We are reiterating our Hold rating on Vera Bradley after the company reported slightly better than expected 3QFY26 (October) top line results (driven by continued Direct Sales improvement), while operating upside potential was offset by material inventory write-downs and the write-off of media credits; if these one-time impacts are excluded, 3QFY25 EBITDA of $0.3 million and EPS of $0.05 would have handily beat our projections. We believe the new "Operation Sunshine" program, which has brought back the core OG Vera Bradley shopper, with an emphasis on cotton fabric items, more relevant looks and brand focus, increased versatility and value and a more streamlined and cohesive shopping experience across channels, is registering key successes and providing a hint to investors of the potential to come. While we are remaining conservative due to the nascent stage of the turn, we are encouraged.