VERA BRADLEY PROVIDES BUSINESS UPDATE RELATED TO COVID-19

FORT WAYNE, Ind., March 20, 2020 (GLOBE NEWSWIRE) -- Vera Bradley, Inc. (Nasdaq: VRA) (“Vera Bradley” or the “Company”) today announced a business update related to COVID-19.

"The physical health and financial well-being of our Associates and customers are our top priorities,” noted Rob Wallstrom, Chief Executive Officer of Vera Bradley.  “With this in mind, and as result of the rapidly intensifying COVID-19 pandemic, we have taken several actions.” 

Effective at the end of day on March 18, 2020, all of Vera Bradley’s Full Line and Factory stores have been temporarily closed through April 2, 2020.  Store Associates will be compensated through that date.  Vera Bradley continues to serve its customers through its digital flagship, verabradley.com.  The Company also postponed its Annual Outlet Sale, traditionally held in April in its hometown of Fort Wayne, to next year.   

Wallstrom added, “Our balance sheet is solid.  At February 1, 2020, we had cash, cash equivalents, and investments of $73.8 million and no debt.  However, as a precaution against the uncertainties ahead, we have drawn $60 million of our $75 million asset-based revolving credit agreement to increase our cash position and provide additional flexibility.” 

The Company is also prudently addressing its day-to-day operations, including reducing expenses, inventory levels, and capital spending. 

The Board of Directors approved temporarily suspending its share repurchase program.  

On March 11, 2020, the Company provided its outlook for fiscal 2021 (fiscal year ending January 30, 2021).  Even though the Company’s guidance excluded any impact of COVID-19, given the uncertainty of the global and retail environment and the duration of the crisis, the Company is withdrawing its previous guidance.  

Wallstrom concluded, “At Vera Bradley, empathy and kindness are two of the core values that inform every decision we make as a Company.  We strive to act with compassion in our hearts and care for everyone we meet.  We consider our customers, coworkers, and communities to be family.  We are working hard to take care of our family.  Our thoughts and prayers go out to everyone who has been affected by this situation.”

About Vera Bradley

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 unlike any other brand in the global marketplace. Vera Bradley offers a multi-channel sales model as well as a focus on service and a high level of customer engagement.  The Company’s commitment to bringing more beauty into women’s lives includes its dedication to breast cancer research through the Vera Bradley Foundation for Breast Cancer.