Vera Bradley ( 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 ( VRA ) 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 ( VRA ), said the company saw sequential improvement in second-quarter comparable sales and expects the trend to continue.

He added that Vera Bradley ( VRA ) 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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