Vera Bradley (VRA) 10-Q 8 Jun 16 2017 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Apr. 30, 2016	Jun. 03, 2016
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Apr. 30, 2016
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q1
Trading Symbol	VRA
Entity Registrant Name	Vera Bradley, Inc.
Entity Central Index Key	1,495,320
Current Fiscal Year End Date	--01-28
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		37,004,561

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Apr. 30, 2016	Jan. 30, 2016
Assets
Cash and cash equivalents	$ 51,813	$ 97,681
Short-term investments	30,013	0
Accounts receivable, net	27,691	31,294
Inventories	113,412	113,590
Income taxes receivable	2,766	785
Prepaid expenses and other current assets	11,947	10,292
Total current assets	237,642	253,642
Property, plant, and equipment, net	114,904	113,711
Deferred income taxes	11,142	11,363
Other assets	2,057	1,963
Total assets	365,745	380,679
Liabilities and Shareholders’ Equity
Accounts payable	26,378	24,606
Accrued employment costs	10,503	14,937
Other accrued liabilities	17,155	16,924
Income taxes payable	0	10,085
Total current liabilities	54,036	66,552
Long-term liabilities	29,445	28,872
Total liabilities	$ 83,481	$ 95,424
Commitments and contingencies
Shareholders’ equity:
Preferred stock; 5,000 shares authorized, no shares issued or outstanding	$ 0	$ 0
Common stock, without par value; 200,000 shares authorized, 40,905 and 40,804 shares issued and 37,449 and 37,701 shares outstanding, respectively	0	0
Additional paid-in-capital	85,706	85,436
Retained earnings	246,427	244,009
Accumulated other comprehensive loss	(38)	(43)
Treasury stock	(49,831)	(44,147)
Total shareholders’ equity	282,264	285,255
Total liabilities and shareholders’ equity	$ 365,745	$ 380,679

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Apr. 30, 2016	Jan. 30, 2016
Statement of Financial Position [Abstract]
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, without par value (in dollars per share)
Common stock, shares authorized	200,000,000	200,000,000
Common stock, shares issued	40,905,000	40,804,000
Common stock, shares outstanding	37,449,000	37,701,000

Consolidated Statements of Inco

Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Apr. 30, 2016	May. 02, 2015
Income Statement [Abstract]
Net revenues	$ 105,181	$ 101,104
Cost of sales	45,525	49,410
Gross profit	59,656	51,694
Selling, general, and administrative expenses	56,376	57,612
Other income	577	947
Operating income (loss)	3,857	(4,971)
Interest expense, net	48	77
Income (loss) before income taxes	3,809	(5,048)
Income tax expense (benefit)	1,391	(912)
Net income (loss)	$ 2,418	$ (4,136)
Basic weighted-average shares outstanding	37,547	39,884
Diluted weighted-average shares outstanding	37,724	39,884
Basic net income (loss) per share (in dollars per share)	$ 0.06	$ (0.10)
Diluted net income (loss) per share (in dollars per share)	$ 0.06	$ (0.10)

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended
	Apr. 30, 2016	May. 02, 2015
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ 2,418	$ (4,136)
Cumulative translation adjustment	5	10
Comprehensive income (loss)	$ 2,423	$ (4,126)

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Apr. 30, 2016	May. 02, 2015
Cash flows from operating activities
Net income (loss)	$ 2,418	$ (4,136)
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Depreciation of property, plant, and equipment	4,702	5,174
Provision for doubtful accounts	23	(381)
Loss on disposal of property, plant, and equipment	0	52
Stock-based compensation	842	1,404
Deferred income taxes	221	348
Gain on short-term investment	(13)	0
Changes in assets and liabilities:
Accounts receivable	3,580	5,514
Inventories	178	(3,391)
Prepaid expenses and other assets	(1,749)	(320)
Accounts payable	1,262	(2,905)
Income taxes	(12,066)	(2,523)
Accrued and other liabilities	(3,395)	394
Net cash used in operating activities	(3,997)	(770)
Cash flows from investing activities
Purchases of property, plant, and equipment	(5,594)	(7,530)
Purchase of short-term investments	(30,000)	0
Net cash used in investing activities	(35,594)	(7,530)
Cash flows from financing activities
Tax withholdings for equity compensation	(572)	(478)
Repurchase of common stock	(5,694)	(6,921)
Other financing activities, net	(16)	(24)
Net cash used in financing activities	(6,282)	(7,423)
Effect of exchange rate changes on cash and cash equivalents	5	10
Net decrease in cash and cash equivalents	(45,868)	(15,713)
Cash and cash equivalents, beginning of period	97,681	112,292
Cash and cash equivalents, end of period	$ 51,813	$ 96,579

Description of the Company and

Description of the Company and Basis of Presentation	3 Months Ended
	Apr. 30, 2016
Accounting Policies [Abstract]
Description of the Company and Basis of Presentation	Description of the Company and Basis of Presentation The terms “Company” and “Vera Bradley” refer to Vera Bradley, Inc. and its subsidiaries, except where the context requires otherwise or where otherwise indicated. Vera Bradley is a leading designer of women’s handbags, luggage and travel items, fashion and home accessories, and unique gifts. Founded in 1982 by friends Barbara Bradley Baekgaard and Patricia R. Miller, the brand’s innovative designs, iconic patterns, and brilliant colors continue to inspire and connect women. Vera Bradley offers a unique, multi-channel sales model, as well as a focus on service and a high level of customer engagement. The Company sells its products through two reportable segments: Direct and Indirect. The Direct business consists of sales of Vera Bradley products through the Company’s full-line and factory outlet stores in the United States, verabradley.com, direct-to-consumer eBay sales, and the Company's annual outlet sale in Fort Wayne, Indiana. As of April 30, 2016 , the Company operated 111 full-line stores and 41 factory outlet stores. The Indirect business consists of sales of Vera Bradley products to approximately 2,600 specialty retail locations, substantially all of which are located in the United States, as well as department stores, national accounts, third-party e-commerce sites, the Company's wholesale customer in Japan, and third-party inventory liquidators. The accompanying unaudited consolidated financial statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”). Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) have been omitted. These interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes included in the Company’s Annual Report on Form 10-K for the fiscal year ended January 30, 2016 , filed with the SEC. The interim financial statements reflect all adjustments that are, in the opinion of management, necessary to present fairly the results for the interim periods presented. All such adjustments are of a normal, recurring nature. The results of operations for the thirteen weeks ended April 30, 2016 , are not necessarily indicative of the results to be expected for the full fiscal year. Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. The Company has eliminated intercompany balances and transactions in consolidation. Fiscal Periods The Company’s fiscal year ends on the Saturday closest to January 31. References to the fiscal quarters ended April 30, 2016 , and May 2, 2015 , refer to the thirteen-week periods ended on those dates. Operating Leases and Tenant-Improvement Allowances The Company has leases that contain rent holidays and predetermined, fixed escalations of minimum rentals. For each of these leases, the Company recognizes the related rent expense on a straight-line basis commencing on the date of initial possession of the leased property. The Company records the difference between the recognized rent expense and the amount payable under the lease as a deferred rent liability. As of April 30, 2016 and January 30, 2016 , deferred rent liability was $11.8 million and $11.5 million , respectively, and is included within long-term liabilities on the Consolidated Balance Sheets. The Company receives tenant-improvement allowances from some of the landlords of its leased properties. These allowances generally are in the form of cash received by the Company from its landlords as part of the negotiated lease terms. The Company records each tenant-improvement allowance as a deferred credit and amortizes the allowance on a straight-line basis as a reduction to rent expense over the term of the lease, commencing on the possession date. As of April 30, 2016 and January 30, 2016 , the deferred lease credit liability was $16.5 million and $16.2 million , respectively. Of these amounts, $2.3 million is included within other accrued liabilities as of April 30, 2016 and January 30, 2016 ; and $14.2 million and $13.9 million is included within long-term liabilities as of April 30, 2016 and January 30, 2016 , respectively. Recently Issued Accounting Pronouncements Recently Adopted Accounting Pronouncements In March 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting . The updated guidance changes how companies account for certain aspects of share-based payment awards to employees, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as the classification of related matters in the statement of cash flows. The standard is effective for public entities for annual periods beginning after December 15, 2016, and interim periods within those annual periods. Early adoption is permitted. The Company early adopted this standard for the quarter ended April 30, 2016. The impact of the adoption of this standard was as follows: • approximately $55,000 of excess tax benefits was recorded through income tax expense as a discrete item, adopted on a prospective basis; • excess tax benefits were combined with other income tax cash flows within operating cash flows adopted on a prospective basis; and • cash paid by the Company when directly withholding shares to satisfy an employee's statutory tax obligations continued to be classified as a financing activity. • The Company has elected to continue its current policy of estimating forfeitures rather than recognizing forfeitures when they occur. Recently Issued Accounting Pronouncements Not Yet Adopted In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers . This guidance requires companies to recognize revenue in a manner that depicts the transfer of promised goods or services to customers in amounts that reflect the consideration to which a company expects to be entitled in exchange for those goods or services. The new standard also will result in enhanced disclosures about the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. The standard allows for either a full retrospective or a modified retrospective transition method. In August 2015, the FASB issued ASU 2015-14 to defer the effective date of ASU 2014-09 for all entities by one year to annual periods beginning after December 15, 2017, including interim periods within that reporting period, which for the Company is fiscal 2019. Earlier application is permitted as of the original effective date, annual reporting periods beginning after December 2016, including interim periods within that reporting period. The Company is currently evaluating the impact of this standard, including the transition method, on its consolidated results of operations, financial position and cash flows. In July 2015, the FASB issued ASU 2015-11, Inventory , which requires entities to measure inventory at the lower of cost and net realizable value. This guidance is effective for interim and annual periods beginning on or after December 15, 2016. The Company is currently evaluating this guidance and does not expect the application of this standard to have a material impact on the Company’s Consolidated Financial Statements upon adoption. In February 2016, the FASB issued ASU 2016-02, Leases , which increases transparency and comparability among organizations by requiring lessees to recognize assets and liabilities on the balance sheet for the rights and obligations created by leases and disclosing key information about leasing arrangements. This guidance is effective for interim and annual periods beginning on or after December 15, 2018. The Company is currently evaluating the impact of the standard on its Consolidated Financial Statements.

Earnings Per Share

Earnings Per Share	3 Months Ended
	Apr. 30, 2016
Earnings Per Share [Abstract]
Earnings Per Share	Earnings Per Share Basic earnings per share is computed based on the weighted-average number of common shares outstanding during the period. Diluted earnings per share is computed based on the weighted-average number of common shares outstanding, plus the effect of dilutive potential common shares outstanding during the period using the treasury stock method. Dilutive potential common shares represent outstanding restricted stock units. The components of basic and diluted earnings per share were as follows (in thousands, except per share data): Thirteen Weeks Ended April 30, May 2, Numerator: Net income (loss) $ 2,418 $ (4,136 ) Denominator: Weighted-average number of common shares (basic) 37,547 39,884 Dilutive effect of stock-based awards 177 — Weighted-average number of common shares (diluted) 37,724 39,884 Earnings (loss) per share: Basic $ 0.06 $ (0.10 ) Diluted $ 0.06 $ (0.10 ) As of April 30, 2016 and May 2, 2015 , there were an immaterial number of additional shares issuable upon the vesting of restricted stock units that were excluded from the diluted share calculations because they were anti-dilutive.

Fair Value of Financial Instrum

Fair Value of Financial Instruments	3 Months Ended
	Apr. 30, 2016
Fair Value Disclosures [Abstract]
Fair Value of Financial Instruments	Fair Value of Financial Instruments Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Assets and liabilities measured at fair value are classified using the following hierarchy, which is based upon the transparency of inputs to the valuation as of the measurement date: • Level 1 – Quoted prices in active markets for identical assets or liabilities; • Level 2 – Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; • Level 3 – Unobservable inputs based on the Company’s own assumptions. The classification of fair value measurements within the hierarchy is based upon the lowest level of input that is significant to the measurement. The carrying amounts reflected on the Consolidated Balance Sheets for cash and cash equivalents, receivables, other current assets, and payables as of April 30, 2016 , and January 30, 2016 , approximated their fair values. Short-term investments consist of a certificate of deposit with an original maturity of one year and a one-time option to accelerate maturity to 31 days without penalty. The initial investment was $30.0 million and the Company has the positive intent and ability to hold the certificate of deposit to maturity. The accrued interest on the certificate of deposit is recognized in interest expense, net, in the Company's Consolidated Financial Statements. Due to the observable inputs, the certificate of deposit approximated its fair value as of April 30, 2016 , and is classified within Level 2 of the fair value hierarchy.

Inventories

Inventories	3 Months Ended
	Apr. 30, 2016
Inventory Disclosure [Abstract]
Inventories	Inventories The components of inventories were as follows (in thousands): April 30, January 30, Raw materials $ — $ 151 Finished goods 113,412 113,439 Total inventories $ 113,412 $ 113,590

Debt

Debt	3 Months Ended
	Apr. 30, 2016
Debt Disclosure [Abstract]
Debt	Debt On July 15, 2015, Vera Bradley Designs, Inc. (“VBD”), a wholly-owned subsidiary of the Company, entered into a Second Amended and Restated Credit Agreement among VBD, the lenders from time to time party thereto, JPMorgan Chase Bank, National Association, as administrative agent, Wells Fargo Bank, National Association, as syndication agent, and KeyBank National Association, as documentation agent (the “Credit Agreement”), which amended and restated the Company's prior credit agreement. The Credit Agreement provides for certain credit facilities to VBD in an aggregate principal amount not to initially exceed $125.0 million, the proceeds of which may be used for general corporate purposes of VBD and its subsidiaries, including but not limited to Vera Bradley International, LLC and Vera Bradley Sales, LLC (collectively, the “Named Subsidiaries”). Amounts outstanding under the Credit Agreement bear interest, at VBD's option, at a per annum rate equal to either (A) the Alternate Base Rate (“ABR”) plus the Applicable Margin, where the ABR is the highest of (i) the prime rate, (ii) the federal funds rate plus 0.5%, and (iii) Adjusted LIBOR for a one-month interest period plus 1%, and the Applicable Margin is a percentage ranging from 0.00% to 0.70% depending upon the Company's leverage ratio or (B) Adjusted LIBOR plus the Applicable Margin, where Adjusted LIBOR means LIBOR, as adjusted for statutory reserve requirements for eurocurrency liabilities, and Applicable Margin is a percentage ranging from 1.00% to 1.70% depending upon the Company's leverage ratio. Any loans made, or letters of credit issued, pursuant to the Credit Agreement mature on July 15, 2020. VBD's obligations under the Credit Agreement are guaranteed by the Company and the Named Subsidiaries. The obligations of VBD under the Credit Agreement are secured by first priority security interests in all of the respective assets of VBD, the Company, and the Named Subsidiaries and a pledge of the equity interests of VBD and the Named Subsidiaries. The Credit Agreement contains various restrictive covenants, including restrictions on the Company's ability to dispose of assets, make acquisitions or investments, incur debt or liens, make distributions to stockholders or repurchase outstanding stock, enter into related party transactions and make capital expenditures, other than upon satisfaction of the conditions set forth in the Credit Agreement. The Company is also required to comply with certain financial and non-financial covenants, including maintaining a maximum leverage ratio, a minimum ratio of EBITDAR to the sum of interest expense plus rentals (as defined in the Credit Agreement), and a limit on capital expenditures. Upon an event of default, which includes certain customary events such as, among other things, a failure to make required payments when due, a failure to comply with covenants, certain bankruptcy and insolvency events, a material adverse change (as defined in the Credit Agreement), defaults under other material indebtedness, and a change in control, the lenders may accelerate amounts outstanding, terminate the agreement and foreclose on all collateral. As of April 30, 2016 and January 30, 2016 , the Company had borrowing availability of $125.0 million under its second amended and restated credit agreement.

Income Taxes

Income Taxes	3 Months Ended
	Apr. 30, 2016
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The provision for income taxes for interim periods is based on an estimate of the annual effective tax rate adjusted to reflect the impact of discrete items. Management judgment is required in projecting ordinary income to estimate the Company’s annual effective tax rate. The effective tax rate for the thirteen weeks ended April 30, 2016 , was 36.5% , compared to 18.1% for the thirteen weeks ended May 2, 2015 . The year-over year increase is primarily due to an increase in income before income taxes in the current year, partially offset by the relative impact of permanent items, as well as an income tax reserve for uncertain tax positions in the prior year and a discrete item related to an excess tax benefit from share-based payments as a result of the early adoption of ASU 2016-09, as further described in Note 1 herein.

Stock-Based Compensation

Stock-Based Compensation	3 Months Ended
	Apr. 30, 2016
Compensation and Retirement Disclosure [Abstract]
Stock-Based Compensation	Stock-Based Compensation The Company recognizes stock-based compensation expense, for its awards of restricted stock units, in an amount equal to the fair market value of the underlying stock on the grant date of the respective award. The Company reserved 6,076,001 shares of common stock for issuance or transfer under the 2010 Equity and Incentive Plan, which allows for grants of restricted stock units, as well as other equity awards. Awards of Restricted Stock Units During the thirteen weeks ended April 30, 2016 , the Company granted 295,148 time-based and performance-based restricted stock units with an aggregate fair value of $5.8 million to certain employees and non-employee directors under the 2010 Equity and Incentive Plan compared to a total of 562,630 time-based and performance-based restricted stock units with an aggregate fair value of $9.1 million granted in the same period of the prior year. The Company determined the fair value of the awards based on the closing price of the Company’s common stock on the grant date. The majority of the time-based restricted stock units vest and settle in shares of the Company’s common stock, on a one -for-one basis, in equal installments on each of the first three anniversaries of the grant date. Restricted stock units issued to non-employee directors vest after a one -year period from the grant date. The Company recognizes the expense relating to these units, net of estimated forfeitures, on a straight-line basis over the vesting period. Performance-based restricted stock units vest upon the completion of a three -year period of time (cliff vesting), subject to the employee’s continuing employment throughout the three -year performance period and the Company’s achievement of annual earnings per share targets during the three-year performance period. The Company recognizes the expense relating to these units, net of estimated forfeitures, based on the probable outcome of achievement of the financial targets, on a straight-line basis over three years . The following table sets forth a summary of restricted stock unit activity for the thirteen weeks ended April 30, 2016 (units in thousands): Time-based Restricted Stock Units Performance-based Restricted Stock Units Number of Units Weighted- Average Grant Date Fair Value (per unit) Number of Units Weighted- Average Grant Date Fair Value (per unit) Nonvested units outstanding at January 30, 2016 463 $ 18.05 303 $ 20.95 Granted 169 19.73 126 19.76 Vested (131 ) 18.58 — — Forfeited — — (46 ) 23.63 Nonvested units outstanding at April 30, 2016 501 $ 18.48 383 $ 20.24 As of April 30, 2016 , there was $9.5 million of total unrecognized compensation cost, net of estimated forfeitures, related to nonvested restricted stock units. That cost is expected to be recognized over a weighted-average period of 2.0 years.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Apr. 30, 2016
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies The Company is subject to various claims and contingencies arising in the normal course of business, including those relating to product liability, legal, employee benefit, environmental, and other matters. Management believes that it is not reasonably possible that any of these claims will have a material adverse effect on the Company’s financial condition, results of operations, or cash flows.

Common Stock

Common Stock	3 Months Ended
	Apr. 30, 2016
Equity [Abstract]
Common Stock	Common Stock On December 8, 2015, the Company's board of directors approved a share repurchase program (the “2015 Share Repurchase Program”) authorizing up to $50.0 million of repurchases of shares of the Company's common stock. The 2015 Share Repurchase Program expires in December 2017. The prior share repurchase program (the “2014 Share Repurchase Program”) was approved by the board of directors on September 9, 2014, and authorized share repurchases up to $40.0 million . The 2014 Share Repurchase Program was completed in fiscal 2016. The Company purchased 354,052 shares at an average price of $16.05 per share, excluding commissions, for an aggregate amount of $5.7 million during the thirteen weeks ended April 30, 2016 , under the 2015 Share Repurchase Program. As of April 30, 2016 , there was $40.2 million remaining available to repurchase shares of the Company's common stock under the 2015 Share Repurchase Program. As of April 30, 2016 , the Company held as treasury shares 3,456,404 shares of its common stock at an average price of $14.42 per share, excluding commissions, for an aggregate carrying amount of $49.8 million . The Company’s treasury shares may be issued under the 2010 Equity and Incentive Plan or for other corporate purposes.

Restructuring and Other Charges

Restructuring and Other Charges	3 Months Ended
	Apr. 30, 2016
Restructuring and Related Activities [Abstract]
Restructuring and Other Charges	Restructuring and Other Charges In the first quarter of fiscal 2016, the Company closed its manufacturing facility located in New Haven, Indiana. The Company incurred restructuring and other charges during the first quarter of fiscal 2016 of approximately $3.4 million ( $2.1 million after the associated tax benefit), related to the facility closing. These charges include severance and benefit costs of approximately $1.7 million , lease termination costs of approximately $0.7 million , inventory-related charges of approximately $0.6 million , and other associated net costs, which include accelerated depreciation related to fixed assets, of approximately $0.4 million . These charges are reflected in cost of sales in the Company's Consolidated Financial Statements. Management expects that the facility closure will reduce operating costs by approximately $12.0 million annually. All production from the facility was absorbed by the Company’s third party manufacturing suppliers. There are no remaining liabilities associated with the facility closure. Additional charges affecting comparability of the financial results for the thirteen weeks ended April 30, 2016 and May 2, 2015 totaled approximately $3.1 million ( $2.1 million after the associated tax benefit) consisting of charges in the first quarter of fiscal 2016 of $1.3 million in employee severance (reflected in selling, general, and administrative expenses), $1.2 million due to a retail store early lease termination agreement (reflected in selling, general, and administrative expenses), and $0.6 million related to an increase in income tax reserves for uncertain federal and state tax positions related to research and development tax credits (reflected in income tax expense).

Short-Term Investments

Short-Term Investments	3 Months Ended
	Apr. 30, 2016
Cash and Cash Equivalents [Abstract]
Short-Term Investments	Short-Term Investments Short-term investments consist of a certificate of deposit with an original maturity of one year and a one-time option to accelerate maturity to 31 days without penalty. Interest income from the investment is included in interest expense, net, in the Company's Consolidated Financial Statements. The Company’s objective with respect to this investment is to earn a higher rate of return on funds that are otherwise not anticipated to be required to meet liquidity needs in the near term while maintaining a low level of investment risk with the positive intent and ability to hold this investment to maturity. As of April 30, 2016 , the Company held $30.0 million in short-term investments. The Company did not have short-term investments as of January 30, 2016 .

Segment Reporting

Segment Reporting	3 Months Ended
	Apr. 30, 2016
Segment Reporting [Abstract]
Segment Reporting	Segment Reporting The Company has two operating segments, which are also its reportable segments: Direct and 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 in deciding how to allocate resources and in assessing the performance of the segments. The Direct segment includes the Company’s full-line and factory outlet stores, the Company’s website, verabradley.com, direct-to-consumer eBay sales, and the annual outlet sale. Revenues generated through this segment are driven through the sale of Company-branded products from Vera Bradley to end consumers. The Indirect segment represents revenues generated through the distribution of Company-branded products to specialty retailers representing approximately 2,600 locations, substantially all of which are located in the United States, as well as key accounts, which include department stores, national accounts, third-party e-commerce sites, the Company's wholesale customer in Japan, and third-party inventory liquidators. Corporate costs represent the Company’s administrative expenses, which include, but are not limited to: human resources, legal, finance, information technology, design, merchandising, and various other corporate-level-activity-related expenses. All intercompany-related activities are eliminated in consolidation and are excluded from the segment reporting. Company management evaluates segment operating results based on several indicators. The primary or key performance indicators for each segment are net revenues and operating income. Net revenues and operating income information for the Company’s reportable segments during the thirteen weeks ended April 30, 2016 and May 2, 2015 , respectively, consisted of the following (in thousands): Thirteen Weeks Ended April 30, May 2, Segment net revenues: Direct $ 72,946 $ 70,433 Indirect 32,235 30,671 Total $ 105,181 $ 101,104 Segment operating income: Direct $ 12,137 $ 8,027 Indirect 12,598 9,904 Total $ 24,735 $ 17,931 Reconciliation: Segment operating income $ 24,735 $ 17,931 Less: Unallocated corporate expenses (20,878 ) (22,902 ) Operating income (loss) $ 3,857 $ (4,971 )

Description of the Company an19

Description of the Company and Basis of Presentation (Policies)	3 Months Ended
	Apr. 30, 2016
Accounting Policies [Abstract]
Basis of Accounting	The accompanying unaudited consolidated financial statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”). Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) have been omitted. These interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes included in the Company’s Annual Report on Form 10-K for the fiscal year ended January 30, 2016 , filed with the SEC.
Principles of Consolidation	Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. The Company has eliminated intercompany balances and transactions in consolidation.
Fiscal Periods	Fiscal Periods The Company’s fiscal year ends on the Saturday closest to January 31. References to the fiscal quarters ended April 30, 2016 , and May 2, 2015 , refer to the thirteen-week periods ended on those dates.
Recently Issued Accounting Pronouncements	Recently Issued Accounting Pronouncements Recently Adopted Accounting Pronouncements In March 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting . The updated guidance changes how companies account for certain aspects of share-based payment awards to employees, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as the classification of related matters in the statement of cash flows. The standard is effective for public entities for annual periods beginning after December 15, 2016, and interim periods within those annual periods. Early adoption is permitted. The Company early adopted this standard for the quarter ended April 30, 2016. The impact of the adoption of this standard was as follows: • approximately $55,000 of excess tax benefits was recorded through income tax expense as a discrete item, adopted on a prospective basis; • excess tax benefits were combined with other income tax cash flows within operating cash flows adopted on a prospective basis; and • cash paid by the Company when directly withholding shares to satisfy an employee's statutory tax obligations continued to be classified as a financing activity. • The Company has elected to continue its current policy of estimating forfeitures rather than recognizing forfeitures when they occur. Recently Issued Accounting Pronouncements Not Yet Adopted In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers . This guidance requires companies to recognize revenue in a manner that depicts the transfer of promised goods or services to customers in amounts that reflect the consideration to which a company expects to be entitled in exchange for those goods or services. The new standard also will result in enhanced disclosures about the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. The standard allows for either a full retrospective or a modified retrospective transition method. In August 2015, the FASB issued ASU 2015-14 to defer the effective date of ASU 2014-09 for all entities by one year to annual periods beginning after December 15, 2017, including interim periods within that reporting period, which for the Company is fiscal 2019. Earlier application is permitted as of the original effective date, annual reporting periods beginning after December 2016, including interim periods within that reporting period. The Company is currently evaluating the impact of this standard, including the transition method, on its consolidated results of operations, financial position and cash flows. In July 2015, the FASB issued ASU 2015-11, Inventory , which requires entities to measure inventory at the lower of cost and net realizable value. This guidance is effective for interim and annual periods beginning on or after December 15, 2016. The Company is currently evaluating this guidance and does not expect the application of this standard to have a material impact on the Company’s Consolidated Financial Statements upon adoption. In February 2016, the FASB issued ASU 2016-02, Leases , which increases transparency and comparability among organizations by requiring lessees to recognize assets and liabilities on the balance sheet for the rights and obligations created by leases and disclosing key information about leasing arrangements. This guidance is effective for interim and annual periods beginning on or after December 15, 2018. The Company is currently evaluating the impact of the standard on its Consolidated Financial Statements.

Earnings Per Share (Tables)

Earnings Per Share (Tables)	3 Months Ended
	Apr. 30, 2016
Earnings Per Share [Abstract]
Components of Basic and Diluted Net Income Per Share	The components of basic and diluted earnings per share were as follows (in thousands, except per share data): Thirteen Weeks Ended April 30, May 2, Numerator: Net income (loss) $ 2,418 $ (4,136 ) Denominator: Weighted-average number of common shares (basic) 37,547 39,884 Dilutive effect of stock-based awards 177 — Weighted-average number of common shares (diluted) 37,724 39,884 Earnings (loss) per share: Basic $ 0.06 $ (0.10 ) Diluted $ 0.06 $ (0.10 )

Inventories (Tables)

Inventories (Tables)	3 Months Ended
	Apr. 30, 2016
Inventory Disclosure [Abstract]
Components of Inventories	The components of inventories were as follows (in thousands): April 30, January 30, Raw materials $ — $ 151 Finished goods 113,412 113,439 Total inventories $ 113,412 $ 113,590

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	3 Months Ended
	Apr. 30, 2016
Compensation and Retirement Disclosure [Abstract]
Summary of Restricted-Stock Awards and Restricted-Stock Units	The following table sets forth a summary of restricted stock unit activity for the thirteen weeks ended April 30, 2016 (units in thousands): Time-based Restricted Stock Units Performance-based Restricted Stock Units Number of Units Weighted- Average Grant Date Fair Value (per unit) Number of Units Weighted- Average Grant Date Fair Value (per unit) Nonvested units outstanding at January 30, 2016 463 $ 18.05 303 $ 20.95 Granted 169 19.73 126 19.76 Vested (131 ) 18.58 — — Forfeited — — (46 ) 23.63 Nonvested units outstanding at April 30, 2016 501 $ 18.48 383 $ 20.24

Segment Reporting (Tables)

Segment Reporting (Tables)	3 Months Ended
	Apr. 30, 2016
Segment Reporting [Abstract]
Schedule of Net Revenues and Operating Income Information for Reportable Segments	Net revenues and operating income information for the Company’s reportable segments during the thirteen weeks ended April 30, 2016 and May 2, 2015 , respectively, consisted of the following (in thousands): Thirteen Weeks Ended April 30, May 2, Segment net revenues: Direct $ 72,946 $ 70,433 Indirect 32,235 30,671 Total $ 105,181 $ 101,104 Segment operating income: Direct $ 12,137 $ 8,027 Indirect 12,598 9,904 Total $ 24,735 $ 17,931 Reconciliation: Segment operating income $ 24,735 $ 17,931 Less: Unallocated corporate expenses (20,878 ) (22,902 ) Operating income (loss) $ 3,857 $ (4,971 )

Description of the Company an24

Description of the Company and Basis of Presentation - Additional Information (Detail) $ in Millions	3 Months Ended
	Apr. 30, 2016USD ($)StoreSegmentlocation	May. 02, 2015	Jan. 30, 2016USD ($)
Operating Leased Assets [Line Items]
Number of reportable segments | Segment	2
Number of full-line stores | Store	111
Number of factory outlet stores | Store	41
Number of specialty retail locations | location	2,600
Fiscal period duration	91 days	91 days
Deferred rent liability	$ 11.8		$ 11.5
Deferred lease credit liability	16.5		16.2
Other accrued liabilities [Member]
Operating Leased Assets [Line Items]
Deferred lease credit liability	2.3		2.3
Long-term liabilities [Member]
Operating Leased Assets [Line Items]
Deferred lease credit liability	$ 14.2		$ 13.9

Earnings Per Share - Components

Earnings Per Share - Components of Basic and Diluted Net Income Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Apr. 30, 2016	May. 02, 2015
Numerator:
Net income (loss)	$ 2,418	$ (4,136)
Denominator:
Weighted-average number of common shares (basic)	37,547	39,884
Dilutive effect of stock-based awards	177	0
Weighted-average number of common shares (diluted)	37,724	39,884
Earnings (loss) per share
Basic (in dollars per share)	$ 0.06	$ (0.10)
Diluted (in dollars per share)	$ 0.06	$ (0.10)

Fair Value of Financial Instr26

Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 30, 2016	May. 02, 2015
Fair Value Disclosures [Abstract]
Initial investment	$ 30,000	$ 0

Inventories - Components of Inv

Inventories - Components of Inventories (Detail) - USD ($) $ in Thousands	Apr. 30, 2016	Jan. 30, 2016
Inventory Disclosure [Abstract]
Raw materials	$ 0	$ 151
Finished goods	113,412	113,439
Total inventories	$ 113,412	$ 113,590

Debt - Additional Information (

Debt - Additional Information (Detail) - USD ($) $ in Millions	Apr. 30, 2016	Jan. 30, 2016
Debt Disclosure [Abstract]
Available borrowings under the credit agreement	$ 125	$ 125

Income Taxes - Additional Infor

Income Taxes - Additional Information (Detail)	3 Months Ended
	Apr. 30, 2016	May. 02, 2015
Income Tax Disclosure [Abstract]
Effective income tax rate	36.50%	18.10%

Stock-Based Compensation - Addi

Stock-Based Compensation - Additional Information (Detail) $ in Millions	3 Months Ended
	Apr. 30, 2016USD ($)shares	May. 02, 2015USD ($)shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock unit vesting and settlement ratio to common shares	1
Restricted-Stock Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total unrecognized compensation cost, net of estimated forfeitures, related to nonvested restricted stock units | $	$ 9.5
Weighted average period to recognize the total unrecognized compensation cost	1 year 11 months 22 days
Time-based Restricted Stock Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted-stock awards/units granted in period	169,000
Performance-based Restricted Stock Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted-stock awards/units granted in period	126,000
Restricted stock units vesting period, years	3 years
Restricted stock units required employee service period, years	3 years
2010 Equity and Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Issuance of common stock shares	6,076,001
2010 Equity and Incentive Plan [Member] | Restricted-Stock Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted-stock awards/units granted in period	295,148	562,630
Restricted-stock awards/units with an aggregate grant-date fair value | $	$ 5.8	$ 9.1
Non-Employee Director [Member] | Restricted-Stock Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock units vesting period, years	1 year

Stock-Based Compensation - Summ

Stock-Based Compensation - Summary of Restricted-Stock Awards and Restricted-Stock Units (Detail) shares in Thousands	3 Months Ended
	Apr. 30, 2016$ / sharesshares
Time-based Restricted Stock Units [Member]
Number of Units
Nonvested units outstanding, beginning balance | shares	463
Granted, Number of Units | shares	169
Vested, Number of Units | shares	(131)
Forfeited, Number of Units | shares	0
Nonvested units outstanding, ending balance | shares	501
Weighted- Average Grant Date Fair Value (per unit)
Weighted-Average Grant Date Fair Value (per unit), beginning balance | $ / shares	$ 18.05
Granted, Weighted-Average Grant Date Fair Value (per unit) | $ / shares	19.73
Vested, Weighted-Average Grant Date Fair Value (per unit) | $ / shares	18.58
Forfeited, Weighted-Average Grant Date Fair Value (per unit) | $ / shares	0
Weighted-Average Grant Date Fair Value (per unit), ending balance | $ / shares	$ 18.48
Performance-based Restricted Stock Units [Member]
Number of Units
Nonvested units outstanding, beginning balance | shares	303
Granted, Number of Units | shares	126
Vested, Number of Units | shares	0
Forfeited, Number of Units | shares	(46)
Nonvested units outstanding, ending balance | shares	383
Weighted- Average Grant Date Fair Value (per unit)
Weighted-Average Grant Date Fair Value (per unit), beginning balance | $ / shares	$ 20.95
Granted, Weighted-Average Grant Date Fair Value (per unit) | $ / shares	19.76
Vested, Weighted-Average Grant Date Fair Value (per unit) | $ / shares	0
Forfeited, Weighted-Average Grant Date Fair Value (per unit) | $ / shares	23.63
Weighted-Average Grant Date Fair Value (per unit), ending balance | $ / shares	$ 20.24

Common Stock (Details)

Common Stock (Details) - USD ($)	3 Months Ended
	Apr. 30, 2016	Jan. 30, 2016	Dec. 08, 2015	Sep. 09, 2014
Equity, Class of Treasury Stock [Line Items]
Average price per share of shares acquired (in dollars per share)	$ 14.42
Number of shares held in treasury	3,456,404
Value of treasury stock	$ 49,831,000	$ 44,147,000
The 2014 Share Repurchase Program [Member]
Equity, Class of Treasury Stock [Line Items]
Authorized amount under share repurchase program				$ 40,000,000
The 2015 Share Repurchase Program [Member]
Equity, Class of Treasury Stock [Line Items]
Authorized amount under share repurchase program			$ 50,000,000
Shares acquired as part of share repurchase program	354,052
Average price per share of shares acquired (in dollars per share)	$ 16.05
Remaining authorized repurchase amount	$ 40,200,000
Value of treasury stock	$ 5,700,000

Restructuring and Other Charg33

Restructuring and Other Charges (Details) $ in Millions	3 Months Ended
	Apr. 30, 2016USD ($)
Restructuring Cost and Reserve [Line Items]
Expected annual reduction in operating costs and expenses	$ 12
Other restructuring charges	3.1
Other restructuring charges, after tax	2.1
Facility Closing
Restructuring Cost and Reserve [Line Items]
Restructuring charges incurred	3.4
Restructuring charges incurred, after tax	2.1
Severance and Benefit Costs [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring charges incurred	1.7
Severance and Benefit Costs [Member] | Selling, general and administrative expenses [Member]
Restructuring Cost and Reserve [Line Items]
Other restructuring charges	1.3
Lease Termination Costs [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring charges incurred	0.7
Lease Termination Costs [Member] | Selling, general and administrative expenses [Member]
Restructuring Cost and Reserve [Line Items]
Other restructuring charges	1.2
Inventory-related charges [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring charges incurred	0.6
Other [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring charges incurred	0.4
Change in income tax reserves [Member] | Interest expense [Member]
Restructuring Cost and Reserve [Line Items]
Other restructuring charges	$ 0.6

Short-Term Investments Short-Te

Short-Term Investments Short-Term Investments (Details) - USD ($) $ in Thousands	Apr. 30, 2016	Jan. 30, 2016
Cash and Cash Equivalents [Abstract]
Short-term investments	$ 30,013	$ 0

Segment Reporting - Additional

Segment Reporting - Additional Information (Detail)	3 Months Ended
	Apr. 30, 2016Segmentlocation
Segment Reporting [Abstract]
Number of operating segments | Segment	2
Number of specialty retail locations | location	2,600

Segment Reporting - Schedule of

Segment Reporting - Schedule of Net Revenues and Operating Income Information for Reportable Segments (Detail) - USD ($) $ in Thousands	3 Months Ended
	Apr. 30, 2016	May. 02, 2015
Segment Reporting Information [Line Items]
Segment net revenues	$ 105,181	$ 101,104
Segment operating income	24,735	17,931
Unallocated corporate expenses	(20,878)	(22,902)
Operating income (loss)	3,857	(4,971)
Operating Segments [Member] | Direct [Member]
Segment Reporting Information [Line Items]
Segment net revenues	72,946	70,433
Segment operating income	12,137	8,027
Operating Segments [Member] | Indirect [Member]
Segment Reporting Information [Line Items]
Segment net revenues	32,235	30,671
Segment operating income	$ 12,598	$ 9,904

Uncategorized Items - vra-20160

Label	Element	Value
Repurchase of Common Stock Incurred but Not yet Paid	vra_RepurchaseofCommonStockIncurredbutNotyetPaid	$ 116,000
Repurchase of Common Stock Incurred but Not yet Paid	vra_RepurchaseofCommonStockIncurredbutNotyetPaid	426,000
Repurchase of Common Stock Incurred but Not yet Paid	vra_RepurchaseofCommonStockIncurredbutNotyetPaid	374,000
Repurchase of Common Stock Incurred but Not yet Paid	vra_RepurchaseofCommonStockIncurredbutNotyetPaid	436,000
Capital Expenditures Incurred but Not yet Paid	us-gaap_CapitalExpendituresIncurredButNotYetPaid	2,172,000
Capital Expenditures Incurred but Not yet Paid	us-gaap_CapitalExpendituresIncurredButNotYetPaid	3,173,000
Capital Expenditures Incurred but Not yet Paid	us-gaap_CapitalExpendituresIncurredButNotYetPaid	3,391,000
Capital Expenditures Incurred but Not yet Paid	us-gaap_CapitalExpendituresIncurredButNotYetPaid	$ 2,872,000