Wholesale Weighs Down Pura Vida in Q4
Pura Vida’s revenue fell 3.9% to $34.1 million in Q4 due to a decrease in wholesale sales and a strategic move to eliminate steep promotions online.
Vera Bradley Inc., the company that owns Pura Vida, estimates that the reduction in promotions eliminated about $6 million in revenue during the quarter. However, gross margins improved and e-commerce sales still increased.
For the full year, Pura Vida’s revenue totaled $112.5 million. E-commerce sales grew 15%.
Vera Bradley did not provide a revenue comparison to the prior year because the company did not own the brand for the full year.
Vera Bradley helped Pura Vida diversify its supply chain by adding more raw material sourcing and three production facilities outside of El Salvador.
Pura Vida continues to focus on diversifying beyond jewelry to become more of a lifestyle brand.
For Fiscal 2022, Pura Vida’s revenue is expected to increase 20% to 30%.
Vera Bradley executives said they are looking for more digitally native brands such as Pura Vida to acquire in the future.