Thursday, women's apparel designer Bebe Stores, Inc.(BEBE), reported a slip to loss in the fourth quarter, reflecting lower sales and decreased same store sales, as well as falling margins. Looking ahead, the company said it expects to report earnings per share in the range of breakeven per share to a loss of $0.05 per share for the first quarter of fiscal year 2010.
The Brisbane, California-based company reported a fourth quarter net loss of $0.32 million or breakeven per share, compared to net earnings of $16.0 million or $0.18 per share in the prior-year quarter.
The results for the quarter included $0.04 per share after tax in employee acquisition and termination costs.
On average, 13 analysts polled by Thomson Reuters expected the company to earn $0.01 per share for the quarter. Analysts' estimate typically exclude one-time charges and gains.
Quarterly sales slipped 24% to $130.20 million from $171.50 million last year, while same store sales decreased 29.6%, compared to a drop of 5.6% last year. Analysts had a consensus revenue estimate of $129.42 million for the quarter.
Gross margin for the quarter dropped to 39.5% from 45.8% in the year-earlier quarter, primarily due to unfavorable occupancy leverage and higher markdowns partially offset by a decrease in other costs.
Operating loss for the quarter was $4.50 million , compared to operating income of $20.50 million in the year-ago quarter.
Selling, general & administrative expenses for the quarter declined to $55.9 million from the year-earlier quarter.
Bebe Stores declared a quarterly cash dividend of $0.025 per share payable on September 30 to stockholders of record as of the close of business on September 18, 2009.
For the full-year, net earnings plunged to $12.64 million or $0.14 per share from $63.10 million or $0.69 per share last year. Net sales for the period dropped 12% to $603.00 million from $687.62 million in the same period last year, while same store sales for the year-to-date period decreased 20.9%, compared to a decrease of 7.6% in the prior year.
Analysts expected earnings of $0.16 per share, on revenues of $600.65 million for the full year.
Looking ahead to the first quarter of fiscal year 2010, Bebe Stores anticipates comparable stores sales to be less negative than the incoming trend and depending on actual markdowns earnings per share before write-offs to be in the range of breakeven to a loss of $0.05 per share.
The Street currently estimates earnings of $0.17 per share for the fiscal year 2010.
For the full year, the company anticipates opening six Bebe stores, expanding one Bebe store and closing up to thirteen stores .
BEBE closed Thursday's trading at $7.92, up $0.18 or 2.33%, on a volume of 0.76 million shares on the Nasdaq. In after hours, the stock lost $0.29 or 3.66%, trading at $7.63.
For comments and feedback contact: editorial@rttnews.com
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.