The Company and the bebe.com third party service provider have entered into a termination agreement. We anticipate migrating to a company managed platform in the first quarter of fiscal 2013. In addition, as part of the Company’s long-term strategy to manage store distribution as well as direct to consumer fulfillment for both bebe.com and 2bstores.com, the Company has purchased its existing distribution facility in Benicia, California for $18 million. The company believes both of these decisions will support its long-term growth objectives across its multi-channel platform.
For the year-to-date period the Company’s capital expenditures were approximately $17.5 million and depreciation expense from continuing operations was approximately $15.1 million. Depreciation for the year will be approximately $21 million. Total capital expenditures for the year, excluding the purchase of the distribution center, are anticipated to be $27 million which will include capital expenditures for new stores, remodels, store expansions, information technology systems and office improvements.
The Company is currently anticipating an effective tax rate of approximately 41.0% for fiscal 2012.
For the fourth quarter of fiscal 2012, the Company is currently planning finished goods inventory to increase in the mid-single digit range on a per square foot basis compared to the increase of 1% in the fourth quarter of fiscal 2011.bebe stores, inc. will host a conference call today at 1:30 P.M. Pacific Time to discuss third quarter results. Interested parties are invited to listen to the conference by calling 1-866-893-0531. A replay of the call will be available for approximately one week by calling 1-855-859-2056 and entering in conference ID number 41800254. A link to the audio replay will be available on our web site at www.bebe.com following the conference call. bebe stores, inc. designs, develops and produces a distinctive line of contemporary women’s apparel and accessories, which it markets under the bebe, BEBE SPORT, bbsp and 2b bebe brand names. bebe currently operates 249 stores, of which 205 are bebe stores, including the on-line store bebe.com, and 44 are 2b bebe stores, including the on-line store 2bstores.com. These stores are located in the United States, U.S. Virgin Islands, Puerto Rico, Canada and Japan. bebe also distributes and sells bebe branded product through both its licensees in approximately 19 countries.