bebe Surges on Sales Gain

The company guides up for the third quarter.
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bebe (BEBE) surged 10% late Thursday after posting a rise in second-quarter earnings.

The Brisbane, Calif., retail chain made $25 million, or 27 cents a share, up from the year-ago $24 million, or 26 cents a share. Sales rose to $168 million from $153 million a year earlier. The latest-quarter profit includes a 2-cent charge for the cost of stock-based compensation and a 1-cent charge on a customer loyalty program. Analysts surveyed by Thomson First Call were looking for 26 cents on revenue of $171 million.

The company expects to make 11 to 15 cents a share for the third quarter after another 2-cent charge for stock compensation costs. Analysts were looking for 13 cents.

bebe rose $1.55 late Thursday to $17.10.