Vera Bradley shares rise 13.11% premarket amid early progress in Project Sunshine transformation and sequential direct sales improvement.

Vera Bradley surged 13.11% in premarket trading despite reporting a 12.3% year-over-year decline in Q3 net revenues to $62.3 million, driven by a 5.3% drop in direct revenues and a 30.2% fall in indirect sales. The rally appears linked to early progress in its Project Sunshine transformation strategy, which includes brand revitalization and operational improvements. Management highlighted sequential sequential improvements in direct channel sales, including a 5.8% comparable sales decline that followed three months of sequential improvement, as well as strong performance from iconic product relaunches like the Original 100 Bag. CEO Ian Bickley emphasized confidence in the company’s direction, citing profitability and cash generation focus, despite gross margin compression from inventory write-downs and duties. The market appears to have interpreted these strategic updates and product momentum as positive catalysts for long-term recovery.