Vera Bradley (VRA) Q2 Fiscal 2027 Earnings Call: Direct Revenue Rises 8%
Source Tradingkey
Key Takeaways
- Consolidated revenue increased 1.1% year over year to $71.6 million, marking Vera Bradley’s second consecutive quarter of overall growth.
- Direct segment revenue rose 8% to $65.4 million, while comparable sales increased 9.2%. Stores, digital, full-price and outlet channels all posted positive comparable sales.
- Non-GAAP net income from continuing operations improved to $3.3 million, or $0.11 per diluted share, from a net loss of $0.5 million, or $0.02 per diluted share, a year earlier.
- Reported gross margin reached 59.8%, supported by $7.7 million of tariff refund benefits. Excluding those refunds, gross margin improved by more than 40 basis points year over year.
- Inventory declined 28.4% to $69.3 million. Quarter-end cash more than doubled to $34.2 million, and the company had no borrowings under its ABL facility.
- Management reiterated fiscal 2027 revenue guidance of $255 million to $270 million and expects a year-over-year operating result improvement of at least 50%.
Core Financial Data
| Metric | Q2 Fiscal 2027 | Q2 Fiscal 2026 | Change / Commentary |
|---|---|---|---|
| Consolidated revenue | $71.6 million | $70.9 million | Up 1.1% |
| Direct segment revenue | $65.4 million | $60.5 million | Up 8% |
| Direct comparable sales | Up 9.2% | — | All channels posted positive comps |
| Indirect segment revenue | $6.3 million | $10.3 million | Down 39%, reflecting marketplace timing changes and lower liquidation sales |
| Gross profit | $42.8 million | $35.4 million | Tariff refunds contributed $7.7 million |
| Gross margin | 59.8% | 49.9% | Up about 980 basis points due to tariff refunds; underlying margin improved more than 40 basis points |
| SG&A expense | $38.7 million | $36.3 million | Increased to 54.0% of revenue from 51.2% |
| Operating income from continuing operations | $4.3 million | Loss of $0.6 million | Margin improved to 5.9% from negative 0.8% |
| Net income from continuing operations | $3.3 million | Loss of $0.5 million | Improved by $3.8 million |
| Diluted EPS | $0.11 | Negative $0.02 | Non-GAAP |
| Cash and cash equivalents | $34.2 million | $15.2 million | More than doubled year over year |
| Inventory | $69.3 million | $96.7 million | Down 28.4% |
Business and Operating Performance
Disclaimer: For information purposes only. Past performance is not indicative of future results.
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