Apparel retailer Bebe Stores halves Q3FY15 net loss
Net loss from continuing operations for the third fiscal quarter ended April 4, 2015 more than halved at NASDAQ listed and US apparel retailer Bebe Stores.
Bebe Stores said in the third quarter of fiscal 2015, net loss from continuing operations totaled $10.9 million, or $0.14 per share as against net loss of $22.8 million, or $0.29 per share in the prior fiscal third quarter.
“Included in loss from continuing operations for the third quarter of fiscal 2014 were $3.4 million costs,” the clothing retailer added in a press release.
Including a loss from discontinued operations of $0.4 million, net loss for the third quarter of fiscal 2015 was $11.2 million, representing $0.14 loss per share.
Loss from discontinued operations during the third quarter of both fiscals reflects the operating results of the 2b business, which was shut down on July 5, 2014.
For the third quarter of fiscal 2015, the loss in the discontinued operations is primarily related to additional lease termination costs based on landlord negotiations.
Net sales from continuing operations increased 4.1 per cent to $92.7 million, as compared to $89.0 million in the third quarter of fiscal 2014.
Comparable store sales from continuing operations for the quarter ended April 4, 2015, however rose slower at 1.2 per cent year on year.
“Growth in the reporting quarter was primarily driven by higher average unit retail in the Bebe and outlet businesses, international expansion and the benefit from a shift in the date of Easter,” it explained.
Gross margin from continuing operations as a percentage of net sales improved to 30.4 per cent as against 27.5 per cent in the third quarter of fiscal 2014.
“The increase in margin primarily reflects fewer markdowns and promotions during the quarter,” Bebe Stores observed.
SG&A expenses from continuing operations were down to $39.0 million, or 42.1 per cent compared to $47.4 million or 53.2 per cent of net sales for the same period in the prior year.
“SG&A expenses decreased as the result of store closures as well as cost cutting initiatives in the areas of compensation, marketing and repairs and maintenance,” it added.
During the quarter ended April 4, 2015, the Company opened two Bebe stores and closed nine Bebe stores and one outlet store.
CEO Jim Wiggett said, “Our third quarter results reflect continued progress in our turnaround with the third consecutive quarter of comparable store sales growth.”
“This happened; despite significantly fewer promotions and a meaningful reduction in marketing spend and to a lesser degree, port delays and prolonged cold weather also created pressure on our sales,” he too added.
“Looking ahead, we are encouraged by the progress we have made on our strategic initiatives and see growth opportunity through increased store productivity and development of our ecommerce strategy,” Wiggett noted.
Bebe currently operates 166 Bebe retail stores including the online store bebe.com, and 35 Bebe outlet stores. (AR)
Fibre2fashion News Desk - India