Wed, Sep 11, 6:06 PM (100 days ago)
Vera Bradley, Inc. reported a challenging second quarter for fiscal 2025, with net revenues of $110.8 million, down 13.5% from $128.2 million in Q2 FY2024. The decline was driven primarily by a significant drop in the VB Direct segment, which saw revenues decrease by 15.7% to $72.2 million, reflecting reduced store traffic and a timing shift of the annual outlet sale. The VB Indirect segment, however, reported a 25.3% increase in revenues due to liquidation orders. Gross profit fell 21.7% to $56.4 million, leading to a gross margin contraction from 56.2% to 50.9%. Selling, general, and administrative (SG&A) expenses decreased by 9.7% but remained high as a percentage of revenues at 48.4%. The company recorded an operating income of $2.9 million, down 77.7% year-over-year. For the twenty-six weeks ended August 3, 2024, Vera Bradley incurred a net loss of $2.4 million, a stark contrast to the $4.6 million profit from the prior year. The effective tax rate was notably high at 68.3%, influenced by changes in income projections. The company continues to face macroeconomic pressures, including inflation and tariff increases, impacting consumer spending and overall financial performance.