Vera Bradley's Q2 revenue rises on direct segment growth
VRA•Outlook reiterated for FY 2027
Vera Bradley reiterated its FY 2027 sales and operating margin guidance.
The company sees FY 2027 sales between $255 million and $270 million. It expects FY 2027 non-GAAP operating loss improvement of at least 50% versus the prior-year loss of $21.7 million.
Quarterly results and analyst view
| Metric | Beat/Miss | Actual | Consensus Estimate |
|---|---|---|---|
| Q2 Revenue | Beat | $71.65 million | $65.96 million (1 Analyst) |
| Q2 Net Income | $4.50 million |
The one available analyst rating on the shares is "buy." The average consensus recommendation for the apparel and accessories peer group is "buy." Wall Street's median 12-month price target for Vera Bradley Inc is $5.00, about 64.5% above its Sept. 14 closing price of $3.04.
Q2 revenue rises on direct segment growth
Vera Bradley's fiscal second-quarter revenue rose year over year, marking its second consecutive quarter of growth.
The US handbag designer said direct segment revenue rose 8% and comparable sales increased 9.2%, driven by improved ecommerce conversion and higher average transaction value. Indirect segment revenue fell 39% due to strategic shifts in marketplace strategy and reduced liquidation sales.
The company said gross margin rate increased due to $7.7 million in tariff refunds received during the quarter.
