Segment Reporting

6 Months Ended

Jul. 29, 2017

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 2,400 locations, substantially all of which are located in the United States; 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; and licensing.

Corporate costs represent the Company’s administrative expenses, which include, but are not limited to: human resources, legal, finance, information technology, design, merchandising, corporate-level marketing and advertising, 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 (loss) information for the Company’s reportable segments during the thirteen and twenty-six weeks ended July 29, 2017 and July 30, 2016, respectively, consisted of the following (in thousands):

	Thirteen Weeks Ended						Twenty-Six Weeks Ended
	July 29, 2017			July 30, 2016			July 29, 2017			July 30, 2016
Segment net revenues:
Direct	$	89,342		$	87,241		$	158,179		$	160,187
Indirect	23,076			32,004			50,374			64,239
Total	$	112,418		$	119,245		$	208,553		$	224,426
Segment operating income:
Direct	$	17,312		$	18,149		$	24,124		$	30,286
Indirect	7,832			12,008			17,278			24,606
Total	$	25,144		$	30,157		$	41,402		$	54,892
Reconciliation:
Segment operating income	$	25,144		$	30,157		$	41,402		$	54,892
Less:
Unallocated corporate expenses	(21,435		)	(21,854		)	(42,497		)	(42,732		)
Operating income (loss)	$	3,709		$	8,303		$	(1,095	)	$	12,160