NEW YORK (TheStreet) -- Bebe Stores (BEBE) was rising 18.18% to $5.59 on Friday afternoon after the women's apparel retailer reported a smaller-than-expected loss in its second-quarter results and reported revenue that beat analysts' estimates.
The company noted a loss of seven cents a share on revenue of $130 million, which beat the analysts' expectations of a 14 cent loss per share on revenue of $121.3 million, according to FactSet.
Bebe also reported that same-store sales in establishments open at least a year fell 1.9% in the second quarter compared to a 2.8% drop in the first quarter. This is a critical measure in gauging a retailer's status because it does not include results from stores that recently opened or closed.
"We are encouraged by the sequential improvement we experienced in the second quarter, especially during Black Friday weekend and the month of December," said CEO Steve Birkhold in the company's statement. "December continued the sequential improvement with positive comparable store sales, as we saw a favorable response to the new merchandise and an increase in traffic, despite declining mall traffic and an aggressive promotional environment across the industry."
TheStreet Ratings team rates BEBE STORES INC as a "sell" with a ratings score of D+. TheStreet Ratings Team has this to say about their recommendation:
"We rate BEBE STORES INC (BEBE) a SELL. This is driven by multiple weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, weak operating cash flow and feeble growth in its earnings per share."