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Sales soar 10.5% at bebe stores in Q3 FY'12
04 May '12
5 min read
For the fourth quarter of fiscal 2012, the Company currently anticipates comparable store sales growth in the low-single digit range, as we are comparing to the strong performance of last year's fiscal fourth quarter.
Depending on actual sales and markdowns, the net income from continuing operations is expected to be in the range of $0.02 - $0.04 per share, compared to $0.06 per share in the prior year.
The prior year was positively affected by improved comparable store sales, significant improvement in merchandise margin, and leverage on SG&A. Given the growth strategies the Company put in place, our SG&A for the current year assumes higher compensation, advertising and other expenses, including certain one-time costs relating to the planned transition of bebe.com to a company managed platform.
The Company and the bebe.com third party service provider have entered into a termination agreement. We anticipate migrating to a company managed platform in the first quarter of fiscal 2013.
In addition, as part of the Company's long-term strategy to manage store distribution as well as direct to consumer fulfillment for both bebe.com and 2bstores.com, the Company has purchased its existing distribution facility in Benicia, California for $18 million. The company believes both of these decisions will support its long-term growth objectives across its multi-channel platform.
For the year-to-date period the Company's capital expenditures were approximately $17.5 million and depreciation expense from continuing operations was approximately $15.1 million. Depreciation for the year will be approximately $21 million. Total capital expenditures for the year, excluding the purchase of the distribution center, are anticipated to be $27 million which will include capital expenditures for new stores, remodels, store expansions, information technology systems and office improvements.
The Company is currently anticipating an effective tax rate of approximately 41.0% for fiscal 2012.
For the fourth quarter of fiscal 2012, the Company is currently planning finished goods inventory to increase in the mid-single digit range on a per square foot basis compared to the increase of 1% in the fourth quarter of fiscal 2011.
bebe stores, inc. designs, develops and produces a distinctive line of contemporary women's apparel and accessories, which it markets under the bebe, BEBE SPORT, bbsp and 2b bebe brand names.
Depending on actual sales and markdowns, the net income from continuing operations is expected to be in the range of $0.02 - $0.04 per share, compared to $0.06 per share in the prior year.
The prior year was positively affected by improved comparable store sales, significant improvement in merchandise margin, and leverage on SG&A. Given the growth strategies the Company put in place, our SG&A for the current year assumes higher compensation, advertising and other expenses, including certain one-time costs relating to the planned transition of bebe.com to a company managed platform.
The Company and the bebe.com third party service provider have entered into a termination agreement. We anticipate migrating to a company managed platform in the first quarter of fiscal 2013.
In addition, as part of the Company's long-term strategy to manage store distribution as well as direct to consumer fulfillment for both bebe.com and 2bstores.com, the Company has purchased its existing distribution facility in Benicia, California for $18 million. The company believes both of these decisions will support its long-term growth objectives across its multi-channel platform.
For the year-to-date period the Company's capital expenditures were approximately $17.5 million and depreciation expense from continuing operations was approximately $15.1 million. Depreciation for the year will be approximately $21 million. Total capital expenditures for the year, excluding the purchase of the distribution center, are anticipated to be $27 million which will include capital expenditures for new stores, remodels, store expansions, information technology systems and office improvements.
The Company is currently anticipating an effective tax rate of approximately 41.0% for fiscal 2012.
For the fourth quarter of fiscal 2012, the Company is currently planning finished goods inventory to increase in the mid-single digit range on a per square foot basis compared to the increase of 1% in the fourth quarter of fiscal 2011.
bebe stores, inc. designs, develops and produces a distinctive line of contemporary women's apparel and accessories, which it markets under the bebe, BEBE SPORT, bbsp and 2b bebe brand names.
bebe stores inc
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