# Vera Bradley (VRA) Q2 2026 Financial Results Summary
On September 11, 2025, Vera Bradley, Inc. (Nasdaq: VRA) announced its financial results for the second quarter of the fiscal year ending January 31, 2026 (“Fiscal 2026”). Below is a summary of the company’s financial performance during this period.
## Summary of Financial Performance for Q2 2026
– **Consolidated Net Revenues**:
– $70.9 million, down **24.4%** from **$94.0 million** in Q2 2025.
– **Net Loss from Continuing Operations**:
– ($4.7 million), or ($0.17) per diluted share.
– Compared to a net income of **$7.5 million** or **$0.25 per diluted share** in the prior year’s quarter. This reflects a change of **162.7%**.
– **Non-GAAP Net Loss from Continuing Operations**:
– ($0.5 million), or ($0.02) per diluted share.
– **Direct Segment Revenues**:
– $60.5 million, a decrease of **16.2%** from **$72.2 million** in the same quarter last year.
– Comparable store sales decreased by **17.3%**.
– **Indirect Segment Revenues**:
– $10.3 million, down **52.5%** from **$21.8 million** in the prior year quarter.
– **Gross Profit**:
– $35.5 million, comprising **50.1%** of net revenues vs. **49.7%** of net revenues a year prior. This reflects a slight increase in gross margin of **0.4%**.
– **Selling, General, and Administrative (SG&A) Expense**:
– $40.4 million, or **57.1%** of net revenues, compared to **47.3%** in Q2 2025.
– Non-GAAP SG&A expenses totaled $36.3 million, or **51.2%** of net revenues.
– **Operating Loss from Continuing Operations**:
– ($4.6 million), or **(6.5%)** of net revenues. Compared to an operating income of $2.4 million, or **2.5%** of net revenues, in Q2 2025.
– **Operating Income by Segment**:
– **Direct Segment**:
– $9.3 million, or **15.4%** of Direct net revenues vs. **18.6%** (prior year).
– **Indirect Segment**:
– $2.2 million, or **21.2%** of Indirect net revenues vs. **21.8%** (prior year).
## Summary for Six Months Ended (First Half of Fiscal 2026)
– **Consolidated Net Revenues**:
– $122.5 million, down **24.4%** from **$162.0 million** in the same period last year.
– **Net Loss from Continuing Operations**:
– ($23.0 million), or ($0.82) per diluted share, compared to a loss of ($0.1 million), or ($0.00) per diluted share, in the previous year.
– **Non-GAAP Net Loss from Continuing Operations**:
– ($10.6 million), or ($0.38) per diluted share.
– **SG&A Expense**:
– $81.2 million, translating to **66.3%** of net revenues, compared to **55.3%** in the prior period.
– **Operating Loss from Continuing Operations**:
– ($22.4 million), or **(18.4%)** of net revenues, compared to ($8.2 million), or **(5.0%)** in H1 2025.
## Cash and Balance Sheet Highlights
– **Cash and Cash Equivalents**:
– $15.2 million as of August 2, 2025, compared to **$29.3 million** at the end of Q2 2025.
– **Total Quarter-End Inventory**:
– $96.7 million, down from **$111.4 million** at the end of the previous year’s quarter.
– The company had **$10.0 million** of borrowings against its **$75.0 million** asset-based lending facility, no borrowings a year ago.
## Dividend and Share Repurchase
– There was **no declaration of a quarterly dividend** or mention of any share repurchase during this period.
## Key Takeaways
– Vera Bradley faced substantial revenue declines both in the second quarter and the first half of Fiscal 2026 compared to the previous year.
– Management is focusing on product innovation and a comprehensive revamp of its strategy to improve brand engagement and reach new customer segments.
– The company’s financial metrics reflect significant operating losses amidst restructuring efforts and declining sales.
### Vera Bradley, Inc.
### Condensed Consolidated Statements of Operations
(in thousands, except per share amounts)
| Thirteen Weeks Ended | Twenty-Six Weeks Ended | |||
|---|---|---|---|---|
| August 2, 2025 | August 3, 2024 | August 2, 2025 | August 3, 2024 | |
| Net revenues | $70,858 | $94,003 | $122,510 | $161,951 |
| Cost of sales | 35,361 | 47,294 | 64,246 | 81,202 |
| Gross profit | 35,497 | 46,709 | 58,264 | 80,749 |
| Selling, general, and administrative expenses | 40,442 | 44,449 | 81,246 | 89,544 |
| Other income, net | 353 | 133 | 533 | 571 |
| Operating (loss) income from continuing operations | -4,592 | 2,393 | -22,449 | -8,224 |
| Interest (expense) income, net | -134 | 219 | -130 | 689 |
| (Loss) income from continuing operations before income taxes | -4,726 | 2,612 | -22,579 | -7,535 |
| Income tax (benefit) expense | -17 | -4,915 | 390 | -7,458 |
| Net (loss) income from continuing operations | $-4,709 | $7,527 | $-22,969 | $-77 |
| Income (loss) from discontinued operations, net of income tax | 37 | -1,821 | -15,163 | -2,338 |
| Net (loss) income | $-4,672 | $5,706 | $-38,132 | $-2,415 |
| Basic weighted-average shares outstanding | 27,935 | 29,290 | 27,854 | 29,972 |
| Diluted weighted-average shares outstanding | 27,935 | 29,817 | 27,854 | 29,972 |
| Basic net (loss) income per share: Continuing operations | $-0.17 | $0.26 | $-0.82 | $— |
| Discontinued operations | $— | $-0.07 | $-0.55 | $-0.08 |
| Basic net (loss) income per share | $-0.17 | $0.19 | $-1.37 | $-0.08 |
| Diluted net (loss) income per share: Continuing operations | $-0.17 | $0.25 | $-0.82 | $— |
| Discontinued operations | $— | $-0.06 | $-0.55 | $-0.08 |
| Diluted net (loss) income per share | $-0.17 | $0.19 | $-1.37 | $-0.08 |
### Vera Bradley, Inc.
### Condensed Consolidated Balance Sheets
(in thousands)
| August 2, 2025 | February 1, 2025 | August 3, 2024 | |
|---|---|---|---|
| Assets | |||
| Current assets: | |||
| Cash and cash equivalents | $15,184 | $28,628 | $29,288 |
| Accounts receivable, net | 16,983 | 13,797 | 22,844 |
| Inventories | 96,685 | 91,430 | 111,357 |
| Short-term contingent consideration | 1,694 | — | — |
| Income taxes receivable | 444 | 584 | 8,695 |
| Prepaid expenses and other current assets of discontinued operations | 9,463 | 8,072 | 13,284 |
| Total current assets | 140,453 | 164,872 | 223,455 |
| Operating right-of-use assets | 66,876 | 74,841 | 59,609 |
| Property, plant, and equipment, net | 49,357 | 52,555 | 54,167 |
| Long-term contingent consideration | 858 | — | — |
| Deferred income taxes | — | — | 5,732 |
| Other assets | 8,632 | 9,048 | 9,919 |
| Long-term assets of discontinued operations | — | 5,374 | 26,332 |
| Total assets | $266,176 | $306,690 | $379,214 |
| Liabilities and Shareholders’ Equity | |||
| Current liabilities: | |||
| Accounts payable | $21,127 | $17,198 | $36,391 |
| Accrued employment costs | 7,242 | 6,527 | 5,882 |
| Short-term operating lease liabilities | 17,814 | 19,024 | 16,853 |
| Other accrued liabilities | 11,541 | 9,221 | 13,488 |
| Income taxes payable | — | — | 170 |
| Current liabilities of discontinued operations | — | 6,023 | 5,546 |
| Total current liabilities | 57,724 | 57,993 | 78,330 |
| Long-term debt | 10,000 | — | — |
| Long-term operating lease liabilities | 57,919 | 66,307 | 54,750 |
| Other long-term liabilities | 47 | 47 | 44 |
| Long-term liabilities of discontinued operations | — | 3,388 | 3,556 |
| Total liabilities | 125,690 | 127,735 | 136,680 |
| Shareholders’ equity: | |||
| Additional paid-in-capital | 115,286 | 115,515 | 113,503 |
| Retained earnings | 182,147 | 220,279 | 280,052 |
| Accumulated other comprehensive loss | -127 | -19 | -72 |
| Treasury stock | -156,820 | -156,820 | -150,949 |
| Total shareholders’ equity | 140,486 | 178,955 | 242,534 |
| Total liabilities and shareholders’ equity | $266,176 | $306,690 | $379,214 |
