Vera Bradley Reports FYQ27 Results: Revenue Up 1.1% to $71.6 Million

Vera Bradley, Inc. reported financial results for the second quarter of fiscal year 2027, which ended August 1, 2026. The company announced consolidated net revenues of $71.6 million, representing a 1.1% increase compared to the prior year period. This marks the second consecutive quarter of overall revenue growth for the company.

On a segment basis, the Direct segment generated $65.4 million in revenue, an increase of 8.0% year-over-year. This growth was driven by a 9.2% increase in comparable sales, attributed to improved e-commerce conversion and average transaction value. Conversely, the Indirect segment reported revenues of $6.3 million, a decrease of 39.4% compared to the prior year. This decline was driven by strategic shifts in the marketplace strategy and a reduction in liquidation sales, partially offset by improvements in specialty and department stores.

The company reported net income from continuing operations of $4.5 million, or $0.15 per diluted share, in the fiscal second quarter. This compares to a net loss of ($4.7) million, or ($0.17) per diluted share, in the prior year. On a non-GAAP basis, net income was $3.3 million, or $0.11 per diluted share. Operating income from continuing operations totaled $4.2 million, or 5.8% of net revenues, significantly improving from an operating loss of ($4.6) million in the prior year.

Vera Bradley also highlighted improvements to its balance sheet. As of August 1, 2026, the company held $34.2 million in cash and cash equivalents, a $15.7 million increase from the prior year. Inventory decreased by 28.4% to $69.3 million, driven by improved assortment planning and buy management. During the quarter, the company generated $23 million of operating cash flow and reported no debt.

Looking forward, the company reiterated its fiscal 2027 guidance. It expects sales to range between $255 million and $270 million. Management anticipates an improvement in operating loss by at least 50% compared to the prior year's loss of ($21.7) million, driven by anticipated improvements in gross profit and SG&A rates.