EarningsQ2 2027 Earnings Report
DE:ELI Q2 2027 EPS Results
Actual EPS€0.10
Consensus EPS-€0.07
Beat/MissBeat by +€0.16
One Year Ago EPS-€0.02
DE:ELI Q2 2027 Revenue Results
Actual Revenue€62.13M
Expected Revenue€57.19M
Beat/MissBeat by +€4.94M
YoY Revenue Growth+1.12%
Earnings Announcement Details
QuarterQ2 2027
Date09/15/2026
TimeBefore Open
Conference CallTuesday, September 15, 2026
DE:ELI Upcoming Earnings
Vera Bradley's next earnings date is estimated for December 9, 2026, based on past reporting schedules.
Q2 2027 Earnings Call Audio
DE:ELI Q2 2027 Earnings Call
0:00 / 0:00
Q2 2027 Earnings Slide Deck
No slide deck is available for this earnings event.
Q2 2027 Earnings Call Summary
Earnings Call Sentiment|Positive
The call was predominantly positive. Management highlighted a second consecutive quarter of overall growth, accelerating Direct performance, positive comparable sales, improved profitability, underlying gross margin expansion, sharply lower inventory, stronger cash generation, no debt and reiterated guidance. The main challenges were the 39% decline in Indirect revenue, fewer stores, higher SG&A, the contribution of tariff refunds to reported gross margin improvement and remaining work to rebuild the Indirect channel.Company Guidance
Second Consecutive Quarter of Overall Growth
Second-quarter total revenue increased 1.1% year-over-year to $71.6 million from $70.9 million, marking the company's second consecutive quarter of overall growth.
Direct Segment and Comparable Sales Momentum
Direct segment revenue increased 8% year-over-year to $65.4 million from $60.5 million, with comparable sales up 9.2% across stores and digital. This was the fifth consecutive quarter of sequential improvement, and growth occurred in both full-price and outlet businesses.
Improved Profitability
Non-GAAP net income from continuing operations increased $3.8 million to $3.3 million, or $0.11 per diluted share, compared with a $0.5 million loss, or negative $0.02 per diluted share, in the prior-year quarter. Operating income was $4.3 million, or 5.9% of revenue, versus an operating loss of $0.6 million, or negative 0.8%, last year.
Gross Margin Expansion
Second-quarter gross margin was 59.8%, compared with 49.9% last year. The company received $8 million in tariff refunds net of interest, favorably affecting gross profit by $7.7 million and contributing approximately 980 basis points of year-over-year gross profit rate improvement. Excluding tariff refunds, underlying gross margin still improved more than 40 basis points, driven by product margin improvement and freight efficiencies, partially offset by strategic clearance of non-go-forward Project Restoration product.
Inventory Reduction and Cash Generation
Inventory decreased 28.4% year-over-year to $69.3 million from $96.7 million, driven by improved assortment planning, buy management, sales performance and the $5.3 million Project Restoration inventory reserve. The company generated $23 million of operating cash flow in the quarter and ended with $34.2 million of cash, compared with $15.2 million last year, with no borrowings on its ABL facility.
Operating Loss Improvement Guidance Reiterated
Based on year-to-date performance, management reiterated its expectation for year-over-year non-GAAP operating loss improvement of at least 50%. Fiscal 2027 sales guidance was also reiterated at $255 million to $270 million, along with full-year gross margin improvement.
Back to School Performance and Momentum
Back to School business was up versus last year as the company entered the third quarter with good momentum in both full-price and outlet channels. Management said preparation, planning and execution paid off and identified Back to School as an occasion Vera Bradley can continue to own and use to grow market share.
Progress on Product and Brand Strategy
Back to School and holiday collections were the first quarter with 100% of the assortment reflecting the company's current product strategy. Cotton returned toward historic levels of importance, Vera Originals continued to reengage long-time fans, and reimagined iconic styles and heritage prints continued to validate the brand direction.
Successful Collaborations
Hello Kitty performed well around Back to School, Winnie the Pooh continued to perform well in the brand, Star Wars Droid performed well in outlet through June and early July, and earlier success was reported with Disney Princesses, Stitch and Honeydukes products.
Wholesale Product and Brand Validation
Strategic wholesale accounts, including specialty and department stores, delivered mid-single-digit overall selling growth. Management cited improved assortment productivity and full-price sell-through and said leading retail partners were increasingly recognizing the company's brand momentum.
Rebuilding the In-House Wholesale Sales Team
The company decided to reestablish its in-house sales team under new wholesale leadership while discontinuing its previous third-party sales representative arrangement, with the initial focus on rebuilding strategic specialty and department-store accounts.
Marketing Reach and Brand Awareness Gains
Back to School marketing shifted toward lifestyle-oriented storytelling, and collaborations with Anthropologie, Target and Little Words Project drove outsized reach and new audiences to the company's social platforms. Google search activity for the term Vera Bradley returned to positive growth this year for the first time in more than a decade.
Digital Ecosystem Investment
The company is continuing to invest in connectivity across owned digital platforms, marketplace partnerships and social commerce, including additional talent and expertise, incremental media investment, customer data platform migration, personalization, card enhancements and additional testing platforms.
Outlet 2.0 Test Results
Outlet 2.0 test stores recorded improved sales, conversion and gross margin metrics versus the control group. Management plans to evolve the approach into the One Vera strategy, intended to create a seamless and elevated brand experience across channels.
Organizational Transformation Progress
The company said the fifth Project Sunshine pillar, reimagining how it works, has been largely achieved. It has fundamentally redesigned the organization, put in place a best-in-class team and is now focused on performance, agility, accountability, cross-functional collaboration and data-driven decision-making.
Legacy Inventory Cleanup Progress
The company continued working down non-go-forward Project Restoration inventory while expanding gross margin and is now past the halfway point in working through its legacy inventory.
DE:ELI Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed