VRA

Vera Bradley, Inc. VRA used its first-quarter fiscal 2027 earnings call to reinforce a message that has been building for several quarters: the retailer believes its turnaround efforts are beginning to gain traction. Management pointed to the company’s first quarter of year-over-year revenue growth since fiscal 2022, improving margins, stronger customer engagement and a higher full-year profit outlook as evidence that its Project Sunshine transformation is gaining momentum. Chief executive officer Ian Bickley described the quarter as an important turning point for the business. The company reported a loss of 9 cents per share, narrower than the Zacks Consensus Estimate of a loss of 33 cents, delivering a surprise of 72.7%. Revenues of $55.7 million topped the Zacks Consensus Estimate of $49.1 million by 13.4%. Vera Bradley, Inc. price-consensus-eps-surprise-chart | Vera Bradley, Inc. Quote Bickley emphasized that the company’s progress extended beyond revenue growth. Non-GAAP gross margin expanded 430 basis points, while operating loss improved roughly $10 million year over year. A central theme of the call was management’s effort to restore the brand’s historical identity. Bickley said Vera Bradley had influenced nearly 80% of its spring assortment, up from about 20% in the prior quarter. Management highlighted stronger demand for cotton-based products, heritage styles and refreshed prints. The company also reported its first first-quarter customer growth in direct channels since calendar 2021. Several product launches resonated with shoppers. Bickley cited strong demand for the Winnie the Pooh collection, the Roxbury Bag and the revival of legacy products, which helped attract both loyal customers and younger consumers. Strategic partnerships emerged as another major discussion point. The company highlighted collaborations with Bath & Body Works and Target as successful customer acquisition tools. According to management, approximately 80% of consumers who engaged through those collaborations were new to Vera Bradley’s social channels. Executives said the partnerships generated significant customer engagement and increased interest from potential collaborators. The wholesale channel also showed signs of stabilization. Indirect revenues increased 26.6% year over year, aided by specialty retailers, department stores and strategic partnerships. Bickley noted stronger sell-through at department stores and increasing engagement from wholesale accounts. Management also pointed to a new back-to-school capsule collection launched in 89 Nordstrom locations and online as part of broader efforts to rebuild wholesale distribution. Executives repeatedly stressed improvements in digital execution and customer engagement. Bickley said the company has integrated consumer research more deeply into product development and marketing decisions. Management discussed the use of customer segmentation, in-home research, AI-driven product testing and Gen Z focus groups to guide assortment planning. The company also hired a new head of digital commerce with experience at Adidas, Talbots and Crocs. Management believes that leadership addition will help expand marketplace opportunities and improve digital profitability. Marketing efforts have shifted toward a social-first approach. Bickley highlighted campaigns that generated stronger engagement while operating with lower marketing spending, helping support margin expansion. Chief operating and financial officer Martin Layding attributed much of the quarter’s profitability improvement to disciplined cost management. Non-GAAP SG&A expense fell $5.6 million year over year, reflecting personnel reductions, optimized marketing spending, store closures and lease renegotiations. The balance sheet also improved. Inventory declined 26% to $73 million, representing the company’s leanest first-quarter inventory position since fiscal 2011. Operating cash flow improved significantly from the prior-year period, and Vera Bradley ended the quarter with no borrowings on its asset-based lending facility. Layding said lower promotional activity, favorable sales mix and reduced freight and duty costs contributed to the company’s margin gains. Management maintained fiscal 2027 revenue guidance of $255 million to $270 million but increased its profitability expectations. The company now expects non-GAAP operating loss improvement of at least 50% versus the prior year, compared with its previous target of at least 40% improvement. Executives cautioned that quarterly progress may not be linear and cited ongoing consumer pressures, including inflation and fuel costs. Still, management expressed confidence that continued gross margin gains and cost controls can support better operating performance throughout the year. During the analyst Q&A, a Small Cap Consumer Research analyst focused on the upcoming back-to-school season. Bickley characterized the period as a critical opportunity for the brand and indicated that substantial preparation has gone into product, marketing and execution plans designed to strengthen customer acquisition and engagement. VRA currently carries a Zacks Rank #3 (Hold). Under the Zacks framework, a Rank #3 generally indicates balanced earnings estimate trends and a more neutral near-term outlook compared with higher-ranked stocks. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. The stock's Style Scores show a Value Score of D, Growth Score of C, Momentum Score of B and VGM Score of D. Zacks research indicates that stronger Style Scores, particularly A or B grades combined with a Zacks Rank #1 or #2 (Buy), have historically produced better performance. Investors should also note that the Zacks Rank can change as analysts revise earnings estimates following the company’s latest results. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Vera Bradley, Inc. (VRA) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

This article first appeared on GuruFocus. Revenue: $55.7 million, up from $51.7 million in the prior year first quarter. Gross Margin: Expanded by 430 basis points to 51.8%. Net Loss: Improved 75% to negative $2.5 million, or negative $0.09 per diluted share, from $10.1 million last year. Operating Loss: Improved to negative $3.3 million from negative $13.6 million in the prior year. Direct Segment Revenue: Increased 4.1% to $44.9 million. Indirect Segment Revenue: Increased 26.6% to $10.8 million. Comparable Sales: Increased 13.4% in the Direct segment. SG&A Expense: Reduced by $5.6 million to $32.7 million, a 1540 basis point improvement as a percent of net revenues. Cash and Cash Equivalents: $12.5 million at the end of the quarter. Inventory: Decreased 26% year-over-year to $73 million. Cash Flow: Improved 68% to negative $6 million from negative $19.1 million in the prior year first quarter. Warning! GuruFocus has detected 3 Warning Signs with VRA. Is VRA fairly valued? Test your thesis with our free DCF calculator. Release Date: June 11, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Vera Bradley Inc (NASDAQ:VRA) achieved a return to positive year-on-year growth of nearly 8%, marking the first quarter of overall revenue growth since Q4 FY22. The company reported a year-over-year gross margin expansion of 430 basis points to 51.8%, reflecting improved operational efficiency. Vera Bradley Inc (NASDAQ:VRA) reduced its year-over-year inventory by 26%, leading to improved operating cash flow by $12.7 million, a 70% improvement over last year. The indirect segment revenue grew approximately 26.6% year-over-year, driven by improved performance in specialty and department store accounts and strategic wholesale partnerships. The company successfully launched strategic collaborations with Bath & Body Works and Target, which attracted new customers and generated significant brand engagement. Despite the positive growth, Vera Bradley Inc (NASDAQ:VRA) still faces significant work to increase market share and return to long-term sustainable growth. The indirect segment's growth was partly due to key account collaborations, and excluding this benefit, the growth would have been approximately flat year over year. The company is facing consumer headwinds from higher inflation and fuel prices, which could impact future performance. Vera Bradley Inc (NASDAQ:VRA) reported a net loss from continuing operations for the first quarter, although it improved 75% compared to the previous year. The company closed 14 stores since the prior year first quarter, impacting total revenues year-over-year. Q: What are the key strategies for Vera Bradley's back-to-school season, and how is the company preparing for it? A: Ian Bickley, Executive Chairman and CEO, highlighted that back-to-school is a critical period for Vera Bradley. The company is focusing on stronger backpack innovation and better inventory positioning. They are starting promotions three weeks earlier than last year and have developed a strong assortment around personalization and small bags, targeting Gen Z customers. Additionally, they are introducing teacher totes in the outlet channel and expanding distribution with a back-to-school capsule in 89 Nordstrom locations. Q: Are you opening new outlet stores or converting existing ones to the Outlet 2.0 model? A: Ian Bickley confirmed that Vera Bradley is opening four new outlet stores. The focus is on improving the productivity of existing stores rather than opening many new ones. The Outlet 2.0 model is being refined, and while improved retail KPIs have been observed, the company is still in the testing phase before a broader rollout. Q: How should we think about inventory levels and the impact of tariffs going forward? A: Martin Layding, CFO, stated that inventory levels are expected to remain in the $60 million to $75 million range. The company is focusing on improving inventory turnover and working through project restoration inventory. Regarding tariffs, Vera Bradley has applied for refunds, and the tariff rate is expected to decrease, reducing pressure on margins. Q: What is the potential for expanding the Outlet 2.0 model, and how does it impact returns? A: Ian Bickley explained that the biggest opportunity lies in improving the productivity of existing outlet stores. The Outlet 2.0 model is still being refined, and while it shows promise in improving retail KPIs, the company is cautious and continues to test and learn before a substantial rollout. The goal is to enhance brand image and experience, especially in areas without brand or wholesale locations. Q: How is Vera Bradley addressing consumer headwinds such as inflation and fuel prices? A: Ian Bickley acknowledged the challenging consumer environment but expressed confidence in Vera Bradley's positioning for back-to-school as a necessary purchase occasion. The company is cautiously optimistic and believes it can be a go-to resource for consumers during this period. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Image source: The Motley Fool. Thursday, June 11, 2026 at 8:30 a.m. ET Chairman & Chief Executive Officer — Ian Bickley Chief Financial Officer — Martin Layding Chief Administrative Officer — Mark Dely Operator Greetings. Welcome to Vera Bradley's first quarter fiscal 2027 earnings conference call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Please note this conference is being recorded. I will now turn the conference over to Mark Dely, Chief Administrative Officer. Thank you. You may begin. Mark Dely Good morning, and welcome everyone. We'd like to thank you for joining us for today's call. Some of the statements made during our prepared remarks and in response to your questions may constitute forward-looking statements made pursuant to and within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 as amended. Such forward-looking statements are subject to both known and unknown risks and uncertainties that could cause actual results to differ materially from those that we expect. Please refer to today's press release and the company's most recent filed Form 10-K filed with the SEC for a discussion of known risks and uncertainties. Investors should not assume that the statements made during the call will remain operative at a later time. We undertake no obligation to update any information discussed on today's call. I would now like to turn the call over to Vera Bradley's Chairman and Chief Executive Officer, Ian Bickley. Ian? Ian Bickley Good morning, everyone, and thank you for joining us for Vera Bradley's first quarter fiscal 2027 earnings call. I am pleased to report that our first quarter results demonstrate continued momentum in our Project Sunshine transformation journey to reclaim Vera Bradley's joyful optimism while building operational excellence across the business. We made meaningful progress across multiple fronts that give us confidence in the path forward. Most notably, following a clear trajectory of sequential improvement, our first quarter achieved a return to positive year-on-year growth of nearly 8%, marking our first quarter of overall revenue growth since Q4 FY 2022. This achievement marks an important inflection point in our turnaround, reflecting the cumulative impact of our strategic initiatives and the hard work and commitment of our entire team. Our first quarter performance was not solely a top-line story. On a non-GAAP basis, we generated year-over-year gross margin expansion of 430 basis points to 51.8% and continued to manage expenses prudently, with total costs down $5.6 million compared to the prior year, or a favorable decline of nearly 15%. This fueled a year-over-year improvement in our operating loss of $10 million or 76%. We achieved these results while reducing our year-over-year inventory by 26% and improving our operating cash flow for the period by $12.7 million, or a 70% improvement over last year. Based on the solid start to the new fiscal year, we are now expecting our year-over-year non-GAAP operating loss improvement to be at least 50%. Although we have much work to do, I am very pleased with our first quarter performance. We still have a tremendous opportunity to increase market share and return the business to long-term sustainable growth, profitability, and cash flow generation. The improvements we achieved this quarter provide a strong foundation as we continue executing the five strategic pillars of our transformation. Before providing more details on our first quarter performance, I want to personally thank the entire Vera Bradley team for their focus, adaptability, and passion during this pivotal transformation. The progress we are making across our strategic initiatives is a direct result of their exceptional commitment and dedication to reclaiming Vera Bradley's joyful optimism while building operational excellence across every function. Overall sales for the first quarter were up 7.8% versus Q1 of the prior year, with growth across nearly all channels of distribution. We achieved strong sequential improvement in our direct segment with revenue growth of 4.1% compared to the prior year, representing our fourth consecutive quarter of sequential improvement. This performance is building confidence in our teams and reinforces that the direction we are taking is resonating with our consumers. Our indirect segment revenue grew approximately 26.6% year-over-year, driven by improved performance in our specialty and department store accounts, as well as shipments related to strategic wholesale partnerships, including Target. We are seeing stabilization in our existing specialty retail accounts and stronger sell-through in department stores, notably Dillard's, which is very encouraging. It is important to note our indirect segment benefited from several key account collaborations. Excluding this benefit, our indirect channel growth would have been approximately flat year-over-year, which still represents meaningful stabilization in this channel. We are seeing significantly higher levels of interest and engagement with both existing and new wholesale accounts, which is further validation that our product and marketing efforts are yielding excitement and interest beyond our direct channels, giving us confidence in the future wholesale growth pipeline. During the quarter, we continued to strategically manage our pricing and promotional cadence to drive sell-through of aged inventory while expanding gross margins year-over-year. We are pleased with the discipline our team demonstrated in balancing inventory clearance with margin enhancement, and we continue to make progress working through the remaining discontinued product from Project Restoration. Now let me provide an update on our continued progress across the five strategic pillars of Project Sunshine. Pillar one, sharpening our brand focus. As I have shared on previous calls, we had lost sight of what made Vera Bradley distinctive and beloved by our customers. We had become less differentiated in the marketplace and too dependent on promotional activity. Sharpening our brand focus is fundamentally about bringing our unique brand positioning back to life through compelling product, authentic storytelling, and strategic distribution choices. Since taking on a leadership role one year ago, our primary emphasis has been on driving the relevancy of our product offering. Building on the 20% influence we had on the assortment in Q4, we successfully impacted nearly 80% of the spring collection, and I'm pleased with the positive response and strong engagement from customers. In addition to the positive sales trend, this was the first Q1 with year-over-year customer growth in our direct channels since calendar 2021. For back-to-school season and moving forward, 100% of our assortment will be influenced by the work we have done collectively over the past year. Very exciting considering we are in the early stages of recouping customers across all our channels. Customers clearly responded to our focused product strategies, which drove the results. We leaned into cotton as a material, which is now returning to historic levels of importance. We reintroduced beloved heritage styles and prints in addition to fresh, innovative designs. We focused on more impactful IP collections with more qualitative design and execution. We successfully won back many of our loyal customers and fans, while at the same time engaging with a new generation of customers. Across the business, our cotton material performance nearly doubled versus prior year. In brand, our Winnie the Pooh collection was a huge success, strongly selling through in less than two weeks. At the same time, six of our top 10 non-IP products were new styles, with the small beaded Roxbury bag at $150 and the original 100 Bag over-indexing with Gen Z customers. Our iconic duffle in both IP and heritage prints, like Cambridge Blue, was a winner across generations. In outlet, colorful, fun beach and spring prints, as well as the Stitch and Honeydukes IP product resonated across cohorts, while the return of Vera Originals re-engaged many of our longtime fans. The product changes we've implemented remain firmly rooted in the brand attributes that define our DNA. Vera Bradley is feminine, creative, cheerful, whimsical, joyful, fun, colorful, approachable, high quality, and smart value. To amplify the substantial product progress we've made, we're now intensifying our marketing efforts to drive engagement through an enhanced, cohesive, social-first marketing approach, focused brand storytelling with product as hero, and a unified brand framework consistent across all channels, all designed to connect with both our loyal customer base and new audiences. From a creative perspective, under new marketing leadership and leveraging our core brand attributes, we developed and launched a new spring campaign that embodies our return to joyful optimism and authentic Vera Bradley character, including our cut-through Cherry On Top campaign in brand and Strawberry Girl Summer in outlet. This refreshed creative went live across our website, in stores, email marketing channels, and social media platforms, where we saw improved productivity and higher customer engagement on lower marketing spend. Our Bespoke 100 Bag campaign was also a first, demonstrating our ability to elevate Vera Bradley in social and cultural conversation. Teased on social media, over 30,000 people queued up online for the release of 52 Bespoke 100 bags, ranging in price from $95 to $145, which were sold out in less than 3 minutes. This activation generated significant buzz, built our social footprint, and created a halo impact for our iconic 100 Bag, which we subsequently featured in our Meet the Icons campaign in social and online. Beyond product and marketing, we're also concentrating on our distribution channels to sharpen brand focus and extend our reach. Let me highlight the importance of our wholesale strategy and partnerships within our overall distribution. While the wholesale landscape has evolved significantly, we firmly believe that thoughtfully rebuilding this channel with the right partners is essential to regaining brand relevance and expanding market share. Under new wholesale leadership, our retail partners are realizing meaningful year-over-year margin expansion, underscoring improved assortment productivity, and healthier full price sell-throughs. Strong performance is being driven by elevated print execution and the reintroduction of iconic legacy styles, reinforcing brand equity and accelerating wholesale growth. In addition to stronger sell-through performance and increased open-to-buys with key department store and specialty accounts, we've also been encouraged by the growing recognition of our brand momentum from leading retail partners. On June 1st, we launched a focused back-to-school Vera Bradley capsule collection in 89 Nordstrom doors and on nordstrom.com for the first time. Of significant note this quarter were the success of our strategic collaborations with Bath & Body Works and Target. These collaborations represent the kind of high-impact partnerships that drive buzz and expose the brand to new audiences. The collaborations ignited strong user-generated content and customer engagement. Approximately 80% of consumers who engaged with us through these collaborations were new to Vera Bradley's social channels, demonstrating the power of these strategic partnerships in generating brand heat, growing our social footprint, and attracting new customers. The success of these partnerships has also generated additional inbound interest in future collaborations, which we are now exploring. The progress we're making in sharpening our brand focus across product, marketing, and channels validates that we're on the right path, and we remain committed to this strategic direction as a cornerstone of our transformation. Turning to our second pillar, resetting our go-to-market approach. As we've shared previously, we've been fundamentally transforming how we work to deliver what our customers truly need and value, focusing on six critical areas: concentrated investments in hero products and bigger ideas, strategic channel assortment alignment, social-first integrated marketing supporting key moments like back to school, enhanced planning and inventory management to drive improved turns, disciplined pricing and promotion governance to enhance margins, and strengthened analytics and business intelligence capabilities to enable better data-informed decision-making. Our objective has been to rebuild the operational engine that converts our creativity into measurable commercial success while fostering a more integrated and agile way of working. In Q1, we saw continued evidence that this reimagined approach is positively influencing our business performance. The team has advanced its cross-functional collaboration, examining and refining how we operate from product development through buying, marketing, and channel execution, ensuring our products reach customers through their preferred shopping venues and experiences. At the top of the funnel, we've now deeply embedded consumer insights into our operating rhythm through comprehensive customer research and segmentation work, including in-home ethnographic studies, AI digital twins to product test across customer segments during the product development phase, and Gen Z focus groups for co-creating our assortments. These insights are actively shaping product development decisions from silhouette selection to print development, helping us address customer needs and preferences more precisely. Operationally, we've demonstrated greater agility in Q1, leveraging real-time data to optimize promotions, marketing initiatives, and digital communications to meet evolving customer needs. These data-driven approach contributed to the strong 430 basis point gross margin expansion we experienced in Q1, while also enabling continued inventory management discipline. For Q1, we executed a streamlined promotional plan that was more focused and less complex to implement, which we believe contributed to our margin performance. Our marketing and data analytics teams have been working on building a single connected customer journey enabled by a unified customer data platform, email service provider, and SMS ecosystem. Powered by predictive AI analytics, this connectivity is aimed at driving a significantly higher level of personalized customer engagement across channels. We're also making strides in how we approach our go-to-market timeline. Our design and development teams are now engaging with factory partners much earlier in the process, which is enabling us to streamline our overall go-to-market calendar. One benefit is that we were able to have our first-ever sample line for pre-market, allowing for account order validation prior to Vera Bradley's investing in buys for our wholesale accounts. Additionally, we've aligned our wholesale buying cycles with standard market practices by transitioning to four seasons from two, bringing us in sync with how the accessories industry operates and making it easier for wholesale partners to work with us. Overall, we're encouraged by the operational progress we've made and the increasing effectiveness of our integrated approach. The foundation we're building through resetting our go-to-market approach with a centralized calendar, aligned milestones, and clear owners for decision-making is strengthening our ability to translate creative vision into commercial results while working with greater speed, efficiency, and collaboration across the organization. Turning to our third pillar, rewiring our digital ecosystem. Our digital-Commerce business across owned sites and third-party marketplaces represents a significant and highly profitable component of Vera Bradley's overall business. Historically, our various digital platforms have not delivered a cohesive, seamless customer journey. We've been working to fundamentally transform this, building on the organizational changes we made in Q4, where we consolidated the P&Ls of all digital platforms, including DTC e-commerce and third-party marketplace operations. I'm pleased to announce that our new head of digital commerce joined the team on May 4th. This leader brings exceptional credentials and relevant experience, having built significant digital businesses and operations for multiple brands, including Adidas, Talbots, and Crocs. His expertise in scaling digital commerce businesses on existing platforms like Amazon and Target, as well as emerging platforms like TikTok Shop, will be instrumental as we execute our integrated digital strategy and drive future growth and profitability. Under this new leadership, we're taking a comprehensive approach to optimizing our digital ecosystem. We continue to enhance our e-commerce platform with improved site navigation and an elevated overall customer experience. Our data-driven approach to pricing and promotions has enabled us to operate with reduced promotional intensity while sustaining strong customer engagement and improved margins. We've also deployed enhanced digital capabilities designed to drive deeper customer engagement and streamline the path to purchase. The progress we're making in rewiring our digital ecosystem, from organizational integration to platform enhancements to strategic marketplace positioning, is strengthening our ability to meet customers where they are. Delivering compelling digital experiences drives profitable growth through our digital channels. We were proud this year to have been named the Target Plus 2025 Partner of the Year on their marketplace. Moving to our fourth pillar, Outlet 2.0. As a reminder, our Outlet 2.0 initiative represents a strategic transformation in how we approach our outlet channel. This initiative is designed to create an elevated customer experience while preserving our smart value proposition and extending our reach to customers in markets where we don't currently operate brand stores. The enhancements we've implemented include a more curated and focused assortment with an initial 35% SKU reduction while strategically incorporating new brand products from our heritage collections and select IP collaborations. We've introduced elevated visual merchandising standards and elements throughout the stores that drive greater category clarity and enable easier customer navigation, including mannequins, light boxes, and brand fixtures that showcase our signature use of color, pattern, and lifestyle storytelling. Our enhanced selling experience incorporates updated training programs and improved in-store tools that enable our teams to deliver better selling support and personalization for our customers. This transformation is moving us towards a more engaged, curated experience that reinforces brand equity while simultaneously driving conversion and profitability. Under a newly appointed visual experience leader, we're building on the pilot program we launched during the holiday season while maintaining a disciplined test-and-learn approach. We continue to see encouraging results that not only validate this direction but inspire us to be bolder in our approach. Beyond the positive qualitative feedback that we're receiving from both customers and store employees, we're observing measurable improvements across key retail performance indicators. This sustained momentum demonstrates that the Outlet 2.0 experience is resonating with consumers and creating a more meaningful brand engagement, which we believe we can build upon. Looking ahead, we're planning to open four new outlet stores while evaluating enhancements to this strategy as we approach holiday. Our approach remains measured and data-driven, ensuring we capture learnings from each conversion to optimize the model before broader implementation. Importantly, through Q1, our outlet channel has now achieved four consecutive months of positive comparable sales growth. Finally, turning to our fifth pillar, reimagining how we work. Streamlining our organization while strategically building and investing in new capabilities. We are rebuilding Vera Bradley for long-term sustainable growth and profitability. We are fundamentally redesigning our organization to be future-ready, cultivating new capabilities and making deliberate investments in talent that will drive our transformation forward. In summary, we are endgame by our first quarter results and the continued progress we are making across all five pillars of Project Sunshine. The sequential improvement we have achieved over multiple quarters validates that our strategic direction is gaining traction and represents the right path forward to revitalize the Vera Bradley brand, expand market share, and return the business to long-term sustainable growth, profitability, and cash flow generation. We're building a best-in-class team with relevant experience and proven track records that will enable us to move with speed and win in the marketplace. We're reimagining how we work, fostering a culture of performance, agility, accountability, and strong cross-functional collaboration while leveraging data-driven insights to make intelligent decisions that drive our business forward. We are stabilizing our business and gaining better visibility into underlying growth and efficiency opportunities. While we still have significant work ahead, we are encouraged by the momentum we are building and the alignment and commitment of our entire team. With that, I will turn the call over to Marty for a detailed financial review, and then we'll be happy to take your questions. Martin Layding Thanks, Ian. Good morning, everyone, and thank you for joining us. For the sake of clarity, all of the numbers I am discussing today are non-GAAP and exclude the charges outlined in today's press release. A complete detail of items excluded from the non-GAAP numbers, as well as a reconciliation of GAAP to non-GAAP, can be found in that release. We are pleased to report continued sequential improvement in both our direct and indirect segments as our strategic initiatives demonstrate results. We delivered meaningful margin improvements in both gross margin and SG&A leverage, driven by lower promotional levels and disciplined expense management. For the first quarter of fiscal 2027, our consolidated revenues totaled $55.7 million, compared to $51.7 million in the prior year first quarter. Net loss from continuing operations for the first quarter improved 75%, totaling negative $2.5 million, or negative $0.009 per diluted share, compared to $10.1 million last year, or negative $0.36 per diluted share. In terms of segment performance, Vera Bradley direct segment revenues increased 4.1% to $44.9 million from $43.1 million in the prior year first quarter. Comparable sales increased 13.4%, which represents the fourth quarter of sequential comparable sales improvement. Positive growth was driven by improved e-commerce conversion and higher average ticket across all channels, as well as increased traffic in our outlet and full line stores. Total revenues year-over-year were also impacted by 14 store closures since the prior year first quarter. Vera Bradley indirect segment revenues increased 26.6% to $10.8 million from $8.6 million in the prior year first quarter. The increase was driven by improvements in specialty and department stores, while custom-made order sales enabled continued growth across key accounts. First quarter gross profit totaled $28.8 million, or 51.8% of net revenues, compared to $24.6 million, or 47.5% of net revenues in the prior year. The 430 basis point increase in year-over-year margin rate resulted from favorable sales mix and lower freight and duty costs. SG&A expense totaled $32.7 million, or 58.8% of net revenues, compared to $38.3 million, or 74.2% of net revenues for the prior year first quarter, a reduction of $5.6 million and 1,540 basis points improvement as a percent of net revenues. The decrease in expense was primarily due to cost optimization initiatives begun in fiscal 2025, which are enabling lower personnel costs, optimized marketing spend, which allows us to reduce and rephase spending throughout the year and reduce lease costs through store closures and renegotiations. First quarter operating loss from continued operations totaled negative $3.3 million, or negative 5.8% of net revenues, compared to negative $13.6 million, or negative 26.3% of net revenues in the prior year. Overall, we are pleased with the sequential progress we are making across both segments, which reinforces that we are on the right path. Now turning to the balance sheet. Cash and cash equivalents at the end of the quarter totaled $12.5 million, compared to $11.3 million at the end of last year's first quarter. Cash flow for the first quarter, while negative, improved 68% to negative $6 million versus negative $19.1 million in the prior year first quarter. We had no borrowings on our ABL facility at quarter end. First quarter inventory decreased 26% year-over-year to $73 million, compared to $99.2 million at the end of first quarter of fiscal 2026, representing the company's leanest first quarter inventory position since fiscal 2011. The decrease is driven by improved assortment planning, buy management, and sales performance, as well as the $5.3 million Project Restoration inventory reserve. For fiscal 2027, we continue to plan for sales to be in the range of $255 million-$270 million as we remain focused on stabilizing the direct business and rebuilding our wholesale business under new leadership, while at the same time placing less emphasis on liquidation channels. Although we are encouraged by our sales growth in the first quarter of fiscal 2027, we see consumer headwinds from higher inflation and more specifically, fuel prices, creating some friction we will be working to overcome. We are raising our operating performance improvement to be at least 50% from 40% due to expected full year gross margin improvement and continued diligence around cost management. We expect quarter-to-quarter improvement to be uneven. In closing, the Vera Bradley team has delivered an excellent start to our fiscal year, demonstrating agility, creativity, and strong execution. While we still have work ahead of us, we are confident in our strategic direction and our ability to drive sustainable profit growth over time. Now I will open the call to your questions. Operator? Operator Thank you. If you would like to ask a question, please press star one on your telephone keypad. Our first question is from Eric Beder with SCC Research. Please proceed. Eric Beder Good morning. Congratulations on the quarter. Martin Layding Thank you. Ian Bickley Thank you, Eric. Eric Beder Let's talk about back to school. It's a big piece for you guys. Historically, it expands the consumer base by a lot. What should we be seeing and what should your Vera Bradley customers be seeing here as this rolls out, and what are the key touch points that we're going to focus on and we should be focusing on as the rest of us for it? Ian Bickley Thanks, Eric. Great question. Thank you for your comments on the quarter, which we obviously are very pleased with. As you pointed out, back to school for us and the second quarter is really a critical quarter for Vera Bradley. I think we all firmly believe that it's a moment and an occasion that this brand can really authentically own. Together with our teams, we've put a lot of emphasis into the preparation for back to school. Just to give you a few examples, on the product front, I believe we have much stronger backpack innovation, in addition to actually being much better positioned in our core backpack inventory. Last year, despite the strong results we had, we actually had a tremendous number of out-of-stocks in our core colors in the backpacks. Secondly, we are starting our back to school promotion three weeks earlier than we did last year. We think the back to school momentum is building much sooner in the cycle, and we prepared ourselves for that this year. We also have developed a very strong assortment around personalization as well as an expanded small bag assortment that we believe will particularly resonate with our Gen Z customers. We also are promoting what we are calling teacher totes, and that's primarily in our outlet channel. Beyond that, we're also going to have significant new distribution with the rollout in Nordstrom to 89 locations, which is basically a whole back to school capsule. It's going to, I think, give us significant additional reach with new consumers that may not be able to purchase Vera Bradley today. I think those are just a few of the examples, I think overall, we are feeling well-prepared and cautiously optimistic. Obviously, we have to be realistic about the overall environment for consumers out there right now, which is definitely we're facing some headwinds. However, we think back to school as an occasion that people are going to need to purchase for, and I think Vera Bradley can position itself as a go-to resource. Eric Beder Great. Speaking about the outlet and the Outlet 2.0, you mentioned opening. I just want to confirm this. Are you opening four new outlet stores or converting four more outlets to Outlet 2.0 stores? Ian Bickley No, we are opening four new outlet stores. Eric Beder Okay. What is the potential to expand the Outlet 2.0 beyond the seven to nine that you're testing right now? What do you see as the longer term in terms of their ability to generate better returns than the outlet stores? Ian Bickley Yeah. Great question. First of all, I think if we think about the outlet channel, the biggest opportunity for us is to improve the productivity of our existing stores. Not to go out and open a bunch of new outlet stores. That's something which we are doing very opportunistically and where we see opportunities from a distribution perspective. The real opportunity is really on driving same-store sales growth in our outlet locations. Which are, from a productivity standpoint, significantly off where they were during the peak. With regards to Outlet 2.0, we're continuing to really refine the model. We definitely have seen improved retail KPIs in our Outlet 2.0 stores, but we are still making adjustments and want to have a much higher degree of certainty before really doing a more substantial rollout. I think we're continuing to really take a test-to-learn approach with different things. I think if we can really hit Outlet 2.0, we'll be a significant contributor to how we close the gap on productivity in our outlet locations. In addition to, I think also enhancing the overall brand image and experience with customers across the fleet, because as you know, one of the rationales for Outlet 2.0 is that we have outlet stores in a lot of places where we don't have coverage, either by wholesale or by brand locations. Eric Beder Right. Marty, how should we be thinking about the inventories going forward? How are tariffs flowing into all of this? Thank you. Martin Layding With regard to inventories going forward, we still see opportunities to improve turn, and we continue to focus on working through the Project Restoration inventory that we have on hand. We'll see further reductions with that. Then investing back in styles for the core business going forward, as we see lift off on consumption with those. I think we'll continue to be in this $60 million-$75 million range is the I think where we're going to land from an inventory standpoint. With regard to tariffs, we have applied for refunds just like everybody else, based on what was paid. Year-over-year, we're seeing the absolute rate with the Supreme Court decision drop from 19%-15%, and currently they're communicating a 10%-12.5% rate under the Section 301 tariffs that will probably take effect. We should see less pressure from tariffs on margins going forward, based on what we know today. Eric Beder Great. Thank you. Good luck with back to school and the rest of the year. Martin Layding Thank you. Ian Bickley Thanks, Eric. Operator There are no further questions at this time. This will conclude today's conference. You may disconnect at this time. Thank you for your participation. 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This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Vera Bradley (VRA) Q1 2027 Earnings Transcript was originally published by The Motley Fool

Interested in Vera Bradley, Inc.? Here are five stocks we like better. Vera Bradley returned to year-over-year revenue growth in fiscal Q1, with sales up 7.8% to $55.7 million and the net loss narrowing sharply to $2.5 million from $10.1 million a year ago. Management called it an “important inflection point” in its Project Sunshine turnaround. Margins improved and costs fell, with gross margin rising to 51.8% from 47.5% and SG&A dropping to 58.8% of revenue from 74.2%. Inventory also fell 26% year over year to $73 million, the leanest first-quarter level since fiscal 2011. Both direct and wholesale channels showed growth, led by stronger e-commerce conversion, higher ticket sizes, and increased wholesale shipments tied to partnerships such as Target and Nordstrom. The company kept its full-year sales outlook at $255 million to $270 million and raised its expected operating improvement to at least 50%. Beyond the Vision Pro: 3 Augmented Reality Small Caps to Watch Vera Bradley (NASDAQ:VRA) reported a return to year-over-year revenue growth in the first quarter of fiscal 2027, with management pointing to improving product traction, tighter inventory control and lower expenses as signs that its turnaround plan is gaining momentum. Chairman and Chief Executive Officer Ian Bickley said the company’s first-quarter performance marked “an important inflection point” in its Project Sunshine transformation plan. Overall sales rose 7.8% from the prior-year period, which Bickley said was the company’s first quarter of overall revenue growth since the fourth quarter of fiscal 2022. → Uranium Energy Corp Melts Down—Nuclear Opportunity at Hand On a non-GAAP basis, Chief Operating Officer and Chief Financial Officer Martin Layding said consolidated revenue totaled $55.7 million, compared with $51.7 million in the prior-year quarter. The net loss from continuing operations improved to $2.5 million, or $0.009 per diluted share, compared with a loss of $10.1 million, or $0.36 per diluted share, a year earlier. Vera Bradley’s non-GAAP gross profit was $28.8 million, or 51.8% of net revenue, compared with $24.6 million, or 47.5% of net revenue, in the prior-year quarter. Layding attributed the 430-basis-point improvement to favorable sales mix and lower freight and duty costs. → Cybersecurity Earnings: 1 AI Standout and 2 Stocks Under Pressure SG&A expense declined to $32.7 million, or 58.8% of net revenue, from $38.3 million, or 74.2% of net revenue, in the prior-year period. Layding said the decrease reflected cost optimization initiatives that began in fiscal 2025, lower personnel costs, optimized marketing spending, and reduced lease costs from store closures and renegotiations. First-quarter operating loss from continuing operations improved to $3.3 million, or 5.8% of net revenue, compared with a loss of $13.6 million, or 26.3% of net revenue, a year earlier. → An Analyst Just Raised Tesla's Price Target by 227%—Here's Why Vera Bradley’s direct segment revenue increased 4.1% to $44.9 million from $43.1 million in the prior-year first quarter. Comparable sales rose 13.4%, which Layding said represented the fourth consecutive quarter of sequential comparable sales improvement. Growth was driven by improved e-commerce conversion, higher average ticket across channels and increased traffic in outlet and full-line stores. Total revenue was affected by 14 store closures since the prior-year quarter. The indirect segment posted stronger growth, with revenue increasing 26.6% to $10.8 million from $8.6 million. Bickley said the improvement was driven by specialty and department store accounts and shipments tied to strategic wholesale partnerships, including Target. He noted that excluding key account collaborations, indirect channel growth would have been approximately flat year over year, which he described as “meaningful stabilization.” Bickley also cited stronger sell-through in department stores, including Dillard’s, and said Vera Bradley is seeing higher interest from existing and new wholesale accounts. The company also launched a back-to-school capsule collection in 89 Nordstrom stores and on nordstrom.com on June 1. Bickley said the first pillar of Project Sunshine is sharpening Vera Bradley’s brand focus after the company had become less differentiated and too reliant on promotions. He said the company influenced nearly 80% of the spring collection, up from 20% of the assortment in the fourth quarter, and that 100% of the assortment for back-to-school and beyond will reflect the work completed over the past year. The company said cotton material performance nearly doubled from the prior year. Bickley highlighted the Winnie the Pooh collection, which he said sold through strongly in less than two weeks, and said six of the top 10 non-IP products were new styles. He also pointed to the small beaded Roxbury bag at $150 and the original 100 Bag as products that over-indexed with Gen Z customers. Vera Bradley also used social and collaboration-driven marketing to increase engagement. Bickley said more than 30,000 people queued online for the release of 52 Bespoke 100 bags priced from $95 to $145, which sold out in less than three minutes. He also said collaborations with Bath & Body Works and Target generated user content and brought new consumers to the company’s social channels, with approximately 80% of consumers who engaged through those collaborations being new to Vera Bradley’s social channels. Vera Bradley ended the quarter with $12.5 million in cash and cash equivalents, compared with $11.3 million at the end of the prior-year first quarter. The company had no borrowings on its ABL facility at quarter end. Inventory declined 26% year over year to $73 million from $99.2 million. Layding said this represented the company’s leanest first-quarter inventory position since fiscal 2011. He attributed the reduction to improved assortment planning, buy management, sales performance and the $5.3 million Project Restoration inventory reserve. During the question-and-answer session, Layding said the company continues to see opportunities to improve inventory turns while working through remaining Project Restoration inventory. He said inventory is expected to land in a range of $60 million to $75 million. For fiscal 2027, Vera Bradley continues to expect sales in the range of $255 million to $270 million. Layding said the company remains focused on stabilizing the direct business, rebuilding wholesale under new leadership and placing less emphasis on liquidation channels. The company raised its expected improvement in operating performance to at least 50%, up from 40%, citing expected full-year gross margin improvement and continued cost management. Layding cautioned that quarter-to-quarter improvement is expected to be uneven and noted consumer headwinds from higher inflation and fuel prices. In response to a question about back-to-school, Bickley said the period is a critical quarter for Vera Bradley and an occasion the brand can “authentically own.” He cited stronger backpack innovation, better inventory in core backpack colors, an earlier promotional start, personalization, an expanded small-bag assortment for Gen Z customers and “teacher totes” in outlet stores. Vera Bradley also plans to open four new outlet stores. Bickley said the larger outlet opportunity is improving productivity in existing stores rather than broad expansion, and that the company is continuing to refine its Outlet 2.0 concept through a test-and-learn approach. Vera Bradley, Inc (NASDAQ: VRA) is a lifestyle and accessories designer specializing in colorful, patterned handbags, luggage, travel accessories and coordinated home décor. Founded in 1982 by Barbara Bradley Baekgaard and Patricia R. Miller, the company first gained recognition for its quilted cotton bags sold at craft shows before expanding into an established fashion brand. Headquartered in Fort Wayne, Indiana, Vera Bradley has built a reputation for distinctive prints and functional design aimed primarily at women's casual and travel needs. The company's product portfolio includes day bags, weekenders, backpacks, wallets, and organizational cases, as well as an expanding range of travel gear such as rolling luggage and travel pouches. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Vera Bradley Q1 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for June 2026.

First quarter consolidated net revenues grew 7.8% to $55.7 million; represents the first quarter of growth since Fiscal 2022 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 15%, and improved our operating loss by $10 million, or 76%. We achieved these results while reducing year-over-year inventory by 26% and improving operating cash flow by $12.7 million, a 70% improvement.” “The progress made across the five strategic pillars of Project Sunshine validates that we’re on the right path. We successfully impacted nearly 80% of the spring collection, and Q1 was the first quarter of customer growth in our direct channels since calendar 2021. Our strategic collaborations with Bath and Body Works and Target ignited strong engagement, with approximately 80% of customers who engaged through these partnerships being new to Vera Bradley.” “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 50%. We remain committed to returning the business to long-term sustainable growth, profitability, and cash flow generation,” concluded Bickley. Summary of First Quarter Financial Performance Consolidated net revenues from continuing operations totaled $55.7 million, compared to $51.7 million in the prior year first quarter ended May 3, 2025. Vera Bradley, Inc.’s net loss from continuing operations totaled ($4.8) million, or ($0.17) per diluted share. On a non-GAAP basis, net loss from continuing operations totaled ($2.5) million, or ($0.09) per diluted share. In the prior year first quarter, net loss from continuing operations totaled ($18.3) million, or ($0.66) per diluted share. On a non-GAAP basis, net loss from continuing operations totaled ($10.1) million, or ($0.36) per diluted share. First Quarter DetailsDirect segment revenues totaled $44.9 million, a 4.1% increase from $43.1 million in the prior year first quarter. Comparable sales increased 13.4%, driven by improved ecommerce conversion and improved average ticket, as well as increased traffic in outlet and full-line stores. During the first quarter, the Company closed three underperforming full-line stores. Indirect segment revenues totaled $10.8 million, a 26.6% increase from $8.6 million in the prior year first quarter. The increase was driven by improvement in specialty and department stores, while cut-to-order sales enabled continued growth across key accounts. Consolidated gross profit totaled $28.8 million, or 51.8% of net revenues, compared to $22.8 million, or 44.1% of net revenues, in the prior year. On a non-GAAP basis, prior year consolidated gross profit totaled $24.6 million, or 47.5% of net revenues. The increase in year over year margin rate resulted from overall favorable sales mix, as well as lower freight and duty costs. Consolidated selling, general, and administrative (“SG&A”) expense totaled $34.1 million, or 61.3% of net revenues, compared to $40.8 million, or 79.0% of net revenues, in the prior year. On a non-GAAP basis, consolidated SG&A expense totaled $32.7 million, or 58.8% of net revenues, compared to $38.3 million, or 74.2% of net revenues, in the prior year. The decrease in non-GAAP SG&A expense resulted from cost optimization that began in fiscal 2025, which is enabling lower personnel costs and optimized marketing spend, allowing us to reduce and rephase spending throughout the year, as well as reduced lease costs through store closures and favorable lease negotiations. Operating loss from continuing operations totaled ($4.6) million, or (8.3%) of net revenues, compared to ($17.9) million, or (34.6%) of net revenues, in the prior year first quarter – a 74.0% reduction. On a non-GAAP basis, operating loss from continuing operations totaled ($3.3) million, or (5.8%) of net revenues, compared to ($13.6) million, or (26.3%) of net revenues, in the prior year first quarter – a 76.1% reduction. By segment: Direct operating income was $3.1 million, or 6.9% 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, or 7.7% 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, or 37.0% of Indirect net revenues, compared to $2.0 million, or 23.1% of Indirect net revenues, in the prior year. On a non-GAAP basis, Indirect operating income totaled $4.1 million, or 38.1% of Indirect net revenues, compared to $2.2 million, or 26.1% of Indirect net revenues, in the prior year. Balance SheetCash and cash equivalents as of May 2, 2026, totaled $12.5 million compared to $11.3 million at the end of last year’s first quarter. The Company had no borrowings on its asset-based lending (“ABL”) facility at quarter end. Total quarter-end inventory was $73.0 million, a 26% reduction, compared to $99.2 million at the end of last year’s first quarter and represents the Company’s leanest first quarter inventory position since fiscal 2011. The decrease is driven by improved assortment planning, buy management, and sales performance, as well as the $5.3 million Project Restoration inventory reserve. Net capital spending for the first quarter totaled $0.3 million compared to $1.9 million in the prior year and was driven by store relocations that occurred in the prior year period. Fiscal Year 2027 GuidanceExcluding 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 of 40% or better versus the prior year loss. Disclosure Regarding Non-GAAP Measures Non-GAAP NumbersThe 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 InformationA 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. A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/f18c4a34-6982-49c8-a050-ce7627499ed0 CONTACT: CONTACTS: Investors: Tom Filandro, Partner ICR, Inc [email protected]  Media: [email protected]

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Achieved a return to positive year-over-year revenue growth of nearly 8%, marking the first overall growth quarter since Q4 FY 2022 and a key inflection point in the turnaround. Expanded non-GAAP gross margins by 430 basis points to 51.8% through disciplined pricing and a shift away from heavy promotional dependency. Successfully influenced 80% of the spring collection with new brand standards, leading to the first Q1 year-over-year customer growth in direct channels since 2021. Stabilized the indirect segment with 26.6% growth, driven by high-impact collaborations with Target and Bath & Body Works that attracted approximately 80% new-to-brand social audiences. Re-emphasized the brand's heritage by doubling cotton material performance and reintroducing iconic styles that resonated across both loyalists and Gen Z customers. Reduced total costs by nearly 15% and improved operating loss by 76% through rigorous expense management and cost optimization initiatives. Leveraged data-driven consumer insights, including AI digital twins and ethnographic studies, to align product development more closely with customer preferences. Raised the target for year-over-year non-GAAP operating loss improvement to at least 50%, up from the previous 40% projection. Anticipates 100% of the assortment will be influenced by Project Sunshine strategic work starting with the upcoming back-to-school season. Maintains full-year revenue guidance of $255 million to $270 million, accounting for potential consumer headwinds from inflation and fuel prices. Plans to open four new outlet stores while continuing to refine the 'Outlet 2.0' model to drive same-store productivity and brand elevation. Expects inventory levels to stabilize in the $60 million to $75 million range as the company balances clearance of discontinued items with investments in core styles. Reduced year-over-year inventory by 26% to $73 million, representing the leanest Q1 inventory position since fiscal 2011. Closed 14 stores since the prior year first quarter as part of a strategic footprint optimization and lease renegotiation effort. Transitioned wholesale buying cycles from two seasons to four to align with industry standards and improve partner ease-of-doing-business. Identified potential margin relief from Section 301 tariffs, with rates expected to drop from 19% to approximately 10%-12.5% based on current communications. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management is starting back-to-school promotions three weeks earlier than last year to capture early demand and has secured better inventory positions for core backpack styles. Strategic expansion includes a new back-to-school capsule collection launching in 89 Nordstrom doors and online to reach new consumer segments. The primary goal for the outlet channel is improving the productivity of existing stores rather than aggressive new store expansion. The Outlet 2.0 pilot has shown improved retail KPIs, and management is using a test-and-learn approach to refine the model before a broader rollout. Inventory is expected to land between $60 million and $75 million as the company works through remaining Project Restoration stock. Management expects less pressure from tariffs on margins going forward, noting an absolute rate drop from 19% to 15% with further potential decreases to 10%-12.5%.

Shoe Carnival (SCVL) came out with quarterly earnings of $0.23 per share, beating the Zacks Consensus Estimate of $0.2 per share. This compares to earnings of $0.34 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +15.00%. A quarter ago, it was expected that this footwear retailer would post earnings of $0.33 per share when it actually produced earnings of $0.33, delivering no surprise. Over the last four quarters, the company has surpassed consensus EPS estimates two times. Shoe Carnival, which belongs to the Zacks Retail - Apparel and Shoes industry, posted revenues of $270.73 million for the quarter ended April 2026, surpassing the Zacks Consensus Estimate by 1.55%. This compares to year-ago revenues of $277.71 million. The company has topped consensus revenue estimates two times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Shoe Carnival shares have lost about 6.6% since the beginning of the year versus the S&P 500's gain of 8.6%. While Shoe Carnival has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Shoe Carnival was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.28 on $303.32 million in revenues for the coming quarter and $1.50 on $1.13 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Retail - Apparel and Shoes is currently in the bottom 35% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, Vera Bradley (VRA), has yet to report results for the quarter ended April 2026. This handbag and accessories company is expected to post quarterly loss of $0.33 per share in its upcoming report, which represents a year-over-year change of +8.3%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Vera Bradley's revenues are expected to be $49.12 million, down 4.9% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Shoe Carnival, Inc. (SCVL) : Free Stock Analysis Report Vera Bradley, Inc. (VRA) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

This article first appeared on GuruFocus. Revenue: $84.9 million for Q4 fiscal 2026, down from $86.4 million in the prior year. Net Income: $2.5 million for Q4 fiscal 2026, compared to a net loss of $5.4 million in the prior year. Earnings Per Share (EPS): $0.09, a positive swing of $0.28 year-over-year. Gross Margin: 47.8% of net revenues, up from 46.8% in the prior year. SG&A Expenses: $37.3 million, a decrease of $10.6 million from the prior year. Operating Income: $3.6 million, compared to an operating loss of $7.3 million in the prior year. Cash Flow: $17 million in operating cash flow for Q4. Inventory: Decreased by nearly 17% to $76 million year-over-year. Direct Channel Revenue: $74.5 million, a 2.6% decrease from the prior year. Indirect Channel Revenue: $10.4 million, a 4.9% increase from the prior year. Comparable Sales: Declined 0.7% for the quarter. Store Changes: Two new store openings and 13 store closures since the prior year. Warning! GuruFocus has detected 7 Warning Signs with VRA. Is VRA fairly valued? Test your thesis with our free DCF calculator. Release Date: March 12, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Vera Bradley Inc (NASDAQ:VRA) achieved its first quarter of profitability in over a year, with net income of $2.5 million and an EPS of $0.09. The company reported a strong sequential improvement in its Direct channel, marking the third consecutive quarter of sequential improvement. Vera Bradley Inc (NASDAQ:VRA) successfully leveraged holiday traffic to clear discontinued products and rebuild its assortment of hero products. The company generated year-over-year gross margin expansion of approximately 100 basis points through disciplined cost management and strategic pricing. Vera Bradley Inc (NASDAQ:VRA) strengthened its balance sheet by paying off its ABL facility, providing additional financial flexibility. Overall sales for the fourth quarter were down 1.7% compared to the prior year. The Direct segment revenues decreased by 2.6% from the prior year fourth quarter. The company is still managing through an overhang of inventory from Project Restoration, which may impact future performance. Comparable sales declined by less than 1%, and the company faced challenges due to winter storm impacts. Vera Bradley Inc (NASDAQ:VRA) continues to face significant work ahead to stabilize the business and achieve long-term sustainable growth. Q: When should we expect the product flows and mix to align with your strategic goals, considering past management's influence? A: Ian Bickley, Executive Chairman of the Board, explained that about 80% of the spring/summer collection has been influenced by the current team. By fall/winter, they expect to have full control over the product offerings. The focus for fiscal '27 is on stabilizing the business and building a strong foundation for growth in FY28 and beyond. Q: How should we view the balance between physical stores and digital channels moving forward? A: Ian Bickley emphasized the importance of the digital business for profitability and reaching new consumers. The company plans to optimize its existing outlet stores through the Outlet 2.0 initiative and selectively open new brand stores where there is no current coverage. The wholesale channel will also be a focus to increase brand visibility in affluent areas. Q: Will there be more Outlet 2.0 stores opening in fiscal 2027? A: Ian Bickley indicated that while it's not definitive, there is an inclination to open a few more Outlet 2.0 stores this fiscal year. The company is looking to refine the concept and identify the best locations for these stores. Q: What are the key strategic pillars under Project Sunshine? A: The five strategic pillars include sharpening brand focus, resetting the go-to-market approach, rewiring the digital ecosystem, implementing Outlet 2.0, and reimagining organizational work processes. These initiatives aim to revitalize the brand, expand market share, and achieve sustainable growth. Q: How did the company perform financially in Q4 2026? A: Martin Layding, CFO, reported consolidated revenues of $84.9 million, a slight decrease from the previous year. However, the company achieved a net income of $2.5 million, marking its first profitable quarter in over a year. The gross margin improved by 100 basis points, and SG&A expenses were reduced by $10.6 million. For the complete transcript of the earnings call, please refer to the full earnings call transcript.