Vera Bradley reported adjusted earnings per share of $0.11 for the second quarter of fiscal 2027, compared with a loss of $0.02 a share in the prior year and a consensus estimate of $0.01. Revenue reached $71.65 million, an increase of 1.1% from $70.9 million a year earlier, surpassing the expected $70.89 million.
Net income from continuing operations was $3.3 million, reversing a $0.5 million loss in the same period last year. Gross profit rose to $42.8 million, representing 59.8% of revenue, up from $35.4 million (49.9% of revenue) a year ago. Operating income was $4.3 million versus an operating loss of $0.6 million in the prior year.
Cash and cash equivalents grew to $34.2 million from $15.2 million, with no debt outstanding. Inventory fell 28.4% to $69.3 million from $96.7 million. Operating cash flow was approximately $23 million, a sharp increase from $3.9 million a year earlier. SG&A expenses totaled $38.7 million, or 54% of revenue, compared with $36.3 million (51.2% of revenue) previously.
Direct channel revenue increased 8% year-over-year, marking the fifth consecutive quarter of sequential improvement and accounting for more than 90% of the business. Comparable sales in the direct channel rose 9.2%. The indirect/wholesale segment saw revenue decline 39% due to intentional timing shifts and reduced liquidation sales, though mid‑single‑digit growth was noted in strategic wholesale accounts.
In premarket trading, Vera Bradley shares climbed 14.76% to $3.49 from a prior close of $3.04. The stock’s 52‑week range stands between $1.39 and $4.39.
For the full fiscal year 2027, the company reiterated its sales outlook of $255 million to $270 million and expects a year‑over‑year improvement of at least 50% in its non‑GAAP operating loss. Executives noted that gross margin expansion benefited from tariff refunds, while underlying margin improved more than 40 basis points year‑over‑year.
