Bebe Stores (BEBE) Reports 1Q Miss and Weak Guidance; Mizuho Securities Remains Neutral

Mizuho Securities reiterated a Neutral rating on bebe stores, inc. (NASDAQ: BEBE), and cut the price target to $0.80 (from $1.00), following the company's 1Q earnings report. BEBE reported 1Q EPS of $(0.22), below the Street’s $(0.16), on weaker sales and higher SG&A. Management guided to an EPS loss of $0.06-0.12, below consensus expectations for a modest gain of $0.02.

Analyst Betty Chen commented, "We are lowering our PT to $0.80 (from $1) and remain sidelined on shares of BEBE following its 1Q earnings miss and below consensus 2Q guide. While we applaud management’s effort to further rationalize the fleet as they pursue Wholesale and Int'l opportunities, we see tougher compares and ongoing merchandising and team reorganization as hurdles in BEBE’s turnaround."

For an analyst ratings summary and ratings history on bebe stores, inc. click here. For more ratings news on bebe stores, inc. click here.

Shares of bebe stores, inc. closed at $0.95 yesterday.

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