Vera Bradley returns to profit in Q2

• Vera Bradley reported fiscal Q2 2027 revenue of $71.6 million, up 1.1% year-over-year.
• The company returned to profitability with $4.5 million in net income from continuing operations.
• Vera Bradley maintained full-year sales guidance of $255 million to $270 million.

Vera Bradley (NASDAQ:VRA) reported fiscal second-quarter 2027 consolidated net revenue of $71.6 million, up 1.1% year-over-year, and returned to profitability from continuing operations.

The company reported direct segment revenue growth of 8% to $65.4 million, while indirect revenue declined 39.4% to $6.3 million due to marketplace strategy changes and lower liquidation sales.

Gross profit increased to $42.8 million with a gross margin of 59.8%, supported by $7.7 million in tariff refunds, while operating income reached $4.2 million compared with an operating loss in the prior-year period.

Vera Bradley reiterated its fiscal 2027 outlook for revenue of $255 million to $270 million and said it expects at least a 50% improvement in its non-GAAP operating loss.

The company reduced inventory by 28.4% to $69.3 million, increased cash to $34.2 million, and reported no debt at the end of the quarter.

Vera Bradley designs and sells handbags, accessories, luggage, and lifestyle products through direct and indirect retail channels.

The company has been adjusting its marketplace strategy while focusing on direct sales growth and improving operating performance.