Why Bebe Stores (BEBE) Stock Is Collapsing This Morning

NEW YORK (TheStreet) -- Shares of Bebe Stores Inc. (BEBE) are falling this morning after the women's apparel retailer warned of a more significant loss due to the cold weather in parts of the U.S. that hampered sales, Reuters reports.

Shares of the company are down -15.37% to $5.45 in pre-market trade.

Bebe expects a net loss of 29 cents to 32 cents per share for the third quarter that ended April 5.

Analysts on average were expecting a loss of 15 cents per share, according to Thomson Reuters I/B/E/S.

Sales fell 17.2% to about $93 million, below the $108.0 million analysts expected. Comparable store sales fell 5.7%, .

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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 a number of negative factors, 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."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

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