Segment Reporting

9 Months Ended

Oct. 28, 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 thirty-nine weeks ended October 28, 2017 and October 29, 2016, respectively, consisted of the following (in thousands):

	Thirteen Weeks Ended						Thirty-Nine Weeks Ended
	October 28, 2017			October 29, 2016			October 28, 2017			October 29, 2016
Segment net revenues:
Direct	$	83,168		$	86,101		$	241,347		$	246,288
Indirect	30,927			40,561			81,301			104,800
Total	$	114,095		$	126,662		$	322,648		$	351,088
Segment operating income:
Direct	$	11,238		$	17,104		$	35,362		$	47,390
Indirect	10,519			16,920			27,797			41,526
Total	$	21,757		$	34,024		$	63,159		$	88,916
Reconciliation:
Segment operating income	$	21,757		$	34,024		$	63,159		$	88,916
Less:
Unallocated corporate expenses	(21,295		)	(22,622		)	(63,792		)	(65,354		)
Operating income (loss)	$	462		$	11,402		$	(633	)	$	23,562