A nostalgic mall staple is shrinking its store footprint as it works to revive the business and reposition the once-popular brand.
The retailer built a recognizable presence across U.S. malls over several decades, but its retail strategy is changing as it looks to improve profitability and adapt to shifting consumer demand. The effort includes a continued pullback from physical stores, with more locations closing in 2026.
Founded in 1982, Vera Bradley (VRA) designs, manufactures, and markets handbags, luggage, and accessories for women. The company is known for its distinctive quilted designs and colorful patterns, which have long been central to its identity.
Vera Bradley closes 14 stores
Vera Bradley’s store count fell by 14 locations year over year as of Aug. 1, 2026, leaving the retailer with 112 stores at the end of the second quarter of fiscal 2027, according to its latest earnings report.
The latest closures add to a multiyear reduction in Vera Bradley’s physical footprint as the company shifts its focus toward profitability, digital channels, and a more streamlined store network.
For the full year of fiscal 2026, Vera Bradley closed 12 full-line stores and one outlet location, while opening two full-line stores, its earnings report indicated.
With closures significantly outpacing openings, Vera Bradley is continuing to reduce its physical store network.
Why Vera Bradley is closing stores
The closures come as Vera Bradley undergoes a broader transformation of its business.
The company unveiled Project Sunshine at the end of last year, a multi-year turnaround strategy aimed at restoring profitability and operational excellence.
The initiative consists of five pillars, including:
- Sharpening brand focus
- Resetting go-to-market approach
- Rewiring digital ecosystem
- Implementing Outlet 2.0
- Reimagining how it works as an organization
As part of this strategy, Vera Bradley is investing in connectivity across its digital platforms, marketplace partnerships, and emerging channels such as social commerce. The company said these efforts are intended to support its wholesale accounts and drive traffic to its stores.
Outlet 2.0 is designed to create a more unified brand experience across sales channels. The company said its test stores registered improved sales, conversion, and gross-margin metrics compared with its control group of stores.
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Vera Bradley sees early signs of improvement
Despite the store closures, Vera Bradley is reporting early signs of improvement as it implements its turnaround strategy.
During the second quarter of fiscal 2027, the company’s net revenue increased 1.1% year over year, while direct-channel comparable sales rose 9.2%, driven by growth in both full-price and outlet channels.
The direct channel, which includes stores and digital platforms, accounts for about 90% of Vera Bradley’s business and has now posted two consecutive quarters of positive growth.
However, indirect channel revenue declined 39%, which the company attributed to intentional shifts in marketplace-strategy timing and a reduction in liquidation sales.
Gross profit margin also climbed to 59.8% from 49.9% in the prior year, primarily driven by $7.7 million in tariff refunds.
Vera Bradley reduced inventory levels by 28.4% due to improved assortment planning, as the retailer works to better align its merchandise with consumer demand.
The company said it is now past the halfway point in working through its legacy inventory, which it calls Project Restoration.
“There’s still significant work ahead of us, but I remain encouraged by what our second quarter results show,” Vera Bradley CEO Ian Bickley said in the company’s latest earnings call.
Other mall retailers are also closing stores
Vera Bradley is not the only mall staple reassessing its physical footprint. Several major retailers have closed stores or confirmed additional shutdowns as they adjust to changing consumer demand and shifting market conditions.
Here’s some of my previous coverage of recent store closures:
- Victoria’s Secret: Closed 38 locations between Jan. 31 and Aug. 1, 2026, as part of its turnaround plan.
- Dick’s Sporting Goods: Closed 113 stores across its portfolio during fiscal 2026 through the second quarter as it reviews “unproductive assets.”
- Urban Outfitters: Closed six company-owned locations across its brands in the six months ended July 31, 2026.
- Nike: Closed nearly a dozen stores during July 2026.
Related: Nearly 200-year-old retailer exits an entire market
