bebe stores (BEBE) Reports Q2 Loss of $0.65/Share

bebe stores (NASDAQ: BEBE) reported Q2 EPS of ($0.65), versus ($0.68) reported last year. Revenue for the quarter came in at $101.9 million, versus $122.4 million reported last year.

Second quarter comparable store sales decreased 10.5%

Fiscal 2017 guidance:

Consistent with the period beginning October 30, 2016 and ending November 19, 2016, mall traffic was below expectations for the first three weeks of the current fiscal quarter ending January 21, 2017. However we are seeing improvement in traffic and comparable store sales although both measures continue to trend negative to the prior year. While we expect to see further improvement, we expect both will finish negative for the quarter. Contributing to the comparable store sales decrease is a reduction in the number and frequency of in-store and on-line promotions and markdowns which are consistent with our strategic initiative to protect the brand image and improve gross margin.

Finished goods inventory per square foot is anticipated to decrease for the remained of the fiscal year compared to the prior year as we implement the strategic plan discussed in the fiscal 2016 year ended earnings release.

Total capital expenditures for the year are anticipated to be approximately $6 million for relocation, remodels and information technology systems. Depreciation for the year is anticipated to be approximately $17 million.

For fiscal year 2017, the Company does not plan to open any new store locations and to close up to 25 bebe and outlet stores, which will result in a decrease in total store square footage of approximately 16% from the end of fiscal year 2016.

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

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