Home / Knowledge / News / Apparel/Garments / Rise in markdowns impact Q1 FY'14 bebe Store margins
Rise in markdowns impact Q1 FY'14 bebe Store margins
08
Nov '13
bebe stores, inc. announced financial results for the fiscal first quarter ended October 5, 2013.

For the first quarter of fiscal 2014:

Net sales were $114.1 million, a decrease of 2.6% from $117.1 million reported for the first quarter a year ago. Comparable store sales for the quarter ended October 5, 2013 decreased 2.8% compared to a decrease of 8.7% in the comparable period of the prior year and 7.1% in the fourth quarter of fiscal 2013. The sequential improvement in sales was driven by slight improvement in both traffic and conversion.

Gross margin decreased to 35.6% compared to 36.1% in the first quarter of fiscal 2013. The decrease in gross margin was primarily due to the increase in markdowns to clear through legacy products.

SG&A expenses were $50.1 million, or 43.8% of net sales, compared to $46.2 million, or 39.5% of net sales, for the same period in the prior year. The dollar increase in SG&A expenses was primarily attributable to the earlier timing of marketing events and internal sales conference expenses.

Net loss for the first quarter of fiscal 2014 was $9.2 million, or $0.12 per share, on 79.1 million shares outstanding compared to net loss of $2.6 million, or $0.03 per share, on 84.4 million shares outstanding for the same period of the prior year. Note that the fiscal 2014 net loss reflects the continuing impact of maintaining a valuation allowance against deferred tax assets and thus our effective tax rate approximates 0%.

During the quarter ended October 5, 2013, the Company opened one outlet store and closed six bebe stores and two 2b bebe stores.

Steve Birkhold, Chief Executive Officer, commented, “Fiscal first quarter 2014 marks the beginning of our turnaround journey. We saw a favorable response to our new merchandising strategy while we continued to clear through legacy merchandise during the quarter. While the retail environment remains difficult, we continue to focus on our turnaround initiatives and remain confident that we are taking the right strategic direction. Looking ahead, we will focus on executing our transitional strategies as we move forward. I would like to thank our shareholders for their support as we continue our work to transform the business and focus on sustainable growth in the long-term.”

Click here to view full results.

bebe stores

Must ReadView All

Courtesy: Myntra

Apparel/Garments | On 3rd Dec 2016

Myntra to be EBITA positive by FY18: CEO Narayanan

Myntra is on track to achieve sustainable growth and be EBITA...

Courtesy: India ITME Society

Textiles | On 3rd Dec 2016

India ITME 2016 opens with over 1050 exhibitors

The India International Textile Machinery Exhibition (India ITME)...

Courtesy: Bruckner

Textiles | On 3rd Dec 2016

Indian textile companies opt for Brückner stenter lines

Indian textile firms Laxmipati Sarees, makers of polyester sarees and ...

Interviews View All

Janak Dhamanwala & Sunil Dhamanwala
Jansun

Moving towards sustainability is also a social change

Abhimanyu Singh Rathore & Barbara Anna Kosiorek
Kannbar

‘Blending cultures is the true beauty of fashion, where one’s imagination...

Saket Garg
Garg Corporation

The biggest challenge is lack of skilled workforce and competition from...

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
December 2016

December 2016

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


Advanced Search