GlobeNewswire Inc | Jun 9, 2021 08:00AM EDT

June 09, 2021

Consolidated net revenues totaled $109.1 million for the current year first quarter, an increase of 57.5% over $69.3 million in the prior year

For the quarter, Vera Bradley, Inc. substantially narrowed its net loss to $2.1 million, or $0.06 per diluted share; excluding certain items, the non-GAAP net loss totaled $1.7 million, or $0.05 per diluted share

Balance sheet remains strong, with cash, cash equivalents, and investments over $50 million and no debt

Management increases annual guidance for fiscal year ending January 29, 2022

FORT WAYNE, Ind., June 09, 2021 (GLOBE NEWSWIRE) -- Vera Bradley, Inc. (Nasdaq: VRA) today announced its financial results for the first quarter ended May 1, 2021.

In this release, Vera Bradley, Inc. or the Company refers to the entire enterprise and includes both the Vera Bradley and Pura Vida brands. Vera Bradley on a stand-alone basis refers to the Vera Bradley brand.

First Quarter Comments

We outperformed our revenue and earnings expectations in the first quarter, noted Rob Wallstrom, Chief Executive Officer of the Company. Consumer confidence, traffic, and spending grew as vaccines became more widely available; government stimulus funds were distributed; and customers began returning to work, social events, and travel. We expanded our consolidated gross margin rate and prudently managed our expenses.

As a reminder, our enterprises forward-looking strategy is to be a purpose-driven, multi-lifestyle brand, high-growth company, Wallstrom continued. Our strong cash position, debt-free balance sheet, and ability to generate free cash flow will allow us to continue to invest in both our Vera Bradley and Pura Vida brands and seek out appropriate acquisitions of other comfortable, affordable, purpose-driven, digitally-native brands, similar to our successful Pura Vida acquisition, over time. We will also continue to expand our reach by adding adjacent product categories and geographies.

Summary of Financial Performance for the First Quarter

Consolidated net revenues totaled $109.1 million for the current year first quarter, an increase of 57.5% over $69.3 million in the prior year first quarter. Prior year revenues were adversely affected by the COVID-19 pandemic.

For the current year first quarter, Vera Bradley, Inc.s consolidated net loss totaled ($2.1) million, or ($0.06) per diluted share. These results included $0.4 million of net after tax charges related to intangible asset amortization. On a non-GAAP basis, Vera Bradley, Inc.s consolidated first quarter net loss totaled ($1.7) million, or ($0.05) per diluted share.

For the prior year first quarter, the Company posted a net loss of ($15.3) million, or ($0.66) per diluted share. These results included $5.1 million of net after tax charges, comprised of $2.2 million of impairment charges, $1.1 million of intangible asset amortization, $0.8 million of expenses related to the re-platforming of Vera Bradleys information technology systems (Project Novus), $0.8 million of charges related to the cancellation of certain purchase orders as a result of COVID-19, a $0.1 million adjustment to the Pura Vida earn-out liability, and $0.1 million in certain department store exit costs resulting from COVID-19. In addition, the Company recorded an Accounting Standard Codification (ASC) 480 measurement adjustment to increase the redeemable noncontrolling interest to its redemption value, which exceeded its fair value by $6.8 million. This excess portion of the adjustment increased the Vera Bradley, Inc. loss utilized in the numerator of the earnings per share calculation by $6.8 million, which resulted in a $0.20 negative impact to diluted earnings per share for the prior year first quarter. On a non-GAAP basis, Vera Bradley, Inc.s consolidated prior year first quarter net loss totaled ($10.2) million, or ($0.31) per diluted share.

Non-GAAP Numbers

The current year non-GAAP first quarter income statement numbers referenced below exclude the previously outlined intangible asset amortization. The prior year non-GAAP first quarter income statement numbers referenced below exclude the previously outlined impairment charges, intangible asset amortization, Project Novus expenses, charges related to the cancellation of certain purchase orders resulting from COVID-19, an adjustment to the Pura Vida earn-out liability, and certain department store exit costs resulting from COVID-19.

First Quarter Details

Current year first quarter Vera Bradley Direct segment revenues totaled $66.7 million, an 81.2% increase over $36.8 million in the prior year first quarter. Since the Companys stores were temporarily closed for approximately half of the prior year first quarter, a comparable store sales calculation related to the prior year is not pertinent. The Company permanently closed 10 full-line stores and opened seven factory outlet stores in the last twelve months.

Vera Bradley Indirect segment revenues totaled $15.3 million, a 35.9% increase over $11.2 million in the prior year first quarter. Prior year revenues reflected a reduction in orders primarily related to COVID-19 and in the number of specialty and department store accounts.

Pura Vida segment revenues totaled $27.1 million, a 27.7% increase over $21.2 million in the prior year first quarter. The prior year revenue numbers reflected a decline in sales to wholesale accounts, which were negatively affected by COVID-19.

First quarter consolidated gross profit totaled $59.2 million, or 54.2% of net revenues, compared to $34.2 million, or 49.3% of net revenues, in the prior year first quarter. On a non-GAAP basis, prior year first quarter gross profit totaled $35.5 million, or 51.2% of net revenues. The year-over-year improvement was driven by a shift in channel mix and more full-price selling.

Consolidated SG&A expense totaled $60.9 million, or 55.8% of net revenues, for the quarter, compared to $59.8 million, or 86.3% of net revenues, for the prior year first quarter. On a non-GAAP basis, consolidated SG&A expense totaled $60.1 million, or 55.1% of net revenues, for the current quarter, compared to $51.6 million, or 74.5% of net revenues, for the prior year first quarter. Prior year SG&A expenses and leverage were materially affected by COVID-19.

The Companys first quarter consolidated operating loss totaled ($2.0) million, or (1.8%) of net revenues, compared to an operating loss of ($25.6) million, or (36.9%) of net revenues, in the prior year first quarter. On a non-GAAP basis, the consolidated operating loss totaled ($1.2) million, or (1.1%) of net revenues, compared to ($16.1) million, or (23.2%) of net revenues, in the prior year.

By segment:

-- Vera Bradley Directs first quarter operating income was $10.9 million, or 16.3% of Direct net revenues, compared to an operating loss of ($11.0) million, or (29.8%) of Direct net revenues, in the prior year. On a non-GAAP basis, the prior year Direct operating loss totaled ($5.1) million, or (13.8%) of Direct net revenues. -- Vera Bradley Indirects first quarter operating income was $4.5 million, or 29.2% of Indirect net revenues, compared to $2.8 million, or 24.5% of Indirect net revenues, in the prior year. On a non-GAAP basis, the prior year Indirect operating income totaled $3.1 million, or 28.0% of Indirect net revenues. -- Pura Vidas first quarter operating income was $2.5 million, or 9.3% of Pura Vida net revenues, compared to an operating loss of ($0.8) million, or (3.8%) of Pura Vida net revenues, in the prior year. On a non-GAAP basis, Pura Vidas current year first quarter operating income was $3.3 million, or 12.1% of Pura Vida net revenues, compared to $1.6 million, or 7.7% of Pura Vida net revenues, for the prior year.

Balance Sheet

Net capital spending for the first quarter totaled $0.5 million.

Cash, cash equivalents, and investments as of May 1, 2021 totaled $52.7 million compared to $85.1 million at the end of last years first quarter. The prior year first quarter balance included $60.0 million drawn on the Companys $75.0 million ABL credit facility at quarter end. This has since been repaid, leaving no borrowings on the facility at quarter end.

Total quarter-end inventory was $150.3 million, compared to $132.9 million at the end of the first quarter last year. Quarter-end inventory was higher than the prior year primarily due to additional Pura Vida inventory related to category expansions and product intensifications. Management expects year-over-year inventory should be down by approximately 5% by the end of Fiscal 2022.

There were no common stock repurchases during the first quarter of Fiscal 2022. At the end of the first quarter, the Company had approximately $32.9 million remaining under its $50.0 million share repurchase authorization which expires on December 11, 2021.

Looking Ahead

Wallstrom commented, As a reminder, for Fiscal 2022, the Companys four key growth drivers are:

-- Driving our digital-first strategy, by evolving the digital distribution of our products and further refining and utilizing digital experiences to serve our customers. This will be supported by continuously refining our technology, developing business process and technology platforms to improve agility, data-based decision making, customer centricity, and speed-to-market. -- Enhancing our product innovation pipeline, collaborations,and category extensions to attract new customers and increase share of wallet with existing customers. -- Building our community, through marketing and by creating an impactful, positive brand movement that not only changes lives but deepens our customers brand loyalty. -- Evolving our distribution channels, by focusing on future growth opportunities and addressing the drastically changing retail environment and the consumer marketplace.

Wallstrom concluded, We have a long-term vision for the future of our Company and a clear path to achieve this vision. Our team is focused, our balance sheet is solid, our brands are strong, and we are positioned for growth. We are excited about the possibilities for Vera Bradley, Inc.

Forward Outlook

The retail environment continues to be uncertain, and future financial performance is difficult to predict. However, management is providing its estimates for the full year of Fiscal 2022 (outlined below) based on current expectations. Based on the Companys first quarter performance, management is raising its revenue and diluted earnings per share estimates for the fiscal year from its guidance previously provided on March 9, 2021.

All forward-looking guidance numbers referenced below are non-GAAP. The prior year gross profit, SG&A, and earnings per diluted share numbers exclude the previously disclosed net charges related to intangible asset amortization, store impairment charges, Project Novus expenses, cancellation of certain purchase orders related to the pandemic, adjustment to the Pura Vida earn-out liability, and certain department store exit costs related to the pandemic. Current year guidance excludes any similar charges.

For Fiscal 2022, the Companys updated expectations are as follows:

-- Consolidated net revenues of $555 to $575 million. Net revenues totaled $468.3 million in Fiscal 2021. Year-over-year Pura Vida revenues are expected to grow between 20% and 30%, and Vera Bradley revenues are expected to grow between 15% and 20%. -- Free cash flow of between $50 and $55 million compared to $15.0 million in the prior year. -- A consolidated gross profit percentage of 56.0% to 57.0% compared to 57.0% in Fiscal 2021. The potential rate decline relates to an abatement in mask penetration in Fiscal 2022 coupled with incremental costs for inbound and outbound freight expense. -- Consolidated SG&A expense of $265 to $275 million compared to $233.0 million in Fiscal 2021. The expected SG&A increase is primarily related to Vera Bradley stores being opened for the full year (stores were temporarily closed for between several weeks and several months in Fiscal 2021 due to the pandemic), non-comparable compensation and Cares Act savings in Fiscal 2021, and general variable increases associated with higher sales expectations. -- Consolidated operating income of $46 to $53 million compared to $34.0 million in Fiscal 2021. -- Consolidated diluted EPS of $0.85 to $1.00 based on diluted weighted-average shares outstanding of 34.6 million and an effective tax rate of approximately 24.0%. Diluted EPS totaled $0.63 last year. -- Net capital spending of approximately $8 to $10 million compared to $5.7 million in the prior year, reflecting investments associated with new factory locations and technology and logistics enhancements.

Disclosure Regarding Non-GAAP Measures

The Company's management does not, nor does it suggest that investors should, consider the supplemental non-GAAP financial measures in isolation from, or as a substitute for, financial information prepared in accordance with accounting principles generally accepted in the United States (GAAP). Further, the non-GAAP measures utilized by the Company may be unique to the Company, as they may be different from non-GAAP measures used by other companies.

The Company believes that the non-GAAP measures presented in this earnings release, including free cash flow; gross profit; selling, general, and administrative expenses; operating loss; net loss; net loss attributable and available to Vera Bradley, Inc.; and diluted net loss per share available to Vera Bradley, Inc. common shareholders, along with the associated percentages of net revenues, are helpful to investors because they allow for a more direct comparison of the Companys year-over-year performance and are consistent with managements evaluation of business performance. A reconciliation of the non-GAAP measures to the most directly comparable GAAP measures can be found in the Companys supplemental schedules included in this earnings release.

Call Information

A conference call to discuss results for the first quarter is scheduled for today, Wednesday, June 9, 2021, at 9:30 a.m. Eastern Time. A broadcast of the call will be available via Vera Bradleys Investor Relations section of its website, www.verabradley.com. Alternatively, interested parties may dial into the call at (800) 600-4870, and enter the access code 6021253. A replay will be available shortly after the conclusion of the call and remain available through June 23, 2021. To access the recording, listeners should dial (844) 512-2921, and enter the access code 6021253.

About Vera Bradley, Inc.

Vera Bradley, Inc. operates two unique lifestyle brands Vera Bradley and Pura Vida. Vera Bradley and Pura Vida are complementary businesses, both with devoted, emotionally-connected, and multi-generational female customer bases; alignment as causal, comfortable, affordable, and fun brands; positioning as gifting and socially-connected brands; strong, entrepreneurial cultures; a keen focus on community, charity, and social consciousness; multi-channel distribution strategies; and talented leadership teams aligned and committed to the long-term success of their brands.

Vera Bradley, based in Fort Wayne, Indiana, is a leading designer of womens handbags, luggage and other travel items, fashion and home accessories, and unique gifts. Founded in 1982 by friends Barbara Bradley Baekgaard and Patricia R. Miller, the brand is known for its innovative designs, iconic patterns, and brilliant colors that inspire and connect women unlike any other brand in the global marketplace.

In July 2019, Vera Bradley, Inc. acquired a 75% interest in Creative Genius, Inc., which also operates under the name Pura Vida Bracelets (Pura Vida). Pura Vida, based in La Jolla, California, is a rapidly growing, digitally native, and highly engaging lifestyle brand founded in 2010 by friends Paul Goodman and Griffin Thall. Pura Vida has a differentiated and expanding offering of bracelets, jewelry, and other lifestyle accessories.

The Company has three reportable segments: Vera Bradley Direct (VB Direct), Vera Bradley Indirect (VB Indirect), and Pura Vida. The VB Direct business consists of sales of Vera Bradley products through Vera Bradley full-line and factory outlet stores in the United States, verabradley.com, the Vera Bradley online outlet site, and the Vera Bradley annual outlet sale in Fort Wayne, Indiana. The VB Indirect business consists of sales of Vera Bradley products to approximately 2,000 specialty retail locations throughout the United States, as well as select department stores, national accounts, third party e-commerce sites, and third-party inventory liquidators, and royalties recognized through licensing agreements related to the Vera Bradley brand. The Pura Vida segment consists of sales of Pura Vida products through the Pura Vida websites, www.puravidabracelets.com, www.puravidabracelets.eu, and www.puravidabracelets.ca, and through the distribution of its products to wholesale retailers.

Website Information

We routinely post important information for investors on our website www.verabradley.com in the "Investor Relations" section. We intend to use this webpage as a means of disclosing material, non-public information and for complying with our disclosure obligations under Regulation FD. Accordingly, investors should monitor the Investor Relations section of our website, in addition to following our press releases, SEC filings, public conference calls, presentations and webcasts. The information contained on, or that may be accessed through, our webpage is not incorporated by reference into, and is not a part of, this document.

Investors and other interested parties may also access the Companys most recent Corporate Responsibility and Sustainability Report outlining its ESG (Environmental, Social, and Governance) initiatives at https://verabradley.com/pages/corporate-responsibility.

Vera Bradley Safe Harbor Statement

Certain statements in this release are "forward-looking statements" made pursuant to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements reflect the Company's current expectations or beliefs concerning future events and are subject to various risks and uncertainties that may cause actual results to differ materially from those that we expected, including: possible adverse changes in general economic conditions and their impact on consumer confidence and spending; possible inability to predict and respond in a timely manner to changes in consumer demand; possible loss of key management or design associates or inability to attract and retain the talent required for our business; possible inability to maintain and enhance our brand; possible inability to successfully implement the Companys long-term strategic plan; possible inability to successfully open new stores, close targeted stores, and/or operate current stores as planned; incremental tariffs or adverse changes in the cost of raw materials and labor used to manufacture our products; possible adverse effects resulting from a significant disruption in our distribution facilities; or business disruption caused by COVID-19. Risks, uncertainties, and assumptions also include the possibility that Pura Vida acquisition benefits may not materialize as expected; that Pura Vidas business may not perform as expected; and that the Company is unable to successfully implement integration strategies related to the acquisition. More information on potential factors that could affect the Companys financial results is included from time to time in the Risk Factors and Managements Discussion and Analysis of Financial Condition and Results of Operations sections of the Companys public reports filed with the SEC, including the Companys Form 10-K for the fiscal year ended January 30, 2021. We undertake no obligation to publicly update or revise any forward-looking statement. Financial schedules are attached to this release.

CONTACTS:Investors:Julia Bentley, VP of Investor Relations and Communicationsjbentley@verabradley.com(260) 207-5116

Media:mediacontact@verabradley.com877-708-VERA (8372)

Vera Bradley, Inc.Condensed Consolidated Balance Sheets(in thousands)(unaudited) May 1, January 30, May 2, 2021 2021 2020Assets Current assets: Cash and cash equivalents $ 51,371 $ 64,175 $ 82,286 Short-term investments 1,293 1,295 499 Accounts receivable, net 21,945 27,543 20,559 Inventories 150,335 141,416 132,855 Income taxes receivable 8,782 7,372 10,913 Prepaid expenses and other 18,478 17,882 14,610 current assetsTotal current assets 252,204 259,683 261,722 Operating right-of-use 86,181 88,730 106,430 assetsProperty, plant, and 62,391 63,952 69,669 equipment, netIntangible assets, net 46,527 47,296 53,865 Goodwill 44,254 44,254 44,254 Long-term investments - - 2,271 Deferred income taxes 3,161 3,530 6,919 Other assets 6,525 6,342 6,267 Total assets $ 501,243 $ 513,787 $ 551,397 Liabilities, RedeemableNoncontrolling Interest, and Shareholders' EquityCurrent liabilities: Accounts payable $ 23,160 $ 27,093 $ 23,735 Accrued employment costs 11,122 13,648 5,660 Short-term operating lease 21,210 22,321 27,048 liabilitiesOther accrued liabilities 14,736 14,043 12,644 Income taxes payable - 321 90 Total current liabilities 70,228 77,426 69,177 Long-term operating lease 88,228 91,536 107,699 liabilitiesLong-term debt - - 60,000 Other long-term liabilities 83 109 89 Total liabilities 158,539 169,071 236,965 Redeemable noncontrolling 30,307 29,809 38,858 interestShareholders' equity: Additional paid-in-capital 105,076 105,433 99,879 Retained earnings 314,381 316,526 282,772 Accumulated other - 8 (17 )comprehensive income (loss)Treasury stock (107,060 ) (107,060 ) (107,060 )Total shareholders' equity 312,397 314,907 275,574 of Vera Bradley, Inc.Total liabilities,redeemable noncontrolling $ 501,243 $ 513,787 $ 551,397 interest, and shareholders'equity

Vera Bradley, Inc.Condensed Consolidated Statements of Operations(in thousands, except per share amounts)(unaudited) Thirteen Weeks Ended May 1, May 2, 2021 2020 Net revenues $ 109,094 $ 69,284 Cost of sales 49,930 35,096 Gross profit 59,164 34,188 Selling, general, and administrative expenses 60,896 59,782 Other (loss) income, net (227 ) 20 Operating loss (1,959 ) (25,574 )Interest expense, net 90 72 Loss before income taxes (2,049 ) (25,646 )Income tax benefit (531 ) (10,109 )Net loss (1,518 ) (15,537 )Less: Net income (loss) attributable to 627 (200 )redeemable noncontrolling interestNet loss attributable to Vera Bradley, Inc. $ (2,145 ) $ (15,337 ) Basic weighted-average shares outstanding 33,590 33,330 Diluted weighted-average shares outstanding 33,590 33,330 Basic net loss per share available to Vera $ (0.06 ) $ (0.66 )Bradley, Inc. common shareholdersDiluted net loss per share available to Vera $ (0.06 ) $ (0.66 )Bradley, Inc. common shareholders Reconciliation of net loss available to Vera Bradley, Inc. common shareholdersNet loss attributable to Vera Bradley, Inc. $ (2,145 ) $ (15,337 )Excess portion of redeemable noncontrolling - (6,800 )interest redemption value adjustmentNet loss available to Vera Bradley, Inc. common $ (2,145 ) $ (22,137 )shareholders

Vera Bradley, Inc.Condensed Consolidated Statements of Cash Flows(in thousands)(unaudited) Thirteen Weeks Ended May 1, May 2, 2021 2020Cash flows from operating activities Net loss $ (1,518 ) $ (15,537 )Adjustments to reconcile net loss to net cash used in operating activities:Depreciation of property, plant, and equipment 2,286 4,353 Amortization of operating right-of-use assets 4,930 5,563 Impairment charges - 3,806 Amortization of intangible assets 769 2,440 Provision for doubtful accounts (66 ) 497 Stock-based compensation 1,814 59 Deferred income taxes 369 737 Loss on investments - 20 Adjustment of earn-out liability - 229 Other non-cash gain, net (45 ) (23 )Changes in assets and liabilities: Accounts receivable 5,664 2,241 Inventories (8,919 ) (9,249 )Prepaid expenses and other assets (779 ) (4,593 )Accounts payable (4,234 ) 3,780 Income taxes (1,731 ) (11,893 )Operating lease liabilities, net (6,800 ) (384 )Accrued and other liabilities (1,780 ) (6,792 )Net cash used in operating activities (10,040 ) (24,746 ) Cash flows from investing activities Purchases of property, plant, and equipment (503 ) (2,238 )Purchases of investments - (851 )Proceeds from maturities and sales of - 21,788 investmentsCash received for business acquisition - 993 Proceeds from disposal of property, plant, and 45 - equipmentNet cash (used in) provided by investing (458 ) 19,692 activities Cash flows from financing activities Tax withholdings for equity compensation (2,171 ) (537 )Repurchase of common stock - (3,077 )Distributions to redeemable noncontrolling (129 ) (296 )interestBorrowings under asset-based revolving credit - 60,000 agreementPayment of contingent consideration for business - (18,677 )acquisitionNet cash (used in) provided by financing (2,300 ) 37,413 activitiesEffect of exchange rate changes on cash and cash (6 ) 10 equivalents Net (decrease) increase in cash and cash $ (12,804 ) $ 32,369 equivalentsCash and cash equivalents, beginning of period 64,175 49,917 Cash and cash equivalents, end of period $ 51,371 $ 82,286



Vera Bradley, Inc.First Quarter Fiscal 2022GAAP to Non-GAAP Reconciliation Thirteen Weeks Ended May 1, 2021(in thousands, except per share amounts)(unaudited) Thirteen Weeks Ended Non-GAAP As Reported Other Items (Excluding Items)Gross profit $ 59,164 $ - $ 59,164 Selling, general, and 60,896 769 ^1 60,127 administrative expensesOperating loss (1,959 ) (769 ) (1,190 )Loss before income taxes (2,049 ) (769 ) (1,280 )Income tax benefit (531 ) (163 ) (368 )Net loss (1,518 ) (606 ) (912 )Less: Net income (loss)attributable to redeemable 627 (192 ) 819 noncontrolling interestNet loss attributable to Vera (2,145 ) (414 ) (1,731 )Bradley, Inc.Diluted net loss per shareavailable to Vera Bradley, $ (0.06 ) $ (0.01 ) $ (0.05 )Inc. common shareholders Vera Bradley Direct segment $ 10,860 $ - $ 10,860 operating incomeVera Bradley Indirect segment $ 4,461 $ - $ 4,461 operating incomePura Vida segment operating $ 2,508 $ (769 ) ^1 $ 3,277 income (loss)Unallocated corporate expenses $ (19,788 ) $ - $ (19,788 ) ^1Includes the amortization of definite-lived intangible assets

Vera Bradley, Inc.First Quarter Fiscal 2021GAAP to Non-GAAP Reconciliation Thirteen Weeks Ended May 2, 2020(in thousands, except per share amounts)(unaudited) Thirteen Weeks Ended Redemption Non-GAAP As Reported Value Other (Excluding Adjustment^ Items Items) 8Gross profit (loss) $ 34,188 $ - $ (1,320 ) ^ $ 35,508 1Selling, general, and 59,782 - 8,148 ^ 51,634 administrative expenses 2Operating loss (25,574 ) - (9,468 ) (16,106 )Loss before income taxes (25,646 ) - (9,468 ) (16,178 )Income tax benefit (10,109 ) - (3,730 ) ^ (6,379 ) 3Net loss (15,537 ) - (5,738 ) (9,799 )Less: Net (loss) incomeattributable to (200 ) - (610 ) 410 redeemablenoncontrolling interestNet loss attributable to (15,337 ) - (5,128 ) (10,209 )Vera Bradley, Inc.Diluted net loss pershare available to Vera $ (0.66 ) $ (0.20 ) $ (0.15 ) $ (0.31 )Bradley, Inc. commonshareholders Vera Bradley Direct $ (10,965 ) $ - $ (5,872 ) ^ $ (5,093 )segment operating loss 4Vera Bradley Indirect ^segment operating income $ 2,756 $ - $ (387 ) 5 $ 3,143 (loss)Pura Vida segment $ (801 ) $ - $ (2,440 ) ^ $ 1,639 operating (loss) income 6Unallocated corporate $ (16,564 ) $ - $ (769 ) ^ $ (15,795 )expenses 7 ^1Related to charges for the cancellation of certain purchase orders as aresult of COVID-19^2Items include $3,806 for store impairment charges; $2,440 for theamortization of definite-lived intangible assets; $1,460 for technology-relatedre-platforming charges including certain professional fees and accelerateddepreciation; $229 for an adjustment upon payment of the earn-out liability;and $213 in certain department store exit costs as a result of COVID-19^3Related to the tax impact of the charges mentioned above^4Related to $3,806 for impairment charges; $1,146 for an allocation of chargesfor the cancellation of purchase orders; and $920 for technology re-platformingcharges^5Related to $213 in certain department store exit costs and $174 for anallocation of charges for the cancellation of purchase orders^6Related to the amortization of definite-lived intangible assets^7Related to $540 for technology re-platforming charges and $229 for anadjustment upon payment of the earn-out liability^8Related to a $6.8 million increase in the loss available to Vera Bradley,Inc. common shareholders associated with the excess portion of the ASC 480adjustment for the redeemable noncontrolling interest of Pura Vida; thisadjustment impacts the Company?s net loss per share calculations only