Why did VRA's EPS fall short in Q4 2025?

The EPS of Vera Bradley Inc. (VRA) fell short in Q4 2025 due to a combination of sales decline and strategic initiatives:

1. **Sales Decline**: The most significant factor contributing to the EPS shortfall was a 25% sales decline in Q4 2025 compared to the same period the previous year. This decline was primarily driven by a decrease in specialty and key account orders, which had a direct impact on revenue.
2. **Strategic Initiatives**: Vera Bradley is currently undergoing a comprehensive strategic initiative called "Project Restoration," which is aimed at transforming the company's business model and brand positioning. While the company has seen some sequential improvement in certain areas, such as the Vera Bradley direct channel, the overall transition is taking longer than anticipated. This shift, particularly the migration of business from stores to e-commerce, has created near-term profitability headwinds.

In summary, the EPS shortfall in Q4 2025 can be attributed to a combination of lower sales and the strategic initiatives undertaken by the company, which are still in the early stages of implementation and are impacting profitability.