Vera Bradley, Inc. has unveiled a new strategic cost efficiency initiative for the upcoming fiscal year 2026, which is predicted to cut company costs by approximately 20 million dollars annually.

The announcement comes weeks after Vera Bradley’s largest shareholder, Fund 1, published a letter that it sent to the women’s accessories brand board suggesting it explores strategic alternatives to help bring it back to “its former success.”

“A critical supporting foundation of Project Restoration has been efforts to sharpen both focus and business discipline across all areas of the company,” said Jackie Ardrey, chief executive officer at Vera Bradley, in a statement. “As we prioritize resources in support of our transformation, we are streamlining business operations to restore profitability and ultimately increase shareholder value.”

The 20 million dollar business efficiency measures, which have not been outlined in detail, are expected to start early in the year, with most of the impact reflected in the company's fiscal year 2026. The company notes that these savings exclude any one-time implementation costs.

“The efficiency cost savings identified were a result of a careful and thorough review of the entire company expense structure,” added Ardey. “The result in part will drive a significant reduction of outside vendor contracts and spending, which will help our teams focus on critical business priorities.”

The anticipated efficiency savings are expected to benefit most areas of the organization, impacting both selling, general, and administrative expenses next to gross profit. Around 75 percent of the savings will support SG&A expenses, with the remaining 25 percent affecting gross profit.

The strategic cost-efficiency plans follow Vera Bradley’s transformation, launched in the summer of 2024, which included elevated products, new silhouettes, and fabrics under a new brand strategy.

The company plans to share additional fiscal year 2026 guidance in March 2025 alongside its fourth-quarter financial results.