Vera Bradley's Q2 revenue increases to 71.6 million dollars

Luggage and fashion accessory company Vera Bradley, Inc. (Vera Bradley) has reported consolidated net revenues from continuing operations of 71.6 million dollars for the second quarter ended August 1, 2026. The figure represents a 1.1 percent increase compared to 70.9 million dollars recorded in the prior year second quarter ended August 2, 2025.

Net income from continuing operations for the three-month period reached 4.5 million dollars, or 0.15 dollars per diluted share. On a non-GAAP basis, net income totaled 3.3 million dollars, or 0.11 dollars per diluted share, improving from a non-GAAP net loss of 0.5 million dollars in the prior year second quarter.

Direct segment revenues grew 8 percent to 65.4 million dollars, up from 60.5 million dollars in the second quarter of the previous fiscal year. Comparable sales across direct channels rose 9.2 percent, supported by improved e-commerce conversion and higher average transaction values.

Direct-to-consumer expansion offsets wholesale decline

Indirect segment revenues fell 39.4 percent to 6.3 million dollars compared to 10.3 million dollars in the second quarter of the previous year. Vera Bradley attributed the drop to strategic shifts in its marketplace operations and lower liquidation sales, which were partially offset by growth in specialty and department stores.

Consolidated gross profit for the quarter reached 42.8 million dollars, representing 59.8 percent of net revenues, up from 35.5 million dollars or 50.1 percent in the prior year. The gross margin increase included 7.7 million dollars in tariff refunds relating to prior period customs entries. Excluding tariff refunds, the gross margin improved by more than 0.4 percentage points.

Operating income from continuing operations stood at 4.2 million dollars, reflecting a 1,230 basis point improvement over an operating loss of 4.6 million dollars in the second quarter of the previous fiscal year.

"I’m pleased to report that our second quarter results reflect continued momentum in our transformation," said Vera Bradley chairman and chief executive officer Ian Bickley. "This marked our second consecutive quarter of overall revenue growth, with total revenue up 1.1% versus the prior year. The underlying health of our business continued to strengthen across our direct channels, margin structure, and balance sheet."

For the full fiscal year ending January 30, 2027, Vera Bradley expects sales to range between 255 million dollars and 270 million dollars. The company also anticipates improving non-GAAP operating loss by at least 50 percent compared to the prior-year loss of 21.7 million dollars.