Vera Bradley Reports Q2 Revenue Growth and Returns to Profitability
Vera Bradley (NASDAQ: VRA) reported a return to profitability in the second quarter of fiscal 2027, with non-GAAP net income reaching $3.3 million compared to a loss of $0.5 million in the same period last year. Revenue increased slightly by 1.1% to $71.6 million, driven primarily by strong performance in its direct-to-consumer segment. Direct revenue rose 8% to $65.4 million and comparable sales grew 9.2%, although store count reductions reduced overall growth by about 100 basis points. In contrast, indirect channel revenue fell sharply due to strategic changes in marketplace timing and fewer liquidation sales. The company plans to rebuild its wholesale business with an internal sales team. Vera Bradley also improved liquidity, reducing inventory by 28.4% while increasing cash reserves to $34.2 million without any borrowings. Management reaffirmed full-year revenue guidance of between $255 million and $270 million for fiscal 2027.
Tickers: $VRA