Bebe Stores Reports Fiscal 4th-quarter Loss

BRISBANE, Calif. (AP) — Apparel retailer Bebe Stores Inc. on Thursday reported a fiscal-fourth quarter loss, as sales slumped and the company marked down goods to lower inventory, but adjusted results beat analyst expectations.

Losses for the quarter ended July 4 totaled $323,000, or break-even per share, compared with a profit of $16 million, or 18 cents per share, in the year-ago period. Excluding 4 cents per share in employee acquisition and termination costs, asset write-downs and write-offs, net income was 4 cents per share.

Revenue fell 24 percent to $130.2 million from $171.5 million last year.

Analysts polled by Thomson Reuters, on average, predicted a profit of a penny per share on revenue of $129.4 million. Analyst estimates typically exclude one-time items.

Sales in stores open at least one year, a key retail metric known as same-store sales, fell 29.6 percent during the quarter.

However, the company cut costs, and selling, general and administrative expenses fell 4 percent to $55.9 million. Retailers have been cutting costs and lowering inventory in an effort to improve profitability amid languishing sales as consumers cut back.