bebe stores, inc. (NASDAQ:BEBE) today announced unaudited financial results for the fourth quarter and fiscal year ended July 6, 2013.
For the fourth quarter of fiscal 2013:
Net sales were $119.2 million, a decrease of 9.4% from $131.5 million reported for the fourth quarter a year ago. As previously reported, comparable store sales for the quarter ended July 6, 2013, decreased 7.1% compared to a decrease of 2.5% in the comparable period of the prior year.
Gross margin as a percentage of net sales decreased to 30.6% compared to 40.2% in the fourth quarter of fiscal 2012. The decrease in gross margin was primarily due to the increase in markdowns coupled with unfavorable occupancy leverage. Gross profit included $1.9 million in reserves for inventory and fabric under the legacy strategy. Excluding the additional reserves, gross margin for the fourth quarter was 32.2%.SG&A expenses were $57.8 million, or 48.5% of net sales, compared to $47.5 million, or 36.1% of net sales, for the same period in the prior year. The increase in SG&A expenses was primarily attributable to current quarter store impairment and closure charges of $5.5 million, costs related to executive transitions of $2.6 million, settlement related expenses of $1.4 million, and rebranding agency costs of $0.7 million. The comparable period of the prior year included $1.7 million of incentive compensation and $0.3 million in store impairment and closure costs. Net loss for the fourth quarter of fiscal 2013 was $20.8 million, or $0.26 per share, on 79.0 million shares outstanding compared to net income of $3.0 million, or $0.04 per share, on 84.4 million diluted shares outstanding for the same period of the prior year. Excluding the aforementioned $10.1 million in transitional and/or incremental SG&A costs, net loss for the fourth quarter of fiscal 2013 was $10.7 million, or $0.14 per share, compared to the previously provided guidance of low to mid-teens. Note that such loss reflects the continuing impact of maintaining a valuation allowance against deferred tax assets and thus our effective tax rate approximates 0%.