Company's disclosure controls and procedures were effective as of May 2, 2026.

There has been no change in our internal control over financial reporting during the most recent fiscal quarter that has materially affected, or that is reasonably likely to materially affect, our internal control over financial reporting.

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**PART II. OTHER INFORMATION**

**ITEM 1.**&nbsp;&nbsp;&nbsp;&nbsp;**LEGAL PROCEEDINGS** 

We may be involved from time to time, as a plaintiff or a defendant, in various routine legal proceedings incidental to the ordinary course of our business. In the ordinary course, we are involved in the policing of our intellectual property rights. As part of our policing program, from time to time we file lawsuits in the United States and abroad, alleging acts of trademark counterfeiting, trademark infringement, trademark dilution, and ancillary and pendent state and foreign law claims. These actions often result in seizure of counterfeit merchandise and negotiated settlements with defendants. Defendants sometimes raise as affirmative defenses, or as counterclaims, the purported invalidity or unenforceability of our proprietary rights.

In June of 2025, the Company received a notice from the buyer of Creative Genius requesting a purchase price adjustment of approximately $4.6 million related to the sale of Creative Genius. The demand was based on certain working capital adjustments. The Company has disputed this purchase price adjustment request. On August 27, 2025, the Company filed an action in the Chancery Court of Delaware seeking a judgment declaring that the buyer's claim for a purchase price adjustment is improper and barred by the purchase Agreement. The Company has filed for summary judgment in that action. At this time, we are not able to estimate a possible loss or range of loss that may result from this matter or to determine whether such loss, if any, would have a material adverse effect on our financial condition or results of operations due to the fact that the Company believes the purchase price adjustment is improper, and is seeking to have it declared as such by a Delaware Court. The Company believes that it has a number of meritorious legal approaches in defending itself against these claims.

The Company is also subject to other legal proceedings from time to time in the ordinary course of business but does not believe any of these such claims would have a material adverse impact on the Company at this time.

**ITEM 1A.**&nbsp;&nbsp;&nbsp;&nbsp;**RISK FACTORS**

There have been no material changes to the risk factors previously set forth in the Company's Annual Report on Form 10-K for the fiscal year ended January 31, 2026.

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**ITEM 2.&nbsp;&nbsp;&nbsp;&nbsp;UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS**

In December 2024, the Company's board of directors approved a new share repurchase plan (the "2024 Share Repurchase Program") which authorized Company management to utilize up to $30.0 million of available cash for repurchases of shares of the Company's common stock. The 2024 Share Repurchase Program went into effect beginning December 14, 2024 and expires in December 2027. The Company does not currently plan to purchase under the 2024 Share Repurchase Program, but anticipates utilizing it in the future depending on the Company's cash position.

As of May 2, 2026, there were no purchases made under the 2024 Share Repurchase Program.

**ITEM 5.&nbsp;&nbsp;&nbsp;&nbsp;OTHER INFORMATION**

*Securities Trading Plans of Directors and Executive Officers*

During the thirteen weeks ended May 2, 2026, none of the Company's directors or executive officers adopted or terminated any contract, instruction, or written plan for the purchase or sale of Company securities that was intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) or any "non-Rule 10b5-1 trading arrangement."

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**ITEM 6.&nbsp;&nbsp;&nbsp;&nbsp;EXHIBITS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Exhibits

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| | |
|:---|:---|
| **Exhibit<br>No.** | **Description** |
| <u>[10.1](vra-20260502xex101.htm)</u> | <u>[Fiscal 2027 Annual Incentive Compensation Plan (Executives)](vra-20260502xex101.htm)</u> |
| <u>[31.1](vra-20260502xex311.htm)</u> | <u>[CEO Section 302 Certification](vra-20260502xex311.htm)</u> |
| <u>[31.2](vra-20260502xex312.htm)</u> | <u>[CFO Section 302 Certification](vra-20260502xex312.htm)</u> |
| <u>[32.1](vra-20260502xex321.htm)</u> | <u>[Section 906 Certifications](vra-20260502xex321.htm)</u> |
| 101.INS | Inline XBRL Instance Document (the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document) |
| 101.SCH | Inline XBRL Taxonomy Extension Schema Document |
| 101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document |
| 101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document |
| 101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document |
| 101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document |
| 104 | Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;\* |  |

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**SIGNATURE**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

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| | |
|:---|:---|
| | Vera Bradley, Inc.<br>(Registrant) |
| **Date: June 11, 2026** | /s/ Martin Layding |
| | Martin Layding |
| | Chief Operating & Financial Officer |

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## Exhibit 10.1

**Exhibit 10.1**

**Corporate Annual Incentive Compensation Plan**

**Executive Officer - Fiscal 2027**

**Plan Overview**

Awards under this Annual Incentive Compensation Plan ("Annual Plan") are granted under and governed by the terms and conditions of the Vera Bradley, Inc. 2020 Equity and Incentive Plan (the "2020 Plan"), as amended. Any term capitalized herein but not defined will have the meaning set forth in the 2020 Plan.

This Annual Plan is designed to give each eligible Participant (as defined in the attached Administrative Guidelines) an opportunity to share in the Company's success for the fiscal year ending January 30, 2027 (the "Performance Period"). The incentive is intended to be an inducement for future faithful service as well as a reward for performance. The incentive opportunity for the Performance Period is based on a percentage of each Participant's Base Salary (as defined herein) and will be earned based on two independent performance measures: (1) Company Performance (Adjusted EBITDA) and (2) Company Performance (Cash Management). Collectively, these are referred to as the "FY27 Performance Measures."

**Calculation of Incentive Opportunity**

The incentive opportunity for each Participant is determined based on a percentage of each Participant's Base Salary (as defined below) based upon the Participant's level:

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| | | | |
|:---|:---|:---|:---|
| | **Incentive Opportunity as a Percentage of Base Salary** | **Incentive Opportunity as a Percentage of Base Salary** | **Incentive Opportunity as a Percentage of Base Salary** |
| **Participant Level** | **Threshold** | **Target** | **Excellence** |
| Chief Executive Officer | 25% | 100% | 200% |
| Chief Operating & Financial Officer | 16.25% | 65% | 130% |
| Chief Brand Officer | 16.25% | 65% | 130% |

---

"Base Salary" is defined as the Participant's gross base salary (before taxes and deductions) paid by the Company to the Participant during the Performance Period.

Each Participant will have the opportunity to earn the incentive set forth above based on the level of achievement against the FY27 Performance Measures:

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| | |
|:---|:---|
| **Company Performance Measures** | **Company Performance Measures** |
| **Adjusted EBITDA** | **Cash Management** |
| 50% | 50% |

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**Financial Performance Payouts**

Payouts for Financial Performance are based on meeting two independent financial metrics, which are Adjusted EBITDA and Cash Management. Assuming at least threshold levels of performance against the Performance goals are met during the Performance Period, the actual payout levels will range from 25%-200% of target.

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| | |
|:---|:---|
| **Adjusted EBITDA Performance Level** | **Payout as a Percentage of the Portion of Incentive Tied to Corporate Performance\*** |
| Threshold | 25% |
| Target | 100% |
| Excellence | 200% |
| **Cash Management Performance Level** | **Payout as a Percentage of the Portion of Incentive Tied to Corporate Performance\*** |
| Threshold | 25% |
| Target | 100% |
| Excellence | 200% |

---

\*Payout levels are determined using linear interpolation for results falling between the three performance levels. All payouts are subject to Compensation Committee approval.

**Payout Method**

Based on performance achieved during the Performance Period, incentive payouts will be made in cash, shares of Company stock, or a combination of both as indicated below. The form of payout for each performance measure (Adjusted EBITDA and Cash Management) will vary based on the level of performance attained. Any shares of Company stock earned under this Annual Plan are expected to be granted in April 2027 and will vest immediately upon grant. Provided however, that the Compensation Committee may, in its sole discretion, elect to make incentive payouts entirely in cash based on availability of Company stock. Payments of stock shall be valued based on the closing price of the Company's stock on the day preceding when the stock is granted or otherwise paid.

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | | **Adjusted EBITDA** | **Adjusted EBITDA** | | | **Cash\*** | **Cash\*** |
| | | Cash | Stock | | | Cash | Stock |
| Maximum | $0 | 100% | 100% | Maximum | $35M | 100% | 100% |
| Excellence | ($2.4M) | 50% | 100% | Excellence | $31M | 50% | 100% |
| Target | ($4.0M) | 0% | 100% | Target | $25.6M | 0% | 100% |
| Threshold | ($4.8M) | 0% | 25% | Threshold | $18.5M | 0% | 25% |
|  |  |  |  | *\*Net of debt* |  |  |  |

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**<u>Administrative Guidelines</u>**

1. The CEO CFO, and CBO are eligible to participate in this Annual Plan. Any question regarding eligibility for participation in this Annual Plan shall be resolved by the Compensation Committee, in the Committee's sole discretion.

2. Participation in this Annual Plan neither gives any employee the right to be retained as an employee nor limits the Company's right to discharge or discipline any employee.

3. Final payout of any bonus under this Plan is subject to the final approval of the Vice President, Human Resources and the Compensation Committee.

4. Participants placed on a Performance Improvement Plan or who are on Step 3 Probation within six months of when payment is made under this Plan will not be eligible for such payment.

5. Certification of Results. Before any Awards under the Annual Plan are deemed earned with respect to a Performance Period, the Compensation Committee shall certify, in accordance with Section 9.5 of the 2020 Plan, in writing (i) that the performance goals have been met for the Performance Period, and (ii) the calculation of "Adjusted EBITDA" and "Cash Management" for the Performance Period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.Definition of "Adjusted EBITDA". For purposes of this Annual Plan, the term "Adjusted EBITDA" means, with respect to the Performance Period related to any Awards, the Company's consolidated earnings before interest, depreciation and amortization, as determined in accordance with U.S. GAAP, adjusted to exclude the effects, as shown on the financial statements furnished as part of Form 8-K (announcing the Company's fiscal year-end financial results) for any fiscal year of the Company ending with or within the Performance Period, of (i) any acquisition during the Performance Period, including the amortization expense of intangible assets acquired during the Performance Period, (ii) material charges or income arising from litigation, (iii) corporate restructuring, asset impairment, severance, special charges associated with the execution of strategic initiatives or other charges as approved by the Compensation Committee, and (iv) cumulative effect of changes to U.S. GAAP accounting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Definition of "Cash Management". For purposes of this Annual Plan, the term "Cash Management" means, with respect to the Performance Period related to any Awards, the Company's consolidated cash and cash equivalents, as determined in accordance with U.S. GAAP and as shown on the financial statements furnished as part of Form 8-K (announcing the Company's fiscal year-end financial results) for any fiscal year of the Company ending with or within the Performance Period, adjusted for any borrowings on the Company's asset-based lending ("ABL") facility at the end of the fiscal year.

6. Except as provided herein, (a) no Participant will be entitled to an incentive payment under the Plan unless the Participant is employed by the Company or an Affiliate in an eligible position on the day the incentive payment is made, and (b) a Participant who separates from Service for any reason prior to the date of payment of such incentive will not be entitled to a prorated award, unless otherwise required by applicable state law. By way of clarification, should a Participant separate from Service and be rehired within the same Performance Period, the Participant shall not be given credit for prior periods Service. Notwithstanding the preceding provisions, the following provisions will apply if, during the Performance Period (or after the Performance Period and prior to the date of payment), you cease providing Services due to death, Disability or Retirement (and provided that you have not otherwise engaged in an act that would constitute Cause):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i.Death or Disability: In the event a Participant's Service terminates as a result of death or Disability prior to the date on which the incentive payment is made, the outstanding Award shall be treated as earned at the actual level for both the Company performance and at the target level for individual performance with any such earned Awards becoming fully vested and paid out as provided in section 8, below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii.Retirement: In the event a Participant's Service with the Company terminates as a result of Retirement during the Performance Period, the outstanding Award shall be earned based on the actual Company performance level obtained (determined at the end of the Performance Period) and target individual performance level, with any such earned Awards becoming fully vested and paid out as provided in section 8, below. Retirement age is defined as the individual's early or normal retirement date as defined by the United States Social Security Administration.

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7. Notwithstanding anything to the contrary in this Annual Plan, in the event of a Change in Control of the Company during the Performance Period, then the outstanding Award shall be treated as earned at the target level, but prorated based on the number of full fiscal months (in which the Participant provided Service throughout such month) during the Performance Period, with any such earned

Awards becoming fully vested and paid out on a as soon as practicable (but not later than 30 calendar days) following the Change in Control. For purposes of this Annual Plan, the term "Change in Control" shall mean the occurrence of any one or more of the following: (a) the acquisition of ownership, directly or indirectly, beneficially or of record, by any Person or group (within the meaning of the Exchange Act and the rules of the Securities and Exchange Commission as in effect on the date of this Award), other than (i) Barbara Baekgaard, Patricia Miller, Michael Ray and Kim Colby and their respective heirs and descendants and any trust established for the benefit of such Persons, (ii) the Company or a corporation owned directly or indirectly by the shareholders of the Company in substantially the same proportions as their ownership of stock of the Company, or (iii) any employee benefit plan (or related trust) sponsored or maintained by the Company or any Affiliate, of securities of the Company representing more than twenty-five percent (25%) of the combined voting power of the Company's then outstanding securities; (b) the occupation of a majority of the seats (other than vacant seats) on the Board by Persons who were neither (i) nominated by the Board nor (ii) appointed by directors so nominated; or (c) the consummation of (i) an agreement for the sale or disposition of all or substantially all of the Company's assets, or (ii) a merger, consolidation or reorganization of the Company with or involving any other corporation, other than a merger, consolidation or reorganization that results in the voting securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity) at least fifty percent (50%) of the combined voting power of the voting securities of the Company (or such surviving entity) outstanding immediately after such merger, consolidation or reorganization.

8. All Participants will receive an award that is prorated based on Base Salary earned during the Performance Period.

9. In the event that a Participant joins the Company at any time during the final three fiscal months of the Performance Period, such participant will not be eligible to participate in this Plan.

10. All goal attainment calculations will follow normal rounding guidelines (i.e., 93.1% to 93.49% = 93%; 93.5% to 93.9% = 94%).

11. Payments under the Annual Plan will be paid after the end of the Company's fiscal tax year but no later than the 15th day of the third month following the Company's fiscal tax year on which the annual incentives under this Annual Plan are based.

12. In the event of an error in the bonus payout, the Company reserves the right to claw back any overpaid amounts. This may include deducting or requiring repayment of any funds mistakenly awarded.

13. The Company shall have the power and the right to deduct or withhold an amount sufficient to satisfy federal, state, and local taxes (including FICA obligations), domestic or foreign, and other deductions required to be withheld by law with respect to this Award.

14. Record keeping and computation required by this Annual Plan will be subject to review by third-party auditors, and by the Compensation Committee.

15. Interpretations, determinations, and actions regarding plan administration shall be made by the Compensation Committee. Any such determinations and any interpretation, rule, or decision under the Annual Plan or in carrying out or administering the Annual Plan, is final and binding for all purposes and upon all interested persons, their heirs, and personal representatives. The Company or its designee may rely conclusively on

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determinations made by the Company and its auditors to determine related information for purposes of administration of the Annual Plan, whether such information is determined by the Company, its auditors, or a third-party vendor engaged to provide such information to the Company.

16. While it is the intent of the Company to continue this Annual Plan as stated herein, the Company reserves the right to amend or discontinue the plan at any time in its sole discretion.

17. No Participant can assign, encumber or transfer any of his or her rights and interests under the Award described in this document, except, in the event of his or her death, by will or the laws of descent and distribution.

18. The rights granted under this document are in all respects subject to the provisions of the 2020 Plan to the same extent and with the same effect as if they were set forth fully therein. If the terms of this document or the Award conflict with the terms of the 2020 Plan, the 2020 Plan will control.

19. Awards under this Plan shall be subject to all other Company policies, as amended, including but not limited to the Vera Bradley Compensation Recoupment Policy.

## Exhibit 31.1

**Exhibit 31.1**

**CERTIFICATION PURSUANT TO SECTION 302**

**OF THE SARBANES-OXLEY ACT OF 2002**

I, Ian Bickley, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Vera Bradley, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f))for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d.Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

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| | |
|:---|:---|
| **Date: June 11, 2026** | /s/ Ian Bickley |
| | Ian Bickley |
| | *Chief Executive Officer & Chairman* |

---

## Exhibit 31.2

**Exhibit 31.2**

**CERTIFICATION PURSUANT TO SECTION 302**

**OF THE SARBANES-OXLEY ACT OF 2002**

I, Martin Layding, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Vera Bradley, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f))for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d.Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

---

| | |
|:---|:---|
| **Date: June 11, 2026** | /s/ Martin Layding |
| | Martin Layding |
| | *Chief Operating & Financial Officer* |

---

## Exhibit 32.1

**Exhibit 32.1**

**CERTIFICATIONS PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906**

**OF THE SARBANES-OXLEY ACT OF 2002**

&nbsp;&nbsp;&nbsp;&nbsp;I, Ian Bickley, the Chief Executive Officer & Chairman of Vera Bradley, Inc., certify that (i) the quarterly report on Form 10-Q for the fiscal quarter ended May 2, 2026 (the "Report") fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, and (ii) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of Vera Bradley, Inc. as of the dates and for the periods set forth therein.

---

| |
|:---|
| /s/ Ian Bickley |
| Ian Bickley |
| *Chief Executive Officer & Chairman* |
| June 11, 2026 |
| Date |

---

&nbsp;&nbsp;&nbsp;&nbsp;I, Martin Layding, the Chief Operating & Financial Officer of Vera Bradley, Inc., certify that (i) the quarterly report on Form 10-Q for the fiscal quarter ended May 2, 2026 (the "Report") fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, and (ii) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of Vera Bradley, Inc. as of the dates and for the periods set forth therein.

---

| |
|:---|
| /s/ Martin Layding |
| Martin Layding |
| *Chief Operating & Financial Officer* |
| June 11, 2026 |
| Date |

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