Vera Bradley, Inc. continues to struggle, with Q2 '26 sales down 25% and no clear signs of recovery after a failed rebranding. VRA's direct channels showed less severe declines, but wholesale sales collapsed 55%, reflecting deep brand and supply chain issues. Gross margins stabilized, but severe sales declines and high SG&A mean breakeven is only possible if sales stop falling, which is unlikely.
Vera Bradley, Inc. (NASDAQ:VRA ) Q2 2026 Earnings Call September 11, 2025 8:30 AM EDT Company Participants Mark Dely - Chief Administrative & Legal Officer and Corporate Secretary Ian Bickley - Interim CEO & Executive Chairman of the Board Martin Layding - Chief Financial Officer Presentation Operator Greetings, and welcome to the Vera Bradley Second Quarter Fiscal 2026 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded.
Vera Bradley's rebranding failed, alienating loyal customers and causing a 25% YoY sales collapse, with margins deep in negative territory. The CEO responsible for the failed rebranding has been replaced, and a strategic committee has been established. Financial distress is acute: cash reserves are low, losses are mounting, and the company faces higher financial risks despite no funded debt.
| Textiles, Apparel & Luxury Goods Industry | Consumer Discretionary Sector | Ian Martin Bickley CEO | XDUS Exchange | US92335C1062 ISIN |
| US Country | 1,725 Employees | - Last Dividend | - Last Split | 21 Oct 2010 IPO Date |
Vera Bradley, Inc., established in 1982 and headquartered in Roanoke, Indiana, is a distinguished company in the fashion industry, focusing on the design, manufacture, and sale of women’s handbags, luggage, accessories, and gifts. With a diverse product line that caters to various aspects of a woman's life, the company has carved a niche for itself in the market. Vera Bradley operates through three significant segments: Vera Bradley Direct, Vera Bradley Indirect, and Pura Vida, each catering to different customer needs and sales channels. The company’s products are distributed across full-line and factory outlet stores in the United States, its official website, special annual sales, and a wide network of specialty retail locations, department stores, and third-party e-commerce sites. Additionally, Vera Bradley extends its market reach through licensing agreements and the sale of products under the Pura Vida brand name.
Offers a range of bags including totes, crossbodies, satchels, clutches, backpacks, baby bags, and lunch bags, designed to cater to the various needs of women for different occasions and purposes.
Includes wallets, wristlets, eyeglass cases, scarves, and tech accessories, providing stylish and functional options for women to complement their Vera Bradley bags or outfits.
Under the Pura Vida brand, Vera Bradley offers bracelets, rings, and necklaces, focusing on the bohemian and casual style that appeals to both younger audiences and those seeking handcrafted and meaningful jewelry pieces.
Features rolling luggage, cosmetics bags, travel and packing accessories, and duffel and weekend bags, aimed at making travel stylish and organized for women on the go.
Home offerings include throw blankets, beach towels, and comforters, as well as mugs and tumblers, bringing Vera Bradley’s distinctive patterns and colors into the living space.
This category comprises sleepwear, footwear, cotton face masks, outerwear, socks, and scarves, allowing consumers to enjoy Vera Bradley’s signature styles in their clothing and footwear choices.
Provides stationery items and other merchandising products branded with Vera Bradley’s unique designs, catering to fans of the brand who wish to incorporate these patterns into their school or office supplies.
In addition to tangible products, Vera Bradley offers services such as freight, licensing for third-party manufacturing of branded products, and management of unclaimed gift card balances, contributing to its comprehensive business model.