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bebe stores announces Q3 earnings of $0.09 per share
02 May '08
5 min read
Net income for the third quarter is $8.3 million compared to $12.9 million for the same period in the prior year. Diluted earnings per share for the third quarter is $0.09 compared to $0.14 per share in the prior year.
Before the impairment charge of $773,000 related to the three underperforming stores, diluted earnings per share and net income would have been $0.10 and $8.9 million, respectively. The prior year earnings per share included approximately $0.02 per share related to the additional week in fiscal 2007.
Net sales for the year-to-date period ended April 5, 2008 were $516.1 million, up 1.6% from $508.2 million for the year-to-date period ended April 7, 2007. Fiscal 2007 includes an additional week of sales due to the 53rd week in fiscal 2007.
Same store sales for the year-to-date period ended April 5, 2008 decreased 8.3% compared to an increase of 5.9% in the prior year. Due to the 53rd week in fiscal 2007, same store sales exclude the additional week from fiscal January 2007.
Net income for the year-to-date period ended April 5, 2008 is $47.1 million compared to $57.6 million in the prior year. Diluted earnings per share for the year-to-date period ended April 5, 2008 is $0.51 compared to $0.61 per share in the prior year.
As of April 5, 2008, we had cash and investments totaling approximately $355 million of which approximately $271 million were invested in auction rate securities (ARS). Due to the recent failures of these auctions we are in the process of evaluating the proper classification and amount of any potential impairment charge.
Because our ARS are comprised of federally insured student loan backed securities and insured municipal and education authority bonds we believe the impairment to be temporary. Therefore we anticipate recording an unrealized loss in the other comprehensive income component of shareholders' equity in our third quarter 10-Q filing.
During the quarter ended April 5, 2008, the Company opened four stores, including three bebe stores and one BEBE SPORT store, closed four bebe stores, where leases had expired and not renewed, and expanded one existing bebe store resulting in total square footage growth of 1%.
For the year-to-date period the Company's capital expenditures were approximately $27 million and depreciation expense was approximately $16.6 million.
For the fourth quarter of fiscal 2008, the Company anticipates comparable store sales will be consistent with the prior two quarters and earnings per share will be in the range of $0.15 to $0.19 per share based on 90 million diluted weighted average shares outstanding, which reflect the reduction of 5 million shares repurchased in the first fiscal quarter, versus $0.21 per share based on 95 million diluted weighted average shares outstanding in the fourth quarter of fiscal 2007. The Company is currently anticipating an effective tax rate of 35.0% for the fourth quarter of fiscal 2008.
For the fourth quarter of fiscal 2008, the Company is currently planning finished goods inventory to be down on a per square foot basis compared to the fourth quarter of fiscal 2007 in the low to mid-single digit range.
Before the impairment charge of $773,000 related to the three underperforming stores, diluted earnings per share and net income would have been $0.10 and $8.9 million, respectively. The prior year earnings per share included approximately $0.02 per share related to the additional week in fiscal 2007.
Net sales for the year-to-date period ended April 5, 2008 were $516.1 million, up 1.6% from $508.2 million for the year-to-date period ended April 7, 2007. Fiscal 2007 includes an additional week of sales due to the 53rd week in fiscal 2007.
Same store sales for the year-to-date period ended April 5, 2008 decreased 8.3% compared to an increase of 5.9% in the prior year. Due to the 53rd week in fiscal 2007, same store sales exclude the additional week from fiscal January 2007.
Net income for the year-to-date period ended April 5, 2008 is $47.1 million compared to $57.6 million in the prior year. Diluted earnings per share for the year-to-date period ended April 5, 2008 is $0.51 compared to $0.61 per share in the prior year.
As of April 5, 2008, we had cash and investments totaling approximately $355 million of which approximately $271 million were invested in auction rate securities (ARS). Due to the recent failures of these auctions we are in the process of evaluating the proper classification and amount of any potential impairment charge.
Because our ARS are comprised of federally insured student loan backed securities and insured municipal and education authority bonds we believe the impairment to be temporary. Therefore we anticipate recording an unrealized loss in the other comprehensive income component of shareholders' equity in our third quarter 10-Q filing.
During the quarter ended April 5, 2008, the Company opened four stores, including three bebe stores and one BEBE SPORT store, closed four bebe stores, where leases had expired and not renewed, and expanded one existing bebe store resulting in total square footage growth of 1%.
For the year-to-date period the Company's capital expenditures were approximately $27 million and depreciation expense was approximately $16.6 million.
For the fourth quarter of fiscal 2008, the Company anticipates comparable store sales will be consistent with the prior two quarters and earnings per share will be in the range of $0.15 to $0.19 per share based on 90 million diluted weighted average shares outstanding, which reflect the reduction of 5 million shares repurchased in the first fiscal quarter, versus $0.21 per share based on 95 million diluted weighted average shares outstanding in the fourth quarter of fiscal 2007. The Company is currently anticipating an effective tax rate of 35.0% for the fourth quarter of fiscal 2008.
For the fourth quarter of fiscal 2008, the Company is currently planning finished goods inventory to be down on a per square foot basis compared to the fourth quarter of fiscal 2007 in the low to mid-single digit range.
bebe stores inc
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