Vera Bradley Announces First Quarter Fiscal Year 2027 Results
Rhea-AI Summary
Vera Bradley (Nasdaq: VRA) reported first quarter Fiscal 2027 net revenues of $55.7 million, up 7.8% and the first quarterly growth since FY 2022. Net loss from continuing operations narrowed to $4.8 million ($0.17/share), or $2.5 million ($0.09/share) on a non-GAAP basis.
Non-GAAP gross margin rose to 51.8%, SG&A declined meaningfully, and operating loss improved about 74% GAAP and 76% non-GAAP. Inventory fell 26% to $73.0 million. For Fiscal 2027, Vera Bradley guides sales of $255–$270 million and expects non-GAAP operating loss to improve by at least 50% versus the prior year.
Positive
- Net revenues up 7.8% to $55.7 million, first growth since FY 2022
- Non-GAAP operating loss cut 76.1% to $3.3 million
- Gross margin improved to 51.8% from prior-year 47.5% non-GAAP
- Non-GAAP SG&A reduced to $32.7 million from $38.3 million
- Inventory reduced 26% to $73.0 million, leanest Q1 since FY 2011
- Fiscal 2027 outlook targets ≥50% non-GAAP operating loss improvement vs $21.7 million prior loss
Negative
- Company still reported a net loss of $4.8 million from continuing operations
- GAAP operating loss remains $4.6 million, or 8.3% of net revenues
- SG&A remains high at 61.3% of net revenues on a GAAP basis
- Closure of three underperforming full-line stores during the quarter
- Decision not to hold the annual outlet sale reduces Fiscal 2027 sales potential
News Market Reaction – VRA
In the Jun 11 session, VRA gained 8.81%, reflecting a notable positive market reaction. Argus tracked a peak move of +18.8% during that session. Argus tracked a trough of -5.4% from its starting point during tracking. Our momentum scanner triggered 16 alerts that day, indicating notable trading interest and price volatility. Trading volume was very high at 4.6x the daily average, suggesting strong buying interest.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| May 28 | Earnings date notice | Neutral | +3.6% | Set the June 11, 2026 release and call schedule for Q1 FY27 results. |
| Mar 12 | Quarterly earnings | Positive | +35.7% | Reported Q4 FY26 profitability on $84.9M revenue and outlined FY27 guidance. |
| Feb 26 | Earnings date notice | Neutral | +1.5% | Announced timing and access details for Q4 and FY26 earnings call. |
| Dec 11 | Quarterly earnings | Negative | -16.3% | Q3 FY26 revenue decline and losses with significant write-downs and charges. |
| Nov 26 | Earnings date notice | Neutral | +4.7% | Provided Q3 FY26 reporting date and call logistics for investors. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Earnings-related headlines have often triggered sizable moves, with most recent events showing positive price reactions, but negative results have coincided with sharp declines.
Over the past several quarters, Vera Bradley’s earnings-related news has marked key inflection points. In Dec 2025, weak Q3 results and write-downs coincided with a -16.28% move. By Mar 12, 2026, Q4 fiscal 2026 showed a return to profitability on $84.9M revenue and drove a 35.74% gain. Reporting-date announcements in Feb and May 2026 produced modest positive reactions. Today’s Q1 FY27 results extend the Fiscal 2027 guidance framework introduced in March, emphasizing revenue stabilization and operating loss improvement.
Key Terms
non-gaap financial
gaap financial
asset-based lending financial
regulation fd regulatory
AI-generated analysis. How Rhea-AI works. Not financial advice.
First quarter consolidated net revenues grew
Continued sequential progress with sales growth, margin expansion and significant profit improvement
FORT WAYNE, Ind., June 11, 2026 (GLOBE NEWSWIRE) -- Vera Bradley, Inc. (Nasdaq: VRA) (the “Company”) today announced its financial results for the first quarter of the fiscal year ending January 30, 2027 (“Fiscal 2027”).
First Quarter Comments
“I’m pleased to report that our first quarter results demonstrate continued momentum in our Project Sunshine transformation to reclaim Vera Bradley’s joyful optimism while building operational excellence,” said Ian Bickley, Chief Executive Officer of Vera Bradley. “We achieved our first quarter of overall revenue growth since Q4 FY22, marking an important inflection point in our turnaround. This achievement reflects the cumulative impact of our strategic initiatives and the hard work and commitment of our entire team.”
Bickley continued, “Our first quarter delivered strong results across multiple metrics. On a non-GAAP basis, we generated year-over-year gross margin expansion of 430 basis points, managed expenses prudently with total costs down nearly
“The progress made across the five strategic pillars of Project Sunshine validates that we’re on the right path. We successfully impacted nearly
“We are encouraged by the building momentum, and recognize that significant work remains. Based on the solid start to fiscal 2027, we now expect year-over-year non-GAAP operating loss improvement of at least
Summary of First Quarter Financial Performance
Consolidated net revenues from continuing operations totaled
Vera Bradley, Inc.’s net loss from continuing operations totaled (
In the prior year first quarter, net loss from continuing operations totaled (
First Quarter Details
Direct segment revenues totaled
Indirect segment revenues totaled
Consolidated gross profit totaled
Consolidated selling, general, and administrative (“SG&A”) expense totaled
Operating loss from continuing operations totaled (
By segment:
- Direct operating income was
$3.1 million , or6.9% of Direct net revenues, compared to an operating loss of ($5.5) million , or (12.9% ) of Direct net revenues, in the prior year. On a non-GAAP basis, Direct operating income totaled$3.5 million , or7.7% of Direct revenues, compared to an operating loss of ($2.8) million , or (6.6% ) of Direct net revenues, in the prior year. - Indirect operating income was
$4.0 million , or37.0% of Indirect net revenues, compared to$2.0 million , or23.1% of Indirect net revenues, in the prior year. On a non-GAAP basis, Indirect operating income totaled$4.1 million , or38.1% of Indirect net revenues, compared to$2.2 million , or26.1% of Indirect net revenues, in the prior year.
Balance Sheet
Cash and cash equivalents as of May 2, 2026, totaled
Total quarter-end inventory was
Net capital spending for the first quarter totaled
Fiscal Year 2027 Guidance
Excluding net revenues, all guidance-related numbers are non-GAAP. The prior year income statement numbers used in the forward-looking discussion below are also non-GAAP. Non-GAAP adjustments are discussed in the Non-GAAP Numbers section, below.
- The Company continues to focus on stabilizing the business and plans for sales to be in the range of
$255 million to$270 million . - The guided sales range reflects the impacts of the decision to not host the Company’s annual outlet sale event and rebuilding of the wholesale business under new leadership, while also placing less emphasis on liquidation channels.
- Due to continued operational focus, the Company anticipates improvements in gross profit and SG&A rates, enabling operating loss improvement by
50% or better versus the prior year loss of ($21.7) million , an improvement from previous guidance of40% or better versus the prior year loss.
Disclosure Regarding Non-GAAP Measures
Non-GAAP Numbers
The current year non-GAAP income statement numbers referenced in this document exclude charges for severance, transformation initiatives, professional fees associated with the sale of Pura Vida, consulting and professional fees primarily associated with shareholder matters, and the income tax effect related to these items. The prior year income statement numbers referenced in this document exclude the previously outlined charges for severance, property, plant, & equipment impairment charges, PO cancellation fees, professional fees associated with the sale of Pura Vida, consulting and professional fees associated with transformation initiatives and shareholder matters, inventory write-offs associated with the sale of Pura Vida, and the income tax effect related to these items.
The Company’s management does not, nor does it suggest that investors should, consider the supplemental non-GAAP financial measures in isolation from, or as a substitute for, financial information prepared in accordance with accounting principles generally accepted in the United States (“GAAP”). Further, the non-GAAP measures utilized by the Company may be unique to the Company, as they may be different from non-GAAP measures used by other companies.
The Company believes that the non-GAAP measures presented in this earnings release, including cash usage; gross profit; selling, general, and administrative expenses; operating loss from continuing operations; net loss from continuing operations; and diluted net loss from continuing operations per share, along with the associated percentages of net revenues, are helpful to investors because they allow for a more direct comparison of the Company’s year-over-year performance and are consistent with management’s evaluation of business performance. A reconciliation of the non-GAAP measures to the most directly comparable GAAP measures can be found in the Company’s supplemental schedules included in this earnings release.
Consistent with SEC regulations, the Company has not provided a reconciliation of forward-looking non-GAAP financial measures to the most directly comparable GAAP financial measures in reliance on the “unreasonable efforts” exception set forth in the applicable regulations, because there is substantial uncertainty associated with predicting any future adjustments the Company may make to its GAAP financial measures in calculating non-GAAP financial measures.
Call Information
A conference call to discuss results for the first quarter financial results is scheduled for today, Thursday, June 11, 2026, at 8:30 a.m. Eastern Time. A live webcast of the conference call will be available on the Company’s website, Investor Relations | Vera Bradley Designs Inc. Alternatively, interested parties may dial into the call at (877) 407-0779. A replay will be available shortly after the conclusion of the call and remain available through June 25, 2026. To access the recording, listeners should dial (844) 512-2921 and enter the access code 13760261.
About Vera Bradley, Inc.
Vera Bradley, based in Fort Wayne, Indiana, is a leading designer of women’s handbags, luggage and other travel items, fashion and home accessories, and unique gifts. Founded in 1982 by friends Barbara Bradley Baekgaard and Patricia R. Miller, the brand is known for its innovative designs, iconic patterns, and brilliant colors that inspire and connect women unlike any other brand in the global marketplace.
The Company has two reportable segments: Direct and Indirect. The Direct business consists of sales of products through Vera Bradley Full-Line and Outlet stores in the United States; Vera Bradley’s websites, www.verabradley.com, www.verabradleyoutlet.com, and international.verabradley.com; direct to consumer marketplaces; and typically (but not in fiscal 2027), the Vera Bradley annual outlet sale in Fort Wayne, Indiana. The Indirect business consists of sales of Vera Bradley products to approximately 1,200 specialty retail locations throughout the United States, as well as select department stores, national accounts, and third-party inventory liquidators; and royalties recognized through licensing agreements related to the Vera Bradley brand.
Website Information
We routinely post important information for investors on our website www.verabradley.com in the “Investor Relations” section. We intend to use this webpage as a means of disclosing material, previously non-public information and for complying with our disclosure obligations under Regulation FD. Accordingly, investors should monitor the Investor Relations section of our website, in addition to following our press releases, SEC filings, public conference calls, presentations and webcasts. The information contained on, or that may be accessed through, our webpage is not incorporated by reference into, and is not a part of, this document.
Investors and other interested parties may also access the Company’s most recent Corporate Responsibility and Sustainability Report outlining its ESG (Environmental, Social, and Governance) initiatives at https://verabradley.com/pages/corporate-responsibility.
Vera Bradley Safe Harbor Statement
Certain statements in this release are “forward-looking statements” made pursuant to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements reflect the Company’s current expectations or beliefs concerning future events and are subject to various risks and uncertainties that may cause actual results to differ materially from those that we expected, including: possible adverse changes in general economic conditions and their impact on consumer confidence and spending; possible inability to predict and respond in a timely manner to changes in consumer demand; possible loss of key management or design associates or inability to attract and retain the talent required for our business; possible inability to maintain and enhance our brands; possible inability to successfully implement the Company’s long-term strategic plan; possible inability to successfully open new stores, close targeted stores, and/or operate current stores as planned; incremental tariffs or adverse changes in the cost of raw materials and labor used to manufacture our products; possible adverse effects resulting from a significant disruption in our distribution facilities; or business disruption caused by pandemics or other macro factors. More information on potential factors that could affect the Company’s financial results is included from time to time in the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of the Company’s public reports filed with the SEC, including the Company’s Form 10-K for the fiscal year ended January 31, 2026. We undertake no obligation to publicly update or revise any forward-looking statement. Financial schedules are attached to this release.
| Vera Bradley, Inc. Condensed Consolidated Balance Sheets (in thousands) (unaudited) | ||||||||||||
| May 2, 2026 | January 31, 2026 | May 3, 2025 | ||||||||||
| Assets | ||||||||||||
| Current assets: | ||||||||||||
| Cash and cash equivalents | $ | 12,506 | $ | 18,513 | $ | 11,281 | ||||||
| Accounts receivable, net | 17,296 | 17,301 | 14,588 | |||||||||
| Inventories | 73,018 | 75,951 | 99,151 | |||||||||
| Short-term contingent consideration | 1,835 | 1,605 | 1,374 | |||||||||
| Income taxes receivable | 312 | 317 | 323 | |||||||||
| Prepaid expenses and other current assets | 6,500 | 6,034 | 8,829 | |||||||||
| Total current assets | 111,467 | 119,721 | 135,546 | |||||||||
| Operating right-of-use assets | 58,642 | 63,233 | 71,236 | |||||||||
| Property, plant, and equipment, net | 44,795 | 46,358 | 51,193 | |||||||||
| Long-term contingent consideration | — | 230 | 1,178 | |||||||||
| Other assets | 4,339 | 4,463 | 8,787 | |||||||||
| Total assets | $ | 219,243 | $ | 234,005 | $ | 267,940 | ||||||
| Liabilities and Shareholders’ Equity | ||||||||||||
| Current liabilities: | ||||||||||||
| Accounts payable | $ | 9,186 | $ | 16,235 | $ | 23,221 | ||||||
| Accrued employment costs | 7,502 | 5,394 | 6,033 | |||||||||
| Short-term operating lease liabilities | 18,073 | 18,620 | 18,556 | |||||||||
| Other accrued liabilities | 10,103 | 10,185 | 11,634 | |||||||||
| Income taxes payable | 130 | 16 | 59 | |||||||||
| Total current liabilities | 44,994 | 50,450 | 59,503 | |||||||||
| Long-term operating lease liabilities | 47,198 | 51,914 | 62,357 | |||||||||
| Other long-term liabilities | 2 | 2 | 46 | |||||||||
| Total liabilities | 92,194 | 102,366 | 121,906 | |||||||||
| Shareholders’ equity: | ||||||||||||
| Additional paid-in-capital | 116,399 | 116,152 | 116,098 | |||||||||
| Retained earnings | 167,614 | 172,439 | 186,819 | |||||||||
| Accumulated other comprehensive loss | (144 | ) | (132 | ) | (63 | ) | ||||||
| Treasury stock | (156,820 | ) | (156,820 | ) | (156,820 | ) | ||||||
| Total shareholders’ equity | 127,049 | 131,639 | 146,034 | |||||||||
| Total liabilities and shareholders’ equity | $ | 219,243 | $ | 234,005 | $ | 267,940 | ||||||
| Vera Bradley, Inc. Condensed Consolidated Statements of Operations (in thousands, except per share amounts) (unaudited) | ||||||||
| Thirteen Weeks Ended | ||||||||
| May 2, 2026 | May 3, 2025 | |||||||
| Net revenues | $ | 55,702 | $ | 51,652 | ||||
| Cost of sales | 26,871 | 28,885 | ||||||
| Gross profit | 28,831 | 22,767 | ||||||
| Selling, general, and administrative expenses | 34,128 | 40,804 | ||||||
| Other income, net | 649 | 180 | ||||||
| Operating loss from continuing operations | (4,648 | ) | (17,857 | ) | ||||
| Interest (expense) income, net | (65 | ) | 4 | |||||
| Loss from continuing operations before income taxes | (4,713 | ) | (17,853 | ) | ||||
| Income tax expense | 112 | 407 | ||||||
| Net loss from continuing operations | $ | (4,825 | ) | $ | (18,260 | ) | ||
| Loss from discontinued operations, net of income tax | — | (15,200 | ) | |||||
| Net loss | $ | (4,825 | ) | $ | (33,460 | ) | ||
| Basic weighted-average shares outstanding | 28,121 | 27,773 | ||||||
| Diluted weighted-average shares outstanding | 28,121 | 27,773 | ||||||
| Basic net loss per share: | ||||||||
| Continuing operations | $ | (0.17 | ) | $ | (0.66 | ) | ||
| Discontinued operations | $ | — | $ | (0.54 | ) | |||
| Basic net loss per share | $ | (0.17 | ) | $ | (1.20 | ) | ||
| Diluted net loss per share: | ||||||||
| Continuing operations | $ | (0.17 | ) | $ | (0.66 | ) | ||
| Discontinued operations | $ | — | $ | (0.54 | ) | |||
| Diluted net loss per share | $ | (0.17 | ) | $ | (1.20 | ) | ||
| Vera Bradley, Inc. Condensed Consolidated Statements of Cash Flows (in thousands) (unaudited) | ||||||||
| Thirteen Weeks Ended | ||||||||
| May 2, 2026 | May 3, 2025 | |||||||
| Cash flows from operating activities | ||||||||
| Net loss | $ | (4,825 | ) | $ | (33,460 | ) | ||
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
| Depreciation of property, plant, and equipment | 1,793 | 2,188 | ||||||
| Amortization of operating right-of-use assets | 4,931 | 5,328 | ||||||
| Impairment charges | — | 1,048 | ||||||
| Provision for doubtful accounts | 38 | — | ||||||
| Stock-based compensation | 1,005 | 754 | ||||||
| Loss on sale of business | — | 15,200 | ||||||
| Other non-cash loss, net | 2 | 14 | ||||||
| Changes in assets and liabilities: | ||||||||
| Accounts receivable | (33 | ) | (1,405 | ) | ||||
| Inventories | 2,933 | (7,379 | ) | |||||
| Prepaid expenses and other assets | (342 | ) | (733 | ) | ||||
| Accounts payable | (6,939 | ) | 4,314 | |||||
| Income taxes | 119 | 320 | ||||||
| Operating lease liabilities, net | (5,603 | ) | (6,060 | ) | ||||
| Accrued and other liabilities | 1,671 | 1,969 | ||||||
| Net cash used in operating activities | (5,250 | ) | (17,902 | ) | ||||
| Cash flows from investing activities | ||||||||
| Purchases of property, plant, and equipment | (333 | ) | (1,871 | ) | ||||
| Proceeds from sale of business, net of cash disposed | — | 903 | ||||||
| Net cash used in investing activities | (333 | ) | (968 | ) | ||||
| Cash flows from financing activities | ||||||||
| Tax withholdings for equity compensation | (412 | ) | (171 | ) | ||||
| Borrowings under asset-based revolving credit agreement | — | (5,000 | ) | |||||
| Repayment of borrowings under asset-based revolving credit agreement | — | 5,000 | ||||||
| Net cash used in financing activities | (412 | ) | (171 | ) | ||||
| Effect of exchange rate changes on cash and cash equivalents | (12 | ) | (44 | ) | ||||
| Net decrease in cash and cash equivalents | $ | (6,007 | ) | $ | (19,085 | ) | ||
| Cash and cash equivalents, beginning of period | 18,513 | 30,366 | ||||||
| Cash and cash equivalents, end of period | $ | 12,506 | $ | 11,281 | ||||
| Vera Bradley, Inc. First Quarter Fiscal 2027 GAAP to Non-GAAP Reconciliation Thirteen Weeks Ended May 2, 2026 (in thousands, except per share amounts) (unaudited) | |||
| Thirteen Weeks Ended | |||
| Net loss from continuing operations | $ | (4,825 | ) |
| Severance(1) | 1,117 | ||
| Transformation initiatives(1) | 159 | ||
| Professional fees associated with sale of Pura Vida(1) | 94 | ||
| Consulting and professional fees(1) | 27 | ||
| Income tax adjustments(2) | 974 | ||
| Net loss from continuing operations - Non-GAAP | (2,454 | ) | |
| Diluted net loss per share from continuing operations - Non-GAAP | $ | (0.09 | ) |
| (1)Recorded in selling, general, and administrative ("SG&A") expenses | |||
| (2)Adjusted net loss from continuing operations and adjusted diluted EPS are calculated using a statutory tax rate of | |||
| Thirteen Weeks Ended | |||||||||||||
| Direct | Indirect | Unallocated Corporate Expenses | Total | ||||||||||
| Operating income (loss) from continuing operations | $ | 3,107 | 4,009 | $ | (11,764 | ) | $ | (4,648 | ) | ||||
| Severance | 334 | 117 | 666 | 1,117 | |||||||||
| Transformation initiatives | 9 | 2 | 148 | 159 | |||||||||
| Professional fees associated with sale of Pura Vida | — | — | 94 | 94 | |||||||||
| Consulting and professional fees | — | — | 27 | 27 | |||||||||
| Operating income (loss) from continuing operations - Non-GAAP | $ | 3,450 | $ | 4,128 | $ | (10,829 | ) | $ | (3,251 | ) | |||
| Vera Bradley, Inc. First Quarter Fiscal 2026 GAAP to Non-GAAP Reconciliation Thirteen Weeks Ended May 3, 2025 (in thousands, except per share amounts) (unaudited) | |||
| Thirteen Weeks Ended | |||
| Net loss from continuing operations | $ | (18,260 | ) |
| PPE impairment charges(1) | 1,048 | ||
| PO cancellation fees(2) | 986 | ||
| Professional fees associated with sale of Pura Vida(1) | 976 | ||
| Consulting and professional fees(1) | 721 | ||
| Severance(1) | 290 | ||
| Inventory write-off associated with sale of Pura Vida(2) | 250 | ||
| Income tax adjustments(4) | 3,938 | ||
| Net loss from continuing operations - Non-GAAP | (10,051 | ) | |
| Diluted net loss per share from continuing operations - Non-GAAP | $ | (0.36 | ) |
| (1)Recorded in SG&A expenses | |||
| (2)Recorded in cost of goods sold | |||
| (3) | |||
| (4)Adjusted net loss from continuing operations and adjusted diluted EPS are calculated using a statutory tax rate of | |||
| Thirteen Weeks Ended | ||||||||||||||
| Direct | Indirect | Unallocated Corporate Expenses | Total | |||||||||||
| Operating (loss) income from continuing operations | $ | (5,536 | ) | 1,980 | $ | (14,301 | ) | $ | (17,857 | ) | ||||
| PPE Impairment charges | 1,048 | — | — | 1,048 | ||||||||||
| PO cancellation fees | 847 | 139 | — | 986 | ||||||||||
| Professional fees associated with sale of Pura Vida | — | — | 976 | 976 | ||||||||||
| Consulting and professional fees | 584 | 78 | 59 | 721 | ||||||||||
| Severance | 15 | — | 275 | 290 | ||||||||||
| Inventory write-off associated with sale of Pura Vida | 214 | 36 | — | 250 | ||||||||||
| Operating (loss) income from continuing operations - Non-GAAP | $ | (2,828 | ) | $ | 2,233 | $ | (12,991 | ) | $ | (13,586 | ) | |||
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/f18c4a34-6982-49c8-a050-ce7627499ed0
CONTACTS: Investors: Tom Filandro, Partner ICR, Inc VeraBradleyIR@icrinc.com Media: VeraBradley@icrinc.com