bebe stores reports decline in revenue in fiscal Q2

10 Jan '11

2 min read

bebe stores inc reported retail sales of $132.7 million for the second quarter ended January 1, 2011, a decrease of 2% compared to sales of $135.5 million for the fiscal quarter ended January 2, 2010. Same store sales for the fiscal quarter ended January 1, 2011 were flat compared to a decrease of 22.5% in the prior year.

Retail sales for the year-to-date period ended January 1, 2011 were $244.7 million compared to $255.7 million for the year-to-date period ended January 2, 2010 a decrease of 4.3%. Comparable store sales for the year-to-date period ending January 1, 2011 decreased 2.3% compared to a decrease of 24.1% for the year-to-date period ending January 2, 2010.

As of January 1, 2011, average finished goods inventory per square foot increased approximately 9% compared to the prior year.

We currently anticipate net earnings from continuing operations will be at the low-end of our previously guided $0.02 - $0.06 earnings per share prior to any store impairment charges and legal settlement costs. While comparable store sales for the month of October and November were positive, week three and four of December were below our expectation and as a result we were more promotional in week five. The additional promotion negatively impacted our gross margin, and contributed to our earnings being at the lower end of previously provided guidance.

We have closed all the PH8 stores as of January 1, 2011 as previously suggested.

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