Overview

• U.S. handbag and accessories maker's Q1 revenue rose 7.8%, first growth since fiscal 2022

• Company's non-GAAP net loss narrowed sharply year-over-year

• Gross margin expanded and expenses fell, driven by cost optimization and sales mix

Outlook

• Vera Bradley sees fiscal 2027 net revenues between $255 mln and $270 mln

• Company expects at least 50% improvement in non-GAAP operating loss versus prior year

• Guidance reflects absence of annual outlet sale and rebuilding of wholesale business

Result Drivers

• SALES MIX AND COSTS - Gross margin expansion was driven by a more favorable sales mix and lower freight and duty costs

• COST OPTIMIZATION - SG&A expense fell nearly 15% year-over-year due to cost optimization, including lower personnel costs, optimized marketing spend, and reduced lease costs

• DIRECT AND INDIRECT SEGMENT GROWTH - Direct segment comparable sales rose 13.4% on improved ecommerce conversion, higher average ticket, and increased store traffic; Indirect segment revenue rose 26.6% due to improved specialty and department store performance and growth across key accounts

Company press release: ID:nGNXc0hB49

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q1 Revenue	Beat	$55.70 mln	$49.12 mln (1 Analyst)
Q1 Adjusted EPS	Miss	-$0.36	-$0.33 (1 Analyst)
Q1 EPS		-$0.17
Q1 Net Income		-$4.83 mln

Analyst Coverage

• The one available analyst rating on the shares is "hold"

• The average consensus recommendation for the apparel & accessories peer group is "buy."

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