Vera Bradley Posts 24.6% Sales Drop in Q2, Non-GAAP Net Earnings Per Share Down to Loss of $0.02

Vera Bradley reported a 24.6% year-over-year drop in revenue to $70.9 million for Q2. Non-GAAP net earnings per share fell to a loss of $0.02 from a profit of $0.09 in the prior year. The quarter saw sequential improvement in comparable store sales, but sustained deep declines in both Direct and Indirect segments.

Vera Bradley (VRA) reported a 24.6% year-over-year drop in revenue to $70.9 million for the second quarter of fiscal 2026. The company's non-GAAP net earnings per share fell to a loss of $0.02, compared to a profit of $0.09 in the prior year. Despite these declines, the quarter saw sequential improvement in comparable store sales, indicating some positive trends.

Revenue and earnings weakened sharply year over year, but metrics such as gross margin and store comps showed some signs of stabilization. The company's Direct and Indirect segments both experienced sustained deep declines, highlighting ongoing challenges in both retail and wholesale channels.

Vera Bradley's financial health presents a mixed picture. Revenue growth has been declining, with a 15.3% decrease over the past year and a longer-term trend showing a 6.4% decrease over three years. Profitability remains a concern, with operating and net margins at -11.65% and -25.52%, respectively. The company's current ratio of 2.28 suggests adequate liquidity, but the quick ratio of 0.61 indicates potential short-term liquidity concerns.

The company's valuation metrics highlight its current market positioning. The Price-to-Sales (P/S) Ratio of 0.2 is below the historical median of 0.64, suggesting potential undervaluation, while the Price-to-Book (P/B) Ratio of 0.44 is also below the historical median of 1.02. Analyst sentiment is cautious, with a recommendation score of 3 indicating a hold position.

Vera Bradley's strategic focus on brand channels and direct-to-consumer sales may provide opportunities for recovery. Investors should consider the company's financial metrics and market positioning when evaluating its potential as an investment. The company's earnings surprise of +86.67% for the quarter, compared to the Zacks Consensus Estimate of a loss of $0.15, suggests that the stock's immediate price movement will depend on management's commentary on the earnings call.

Vera Bradley (VRA) Reports Q2 Loss, Lags Revenue Estimates^[1]