Vera Bradley CEO, CFO to Exit, Board Creates ‘Transformation' Committee
There's been a shake-up at Vera Bradley.
The Fort Wayne, Ind.-based women's accessories brand is parting ways with its chief executive officer and creating what it termed 'a comprehensive strategic initiative to transform the company's business model and brand positioning.'
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On Wednesday, the company said Jacqueline Ardrey, who joined as CEO in November 2022, would be exiting the business. Vera Bradley is searching for a successor and Ardrey will remain through the end of July to aid in the transition.
Ardrey, whose background includes president of home furnishings retailer Grandin Road and CEO of Trading Company Holdings, had instituted Project Restoration shortly after joining Vera Bradley that apparently failed to take hold.
At the same time, Ian Bickley, a current member of the board, will assume the role of executive chairman on July 7, a new position that will 'provide leadership and guidance during the CEO transition,' the company said. Bickley, who has served as president of Coach's international group as well as interim CEO of the Body Shop, will also become chairman of the board, succeeding Robert Hall, who will step down from that role but remain on the board.
Bickley's executive chairman post is expected to be temporary until a new CEO is appointed, the company said.
'Since joining the board, Ian has demonstrated a strong command of our industry in addition to the challenges of Vera Bradley's ongoing transformation,' Hall said Wednesday. 'I am grateful for Mr. Bickley's willingness to lend his extensive expertise, including in turnaround situations, to take on an executive leadership role during the CEO transition. I also want to thank Jackie for her dedication in helping position Vera Bradley for its next chapter in its transformation journey.'
Additionally, the company has hired a new chief financial officer, Martin Layding, who will join Thursday. Layding has served as a CFO in various organizations including as divisional CFO for Tapestry's Coach brand in addition to several private equity backed firms, including Supreme. The current CFO, Michael Schwindle, will leave the company on June 30 and work with Layding during the transition period.
In addition to the personnel changes, the board has established a strategy and transformation committee to work with the new leadership team on future growth. The committee will be co-led by Bickley and director Andrew Meslow, whose background includes CEO of Bath & Body Works and L Brands, who will now assume the role of lead independent director for Vera Bradley.
The changes were revealed at the same time Vera Bradley reported disappointing first-quarter results with net losses ballooning to $33.5 million from $8.1 million in the year-ago period and losses from continuing operations more than doubling to $18.3 million from $7.6 million in the prior year.
In March, the company entered into an agreement to sell its Creative Genius Inc. division, which operates under the name Pura Vida Bracelets, to Project Aster Acquisition for $1 million in cash. Vera Bradley had acquired a 75 percent stake in Pura Vida, which at the time had sales of $68.3 million, in June of 2019 for $75 million.
Sales from continuing operations fell to $51.7 million from $67.9 million in the first quarter of the prior year.
By division, Vera Bradley Direct slipped into the red in the period with operating losses of $5.5 million compared to operating income of $4 million the prior year. Revenues in this division fell 23.6 percent to $43.1 million from $56.4 million in the prior year's first quarter. Comparable-store sales dropped 25 percent.
The operating income for the company's 'indirect,' or wholesale, division was $2 million, compared to $3.8 million the prior year on a 25.6 percent decline in revenue to $8.6 million from $11.5 million the year before.
In a statement Wednesday, outgoing CEO Ardrey said: 'Our first-quarter results were disappointing as top-line and profitability trends from the previous several quarters continued. In addition to addressing consumer feedback on product styles and functionality from last summer's relaunch, we remain committed to 'being where she shops' and are working on diversification of our wholesale partnerships. While there is significant work to be done on many fronts in order to return the company's results to a stable and positive growth story, the teams are committed to doing just that.'
As a result of the management changes and the 'significant uncertainty surrounding the consumer enviroment,' the company did not provide forward guidance.
Vera Bradley was founded in 1982 and is a manufacturer of women's handbags, luggage, travel items, fashion and home accessories and gifts.
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