Segment Reporting

6 Months Ended

Jul. 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 and twenty-six weeks ended July 30, 2016 and August 1, 2015, respectively, consisted of the following (in thousands):

	Thirteen Weeks Ended						Twenty-Six Weeks Ended
	July 30, 2016			August 1, 2015			July 30, 2016			August 1, 2015
Segment net revenues:
Direct	$	87,241		$	83,775		$	160,187		$	154,208
Indirect	32,004			36,949			64,239			67,620
Total	$	119,245		$	120,724		$	224,426		$	221,828
Segment operating income:
Direct	$	18,149		$	16,557		$	30,286		$	24,584
Indirect	12,008			14,788			24,606			24,692
Total	$	30,157		$	31,345		$	54,892		$	49,276
Reconciliation:
Segment operating income	$	30,157		$	31,345		$	54,892		$	49,276
Less:
Unallocated corporate expenses	(21,854		)	(21,859		)	(42,732		)	(44,761		)
Operating income	$	8,303		$	9,486		$	12,160		$	4,515