bebe stores (NASDAQ: BEBE) reported Q1 EPS of ($0.16), in-line with the analyst estimate of ($0.16). Revenue for the quarter came in at $96.3 million versus the consensus estimate of $97.69 million.

Comparable store sales for the quarter ended October 3, 2015, decreased 4.1% compared to an increase of 0.7% in the comparable period of the prior year.

Second quarter and fiscal 2016 guidance:

For the second quarter of fiscal 2016, the Company expects comparable store sales to be in the negative high single digit range due to the current sales trends, recent merchandising process changes and the related product cancellations which began in October 2015. This compares to an 8% comparable stores sales growth in the second quarter of last year. Gross margin is expected to be slightly lower than the prior year due to the anticipated promotional activities to clear the inventory for this period. The net loss per share is expected to be in the $0.06 to $0.12 range. The expected net loss per share range also reflects the continuing impact of maintaining a valuation allowance against deferred tax assets, and thus a close to 0% effective tax rate.

Finished goods inventory per square foot at the end of the second quarter of fiscal 2016 is expected to increase in the high single digit range compared to the second quarter of fiscal 2015. The anticipated increase in inventory is primarily due to planned floor set and promotional strategy shifts in January 2016.

Total capital expenditures for the fiscal year are anticipated to be approximately $5 million for new stores, remodels and information technology systems net of tenant allowance.

For fiscal year 2016, the Company plans to open four bebe stores and four outlet stores, and to close up to 30 bebe and outlet stores, which will result in an approximately 8% decrease in total store square footage from the end of fiscal year 2015. The planned store closures are the result of the Company’s strategic decision to downsize its domestic retail footprint while growing its international and domestic wholesale channels. The Company anticipates it may close up to 50 stores in the next two years primarily as store leases expire or kick out clauses are triggered.

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