Vera Bradley Posts 25% Sales Drop in Q2

Vera Bradley (NASDAQ:VRA), the handbag and accessories company known for its signature quilted bags, reported its second quarter fiscal 2026 results on September 11, 2025. The most important takeaway from the release was a continued and substantial decline in both sales and profitability, though management pointed to sequential improvement in certain sales metrics and progress on cost controls. Revenue and earnings weakened sharply year over year, but metrics such as gross margin and store comps showed some signs of stabilization.

Vera Bradley designs, makes, and sells a variety of quilted bags, luggage, travel accessories, and related products. Its colorful patterns and practical designs have helped it build a dedicated following, especially among women shopping for handbags, backpacks, and travel goods. Until earlier this year, it also owned Pura Vida, a brand focused on bracelets and lifestyle jewelry aimed at Gen Z consumers.

The company relies on two main business segments: Direct, which includes its own stores and website, and Indirect, which covers sales through wholesale partners like department stores and specialty retailers. Recent priorities have included reviving the core brand through "heritage" products, optimizing its retail footprint, and expanding digital offerings. Key success factors are brand resonance, conversion of store and e-commerce traffic, and operating cost discipline.

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Source Fool.com