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 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.