Greetings, and welcome to the Vera Bradley First Quarter Fiscal 2026 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Mark Dely, Chief Administrative Officer. Thank you, sir. You may begin.

Good morning, and welcome, everyone. We'd like to thank you for joining today's call. Some of the statements made during our prepared remarks and response to your questions may constitute forward-looking statements made pursuant to and within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 as amended. Such forward-looking statements are subject to both known and unknown risks and uncertainties that could cause actual results to differ materially from those that we expect. Please refer to today's press release and company's most recent Form 10-K filed with the SEC for a discussion of known risks and uncertainties. Investors should not assume that the statements made during the call will remain operative at a later time. We undertake no obligation to update any information discussed on today's call. I will now turn the call over to Vera Bradley's incoming Executive Chairman, Ian Bickley. Ian?

Thanks, Mark. Good morning, everyone. It is a pleasure to speak with all of you. I wanted to join today's call to provide you with some insight on the changes that are taking place at Vera Bradley and to discuss my role in the transition going forward. But first, on behalf of the entire Board of Directors, I want to acknowledge both Jackie and Michael for their work and dedication in helping position Vera Bradley for its next chapter on the transformation journey and thank both for their commitment to facilitating a smooth transition of leadership. We also wish them well in their future endeavors. As you heard from today's announcement, Jackie will be departing the company at the end of July. The Board of Directors has launched a nationwide search to find the next CEO. We have already seen many promising candidates and are focused on hiring the best person to drive Vera Bradley's continued transformation. In the interim, the Board believes it is important to have consistent and steady leadership and asked me to assume the role of Executive Chairman until we have a new CEO in place and ready to lead the company again. In this role, I will be working with Jackie and the management team to ensure a smooth transition. When Jackie leaves at the end of July, I will lead the company until our new CEO is on board. Concurrent with this change, the Board has announced the formation of a new Strategy and Transformation Committee. The goal of the committee is to work with the management team and incoming leadership in refining the company's strategic direction and future growth initiatives and accelerate the company's operational transformation. Director, Andrew Meslow, former CEO of Bath & Body Works, is joining me on this committee. We…

Thank you, Ian, and thank you all for joining us. I'd like to also take a moment to thank Ian and our entire Board of Directors for their support and guidance since joining in 2022. I'm also grateful for the Board's support during this transition as I step down from my leadership position. I will begin with a review of our first quarter before turning the call over to Michael to discuss the financials in greater detail. Our first quarter results came close to plan as the resonance of our comprehensive strategic initiative to transform our business model and brand positioning continues to improve. The pivots we are making are starting to resonate and the composition of our customer file is beginning to meaningfully shift. I'm particularly proud of how the organization is embracing new opportunities especially in wholesale, while we react to demand and customer feedback. While we are on the path of restoring and modernizing the Vera Bradley brand through the 4 pillars of product, brand, customer and channel, we recognize that we need to offer a better balance of new and heritage product and are working to increase our penetration of classic Vera Bradley product. We've brought back heritage styles, developed new heritage reimagined collections, increased deliveries of licensed product and returned fan favorites to the assortment. We've also addressed customer feedback about zippers, pockets and changes in strap length. We remain focused on being where she shops. We have quickly built momentum behind the strategy and are successfully diversifying our wholesale accounts with new relationships. We shipped our first order to Costco in Q1, launched on Urban Outfitters Marketplace last week, continued to deliver strong revenue increases on Target marketplace and have a healthy pipeline of new partnerships for the rest of the year, including exclusive…

Thanks, Jackie. Good morning, everyone, and thank you for joining us. I have a few brief comments to make about our performance for the quarter. As a reminder, we did complete the sale of Pura Vida during the first quarter. As a result, the operations of Pura Vida have been classified as discontinued operations in the consolidated financial statements. Prior period amounts have also been retrospectively adjusted to conform to the current period presentation. For the sake of clarity, all the numbers I am discussing today are non-GAAP and exclude the charges outlined in today's press release. A complete detail of items excluded from the non-GAAP numbers as well as a reconciliation of GAAP to non-GAAP can be found in that release. For the first quarter of 2026, our consolidated revenues totaled $51.7 million compared to $67.9 million in the prior year first quarter. On a non-GAAP basis, net loss from continuing operations for the first quarter totaled $10 million or $0.36 per diluted share compared to a net loss from continuing operations of $6.6 million last year or $0.22 per diluted share. In terms of segment performance, the Vera Bradley Direct segment revenues for the current year first quarter totaled $43.1 million, a 23.6% decrease from $56.4 million in the prior year first quarter. Comparable sales similarly declined to 25%, driven by traffic and conversion declines in our full-line and outlet stores, as Jackie mentioned, as we experienced overall channel shift from our stores to our online sites. Total revenues year-over-year were also impacted by 10 new store openings and 7 store closures since the prior year first quarter. The Vera Bradley Indirect segment revenues for the first quarter totaled $8.6 million, a 25.6% decrease from the $11.5 million in the prior year first quarter. The decrease was related…

In closing, I would like to thank the entire team at Vera Bradley for their hard work and dedication. I am proud the transformational work that we have done during my time here. And while it has taken longer than I had hoped, I believe the company is on track to deliver improved performance going forward. This concludes our call today.

Ladies and gentlemen, this does conclude today's teleconference. You may disconnect your lines at this time. Thank you for your participation, and have a wonderful day.