bebe stores (BEBE) Misses Q4 EPS by 1c, Offers Guidance, Withdraws Shelf Registration

bebe stores (NASDAQ: BEBE) reported Q4 EPS of ($0.05), $0.01 worse than the analyst estimate of ($0.04). Revenue for the quarter came in at $104.3 million versus the consensus estimate of $106.33 million .Fourth quarter comparable store sales grew 1.1%

First quarter and fiscal 2016 guidance:

For the first quarter of fiscal 2016, the Company expects comparable store sales to be in the negative mid-single digit range. Gross margin is expected to be lower than the prior year due to higher markdowns in the beginning of the quarter to clear through excess inventory due to product miss of the July Bohemian collection. The net loss per share is expected to be in the high teens. The expected net loss per share range also reflects the continuing impact of maintaining a valuation allowance against deferred tax assets as discussed above and thus a close to 0% effective tax rate.

Finished goods inventory per square foot as of the end of fiscal first quarter 2016 is anticipated to increase in the mid-teens compared to the first quarter of fiscal 2015. The expected increase in inventory is primarily due to a shift in floor set planning for the calendar year 2015, resulting from accelerated receipts, coupled with a cost per unit increase associated with made for outlet products.

Total capital expenditures for the year are anticipated to be approximately $5 million for new stores, remodels and information technology systems. Depreciation for the year is anticipated to be approximately $17 million.

The Company will continue to evaluate whether dividend payments should be made on a quarterly basis. No dividend was declared for the fourth quarter of fiscal 2015.

For fiscal year 2016, the Company plans to open up to 6 bebe stores and outlet stores, and to close up to 12 bebe and outlet stores, which will result in approximately a 2% decrease in total store square footage from the end of fiscal year 2015. In addition, the number of points of distribution managed by our international licensees is expected to increase up to 12 for the fiscal year.

Withdrawal of Shelf Registration:

The Company announced today that it will be withdrawing its previously filed shelf registration statement of 46,914,055 shares of its common stock held by certain selling shareholders affiliated with the Company’s chairman, Manny Mashouf.

For earnings history and earnings-related data on bebe stores (BEBE) click here.

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