Vera Bradley delays planned conversion of digital flagship to new platform
In a regulatory filing, Vera Bradley disclosed that the company has delayed the October planned conversion of its digital flagship, verabradley.com, to a new platform. As previously reported this morning, Vera Bradley was provided information by law enforcement regarding a potential data security issue related to its retail store network. The postponement is primarily related to delays in completing the integration of the new website platform with existing company systems, and a contributing factor is the data security issue since resources previously allocated to the conversion were reallocated to resolving the security issue. Because of the upcoming holiday season, the digital flagship conversion will now be launched in the first quarter of fiscal 2018. This conversion delay could impact the company's ability to generate positive comparable store sales in the fourth quarter of fiscal 2017. However, due to offsetting expense savings related to the delayed conversion, management does not expect the delay to have a material impact on diluted earnings per share for the fourth quarter or fiscal year ended January 28, 2017, the company added.