Headquartered in Brisbane, California,
Bebe Stores Inc
) recently reported weak same store (comps) as well as retail sales
results for the fourth quarter of fiscal 2012 ending on June 30,
2012. The company will announce its total sales figure with its
fourth-quarter earnings release, which will include wholesale as
well as other sales.
The company stated that total retail sales of $119.1 million for
the reported quarter, inched down 2.5% from $122.4 million in the
prior-year quarter ending on July 2, 2011. Comps declined 2.5% year
over year for the quarter compared with an increase of 7.5% in the
year-ago period, missing its guidance of low-single-digit growth.
The decline in retail sales and comps were primarily due to lower
traffic at the company's stores.
However, Bebe's total retail sales for fiscal 2012 increased
5.2% to $484.2 million from $460.1 million reported in the
prior-year period. Moreover, during the period, the company also
registered a 5.3% growth in its comps compared with a rise of 0.6%
achieved in fiscal 2011. As of June 30, 2012, the company
registered a 2% growth in average inventory per square foot
compared with 1% increase in fiscal 2011.
The company is aggressively focusing on developing multi-channel
retail format by enhancing its e-commerce capabilities. Moreover,
during third-quarter of fiscal 2012 Bebe purchased a distribution
facility in Benicia, California, which reflects its long-term
strategy of managing store distribution and online customer.
Further, in a drive to expand its international business, Bebe
is aggressively increasing its sales points in different countries.
Till the end of third quarter, the company possessed 110 sales
points in 19 countries compared with 57 sales points in 15
countries as of the end of the third quarter of fiscal 2011. We
believe these expansion strategies will certainly facilitate Bebe
in improvising its top line.
Bebe competes with other upper segment apparel retailers, such
). Currently, the company has a Zacks #4 Rank, which translates to
a short-term Sell rating. However, we are maintaining a long-term
Neutral recommendation on the stock.
Bebe stores engage in the design, development, and production of
women's apparel and accessories. The company's products include a
wide range of separates, tops, dresses, active wear, and
accessories in career, evening, casual, and active lifestyle
categories. The company markets its products under the bebe, BEBE
SPORT, bbsp, and 2b bebe brand names targeting 21 to 34-year-old
woman. As of June 30, 2012, it operated 247 retail stores including
200 bebe stores and 47 2b bebe stores.
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