Vera Bradley, Inc.VRA
Vera Bradley, Inc. Segments Disclosure
Segment Reporting
The Company has two operating segments, which are also its reportable segments: VB Direct and VB Indirect. These operating segments are components of the Company for which separate financial information is available and for which operating results are evaluated on a regular basis by the chief operating decision maker ("CODM") in deciding how to allocate resources and in assessing the performance of the segments. The Company's CODM is our Chief Executive Officer.
The VB Direct segment includes Vera Bradley full-line and outlet stores, the Vera Bradley websites (verabradley.com, outlet.verabradley.com, and international.verabradley.com), typically, the Vera Bradley annual outlet sale, and direct to consumer marketplaces. Revenues generated through this segment are driven through the sale of Vera Bradley-branded products from Vera Bradley to end consumers.
The VB Indirect segment represents revenues generated through the distribution of Company-branded products to specialty retailers representing approximately 1,000 locations, substantially all of which are located in the United States, as well as select department stores, national accounts, third-party inventory liquidators, and licensing agreements related to the Vera Bradley brand.
Corporate costs represent the Company’s administrative expenses, which include, but are not limited to: human resources, legal, finance, information technology, design, product development, merchandising, corporate-level marketing and advertising, and various other corporate-level-activity-related expenses not directly attributable to a reportable segment. Income earned under the Transition Services Agreement ("TSA") resulting from the sale of Creative Genius is netted against these unallocated corporate expenses. All intercompany-related activities are eliminated in consolidation and are excluded from the segment reporting.
The CODM’s primary or key performance indicator for evaluating segment operating results is operating income. The CODM uses operating income for each segment predominantly in the annual budget and forecasting process. The CODM considers budget-to-actual variances on a quarterly basis for this key performance operating measure when making decisions about the allocation of operating and capital resources to each segment. The CODM also uses segment operating income to assess the performance of each segment by comparing the results of each segment with one another and in determining the compensation of certain employees. The CODM reviews cost of sales and SG&A expense on a consolidated basis.
The accounting policies of the segments are the same as those described in Note 2. The Company does not report depreciation or amortization expense, total assets, or capital expenditures by segment as such information is neither used by management nor accounted for at the segment level.
Net revenues, cost of sales, other segment expenses, and operating income information for the Company’s reportable segments, as well as a reconciliation to (loss) income from continuing operations before income taxes, consisted of the following (in thousands):
| Fiscal Year Ended | ||||||||||||||||||||
| January 31, 2026 | February 1, 2025 | February 3, 2024 | ||||||||||||||||||
| Segment net revenues: | ||||||||||||||||||||
| VB Direct | $ | 227,791 | $ | 257,609 | $ | 309,910 | ||||||||||||||
| VB Indirect | 41,860 | 61,186 | 73,803 | |||||||||||||||||
| Total | $ | 269,651 | $ | 318,795 | $ | 383,713 | ||||||||||||||
| Segment cost of sales: | ||||||||||||||||||||
| VB Direct | $ | 117,860 | $ | 125,467 | $ | 141,933 | ||||||||||||||
| VB Indirect | 26,754 | 34,490 | 37,815 | |||||||||||||||||
| Total | $ | 144,614 | $ | 159,957 | $ | 179,748 | ||||||||||||||
Other segment expenses, net (1) | ||||||||||||||||||||
| VB Direct | $ | 91,609 | $ | 106,902 | $ | 106,104 | ||||||||||||||
| VB Indirect | 6,524 | 11,282 | 11,709 | |||||||||||||||||
| Total | $ | 98,133 | $ | 118,184 | $ | 117,813 | ||||||||||||||
| Segment operating income: | ||||||||||||||||||||
| VB Direct | $ | 18,322 | $ | 25,240 | $ | 61,873 | ||||||||||||||
| VB Indirect | 8,582 | 15,414 | 24,279 | |||||||||||||||||
| Total | $ | 26,904 | $ | 40,654 | $ | 86,152 | ||||||||||||||
| Reconciliation: | ||||||||||||||||||||
| Segment operating income: | $ | 26,904 | $ | 40,654 | $ | 86,152 | ||||||||||||||
| Unallocated corporate expenses | (58,816) | (69,446) | (74,535) | |||||||||||||||||
| Interest (expense) income | (462) | 752 | 661 | |||||||||||||||||
| (Loss) income from continuing operations before income taxes | $ | (32,374) | $ | (28,040) | $ | 12,278 | ||||||||||||||
| (1) Other segment expenses, net include selling, general and administrative expenses and are net of other income. | ||||||||||||||||||||
Sales outside of the United States were immaterial for all periods presented.
No customer accounted for 8% or more of the Company’s net revenues during fiscal years 2026, 2025, and 2024.
Refer to Note 3 herein for disaggregation of net revenues by reportable segment.
As of January 31, 2026 and February 1, 2025, substantially all of the Company’s long-lived assets were located in the United States.
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 | |
| 2018 | Apr 3, 2018 | |
| 2017 | Mar 28, 2017 | |
| 2016 | Mar 29, 2016 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.