bebe stores inc announced unaudited financial results for the third quarter ended April 4, 2009.
Net sales for the quarter ended April 4, 2009 were $127.7 million versus $151.7 million reported for the quarter ended April 5, 2008. Sales decreased 15.8% compared to the corresponding quarter in the prior year. Same store sales for the quarter ended April 4, 2009 decreased 23.5% compared to a decrease of 7.6% for the prior year quarter.
Gross margin as a percentage of net sales decreased to 37.8% in the third quarter of fiscal 2009, compared to 43.8% in the third quarter of fiscal 2008. The decrease in gross margin as a percentage of net sales from the prior year of 6.0% was primarily due to unfavorable occupancy leverage and to a lesser extent higher markdowns.
SG&A expenses for the third quarter of fiscal 2009 were $56.8 million, or 44.5% of net sales, compared to $59.0 million, or 38.9% of net sales for the same period of the prior year. The decrease in dollars in SG&A expense is primarily due to lower total compensation expense offset by an increase in depreciation expense and approximately $2.5 million in impairment charges and fixed asset write-offs related to underperforming stores and store closures.
The effective tax rate for the third quarter of fiscal 2009 increased to 35.3% from 33.6% in the third quarter of fiscal 2008 primarily due to deleveraging of permanent items, including stock based compensation expense and lower tax exempt interest income as a percent of taxable income.
Net loss for the third quarter is $5.0 million compared to net income of $8.3 million for the same period in the prior year. Diluted loss per share for the third quarter of fiscal 2009 was $0.06 which includes $.02 per share for the impairment charges and fixed asset write-offs related to underperforming stores and store closures on 87.4 million diluted weighted average shares outstanding compared to net income of $0.09 per share on 90 million diluted weighted average shares outstanding for the third quarter of fiscal 2008. Year-to-date we have purchased 2.4 million shares under our Board of Director approved stock purchase program.
Net sales for the year-to-date period ended April 4, 2009 were $472.8 million, a decrease of 8.4% from $516.1 million for the year-to-date period ended April 5, 2008. Same store sales for the year-to-date period ended April 4, 2009 decreased 18.2% compared to a decrease of 8.3% in the prior year.
Net income for the year-to-date period ended April 4, 2009 is $13.0 million compared to $47.1 million in the prior year. Diluted earnings per share for the year-to-date period ended April 4, 2009 is $0.15 compared to $0.51 per share in the prior year.
During the quarter ended April 4, 2009, the Company opened one 2b bebe store, closed three bebe stores and two SPORT stores, where leases had expired and not renewed, and converted one bebe Outlet store to a 2b bebe store resulting in a reduction of total square footage of 1%.
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