Sep 15, 2026 earnings call — Project Sunshine transformation progress
Total revenue was up 1.1% year-over-year, with consolidated revenues totaling $71.6 million this quarter.
Revenue $0.1B (est $0.1B) · EPS $0.11 (est $-0.08) · Next-quarter revenue outlook $0.3B–$0.3B
Key quotes
"This marked our second consecutive quarter of overall growth with total revenue up 1.1% versus the prior year, an important continuation of the trajectory we discussed last quarter."
"Comparable sales across our Direct channel, combining stores and digital were up 9.2% for the quarter, our second consecutive quarter of positive comparable sales with growth in both our full price and outlet businesses."
"During the quarter, we received $8 million in tariff refunds net of interest, which favorably impacted gross profit by $7.7 million and inventory by $0.3 million."
Analyst Q&A 1
Inventory, sales channels, Back-to-School, holiday
Q (Eric Beder · SCC): The analyst asked how inventories should be thought of at year-end and into next year. He also asked about the indirect (third-party) business recovery and shift to Direct, Back-to-School learnings, and holiday product and flow plans.
A: Inventory will continue to decline through the end of the year, with some small increase expected as they get into next year, and the team is focused on improving turns into the 2 to 3 range and on cash conversion. They said they are confident in product marketing and distribution choices, are seeing mid-single-digit sell-in growth in strategic wholesale accounts, and have had 5 consecutive quarters of sequential improvement in their Direct business, which is 90% of sales; they are rebuilding their in-house wholesale sales team, reducing liquidation, and optimizing marketplace management. For Back to School, they said it is a moment Vera can own and execution was strong though they missed some matching lunch bags for backpacks; for holiday they are now 100% in control of assortment and buys and feel confident about prints, accessories, and small bags.
"I think that inventory will continue to decline through the end of the year." — Martin Layding