Vera Bradley's Q2 revenue rises on direct segment growth

By Reuters News


Overview

  • US handbag designer's fiscal Q2 revenue rose yr/yr, marking second consecutive quarter of growth

  • Company reiterated FY 2027 sales and operating margin guidance


Outlook

  • Vera Bradley sees FY 2027 sales between $255 mln and $270 mln

  • Company expects FY 2027 non-GAAP operating loss improvement of at least 50% vs prior year loss of $21.7 mln


Result Drivers

  • DIRECT SEGMENT GROWTH - Co said direct segment revenue rose 8% and comparable sales increased 9.2%, driven by improved ecommerce conversion and higher average transaction value

  • INDIRECT SEGMENT DECLINE - Co said indirect segment revenue fell 39% due to strategic shifts in marketplace strategy and reduced liquidation sales

  • TARIFF REFUNDS BOOST MARGIN - Co said gross margin rate increased due to $7.7 mln in tariff refunds received during the quarter


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q2 Revenue

Beat

$71.65 mln

$65.96 mln (1 Analyst)

Q2 Net Income

$4.50 mln


Analyst Coverage

  • The one available analyst rating on the shares is "buy"

  • The average consensus recommendation for the apparel & 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 September 14 closing price of $3.04


Reuters Recommended Reads

  • Sept 14 - Dave & Buster's Q2 revenue misses estimates on lower entertainment sales

  • Sept 14 - Children's Place Q2 net loss widens as lower traffic and clearance sales weight on results


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

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