Vera Bradley (NASDAQ:VRA) stock fell on Thursday after the handbag and accessories company reported a significant drop in fiscal second-quarter 2026 revenue, missing analyst estimates.
The company’s consolidated net revenues from continuing operations fell 24.6% to $70.9 million, well below Wall Street’s forecast of $78.5 million.
While the retailer managed to narrow its adjusted net loss to 2 cents per share, beating the expected 15 cents loss, the revenue miss and a 17.3% decline in comparable sales spooked investors.
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The retailer’s direct segment revenue fell 16.2% to $60.5 million in the second quarter from $72.2 million a year earlier. Comparable sales dropped 17.3%, reflecting lower conversion rates across full-line, outlet, and e-commerce channels.
The company closed seven underperforming full-line stores and one outlet during the quarter as part of its ongoing footprint rationalization.
Vera Bradley reported indirect segment revenue of $10.3 million, down 52.5% from $21.8 million a year earlier. The decline was driven by lower orders from key accounts and reduced liquidation activity.
Ian Bickley, Executive Chairman of Vera Bradley, said the company saw sequential improvement in second-quarter comparable sales and expects the trend to continue.
He added that Vera Bradley is revamping product design and assortments, reintroducing iconic styles like the Vera Tote and the 100 Bag, while balancing fabrics, silhouettes, and prints.
Through a comprehensive strategy involving merchandising, innovation, marketing, and multi-channel engagement, Bickley said the company aims to reconnect with loyal customers, reach new audiences, and restore long-term growth and competitiveness.
Price Action: VRA stock is trading lower by 10.53% to $2.040 at last check Thursday.
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