Vera Bradley, Inc.VRA
Vera Bradley, Inc. Revenue Disclosure
Revenue from Contracts with Customers
Disaggregation of Revenue
The following presents the Company's net revenues disaggregated by product category for the fifty-two weeks ended January 31, 2026 and February 1, 2025, and fifty-three weeks ended February 3, 2024 (in thousands):
| Fifty-Two Weeks Ended | ||||||||||||||||||||
| January 31, 2026 | ||||||||||||||||||||
| VB Direct Segment | VB Indirect Segment | Total | ||||||||||||||||||
| Product categories | ||||||||||||||||||||
| Bags | $ | 96,749 | $ | 25,206 | $ | 121,955 | ||||||||||||||
| Travel | 63,077 | 9,505 | 72,582 | |||||||||||||||||
| Accessories | 31,817 | 3,045 | 34,862 | |||||||||||||||||
| Home | 20,124 | 1,390 | 21,514 | |||||||||||||||||
| Apparel/Footwear | 8,302 | 324 | 8,626 | |||||||||||||||||
| Other | 7,722 | (1) | 2,390 | (2) | 10,112 | |||||||||||||||
| Total net revenues | $ | 227,791 | (3) | $ | 41,860 | (4) | $ | 269,651 | ||||||||||||
| (1) Primarily includes net revenues from stationery, freight, and gift card breakage. | ||||||||||||||||||||
| (2) Primarily includes net revenues from licensing agreements, freight, and merchandising. | ||||||||||||||||||||
| (3) Net revenues were related to product sales recognized at a point in time. | ||||||||||||||||||||
(4) $39.7 million of net revenues related to product sales recognized at a point in time and $2.2 million of net revenues related to sales-based royalties recognized over time. | ||||||||||||||||||||
| Fifty-Two Weeks Ended | ||||||||||||||||||||
| February 1, 2025 | ||||||||||||||||||||
| VB Direct Segment | VB Indirect Segment | Total | ||||||||||||||||||
| Product categories | ||||||||||||||||||||
| Bags | $ | 105,071 | $ | 35,077 | $ | 140,148 | ||||||||||||||
| Travel | 67,911 | 13,090 | 81,001 | |||||||||||||||||
| Accessories | 40,993 | 6,920 | 47,913 | |||||||||||||||||
| Home | 25,899 | 2,738 | 28,637 | |||||||||||||||||
| Apparel/Footwear | 10,554 | 1,216 | 11,770 | |||||||||||||||||
| Other | 7,181 | (1) | 2,145 | (2) | 9,326 | |||||||||||||||
| Total net revenues | $ | 257,609 | (3) | $ | 61,186 | (4) | $ | 318,795 | ||||||||||||
| (1) Primarily includes net revenues from stationery, freight, and gift card breakage. | ||||||||||||||||||||
| (2) Primarily includes net revenues from licensing agreements, freight, and merchandising. | ||||||||||||||||||||
| (3) Net revenues were related to product sales recognized at a point in time. | ||||||||||||||||||||
(4) $59.4 million of net revenues related to product sales recognized at a point in time and $1.8 million of net revenues related to sales-based royalties recognized over time. | ||||||||||||||||||||
| Fifty-Three Weeks Ended | ||||||||||||||||||||
| February 3, 2024 | ||||||||||||||||||||
| VB Direct Segment | VB Indirect Segment | Total | ||||||||||||||||||
| Product categories | ||||||||||||||||||||
| Bags | $ | 119,705 | $ | 39,609 | $ | 159,314 | ||||||||||||||
| Travel | 75,927 | 14,922 | 90,849 | |||||||||||||||||
| Accessories | 52,930 | 9,547 | 62,477 | |||||||||||||||||
| Home | 37,587 | 4,022 | 41,609 | |||||||||||||||||
| Apparel/Footwear | 16,526 | 2,461 | 18,987 | |||||||||||||||||
| Other | 7,235 | (1) | 3,242 | (2) | 10,477 | |||||||||||||||
| Total net revenues | $ | 309,910 | (3) | $ | 73,803 | (4) | $ | 383,713 | ||||||||||||
| (1) Primarily includes net revenues from stationery, freight, and gift card breakage. | ||||||||||||||||||||
| (2) Primarily includes net revenues from licensing agreements, freight, and merchandising. | ||||||||||||||||||||
| (3) Net revenues were related to product sales recognized at a point in time. | ||||||||||||||||||||
(4) $71.4 million of net revenues related to product sales recognized at a point in time and $2.4 million of net revenues related to sales-based royalties recognized over time. | ||||||||||||||||||||
Contract Balances
Contract liabilities as of January 31, 2026 and February 1, 2025, were $1.6 million and $1.7 million, respectively. The balance consisted of unredeemed gift cards. These contract liabilities are recognized within other accrued liabilities on the Company’s Consolidated Balance Sheets. Substantially all contract liabilities are recognized within one year. The Company did not have contract assets as of January 31, 2026 and February 1, 2025.
The balance for accounts receivable from contracts with customers, net of allowances, as of January 31, 2026 and February 1, 2025 was $16.4 million and $13.3 million, respectively, which is recognized within accounts receivable, net, on the Company’s Consolidated Balance Sheets. The provision for doubtful accounts was $0.5 million and $0.8 million as of January 31, 2026 and February 1, 2025, respectively. The provision for doubtful accounts is based upon the likelihood of default expected during the life of the receivable.
Performance Obligations
The performance obligations for the VB Direct and VB Indirect segments include the promise to transfer distinct goods (or a bundle of distinct goods). The VB Indirect segment also includes the right to access intellectual property (“IP”) related to the Vera Bradley brand.
Remaining Performance Obligations
The Company does not have remaining performance obligations in excess of one year or contracts that it does not have the right to invoice as of January 31, 2026.
Significant Judgments
Product Sales
In the Vera Bradley retail stores (recognized within the VB Direct segment), control is transferred and net revenue is recognized at the point of sale. Product shipments for the Company’s e-commerce channels (recognized within the VB Direct segment) and shipments to its wholesale retailers (recognized within the VB Indirect segment) are generally shipped Free on Board (“FOB”) shipping point typically from its distribution center in Roanoke, Indiana. Net revenue is recognized upon shipment consistent with when control is transferred to the customer. Upon shipment, the customer has the right to direct the use of, and obtain substantially all of the benefits from, the product.
Licensing Royalties
The Company grants rights to access its Vera Bradley IP and accounts for any resulting sales-based royalty revenue over time, as the subsequent sales occur. The Company has contractually guaranteed minimum royalties in certain of its sales-based royalty arrangements which are recognized straight-line over the remaining license period once determined that the minimum sales level will not be achieved. Licensing royalties are recognized within VB Indirect segment net revenues.
Transaction Price and Amounts Allocated to Performance Obligations
The transaction price is the amount of consideration the Company expects to be entitled to in a sales transaction. The transaction price is net of discounts, estimated variable consideration (if any), and any customer allowances offered or estimated, including those offered to certain Indirect retailers based on various contract terms. The transaction price also is net of allowances for product returns, which the Company is able to reasonably estimate based upon historical experience. The transaction price is allocated to each performance obligation in the contract based upon the standalone selling price.
Contract Costs
Sales commissions are paid to certain employees based upon specific sales achieved during a time period. As the Company’s contracts related to these sales commissions do not exceed one year, these incentive payments are expensed as incurred.
Other Practical Expedients
Significant Financing Components
The Company does not adjust for the time value of money as the majority of its contracts have an original expected duration of one year or less; contracts that are greater than one year are related to net revenues that are constrained until the subsequent sales occur. The net revenues associated with these contracts are immaterial, and the Company does not adjust for the time value of money.
Concentration of Credit Risk
Five customers represented approximately 64.0% of the balance of accounts receivable, net as of January 31, 2026.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2026 | Mar 27, 2026 | Showing above |
| 2025 | Mar 28, 2025 | |
| 2024 | Mar 29, 2024 | |
| 2023 | Mar 28, 2023 | |
| 2022 | Mar 29, 2022 | |
| 2021 | Mar 30, 2021 | |
| 2020 | Mar 31, 2020 | |
| 2019 | Apr 2, 2019 | |
About Revenue Disclosures
Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.
Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.