Vera Bradley posts negative Q2, bets on iconic styles to drive turnaround

Vera Bradley, Inc. has announced its financial results for the second quarter of its fiscal year, which ended on January 31, 2026. The company's consolidated net revenues from continuing operations for the quarter were 70.9 million dollars, a notable decrease from 94 million dollars in the same period last year.

Vera Bradley reported a net loss from continuing operations of 4.7 million dollars, or 17 cents per diluted share. On a non-GAAP basis, the second-quarter net loss was 0.5 million dollars, or 2 cents per diluted share. This compares to a non-GAAP net income of 2.6 million dollars, or 9 cents per diluted share, in the prior year's second quarter.

The decrease in revenue was driven by a 16.2 percent decline in the direct segment and a 52.5 percent drop in the indirect segment, primarily due to fewer key account orders and reduced liquidation sales. Despite the revenue decline, the company's gross profit margin improved to 50.1 percent, which was partially a result of a decrease in liquidation sales and strategic product mix changes.

According to executive chairman Ian Bickley, the company is in the early stages of a comprehensive strategy to revitalise its market position. This plan includes bringing back iconic styles like the Vera Tote and reissuing the original 100 Bag for the upcoming holiday season. The strategy is focused on re-engaging loyal customers while also attracting new segments through a disciplined focus on core brand strengths, data-driven insights, and seamless execution.

The company has also closed several underperforming stores to optimise its retail footprint. Bickley expressed confidence that these initiatives will, over time, drive sustainable growth and restore the company's competitive advantage.