NEW YORK (TheStreet) -- Shares of Bebe Stores Inc. (BEBE) are slightly higher, 0.03% to $3.15, in after-hours trading on Friday after it announced it will exit its 2b business, which is its outlet division, as part of the company's ongoing restructuring plan.
The retailer said key initiatives which involve employee termination costs will ultimately generate approximately $9 million to $10 million in annualized pre-tax savings beginning in fiscal 2015.
Bebe lowered guidance for comparable store sales in the fourth quarter of fiscal 2014 to be in the negative low single digit range compared to its previous expectation of flat comparable store sales announced on May 8.
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Separately, 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 some concerns, 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 disappointing return on equity, poor profit margins, weak operating cash flow and generally disappointing historical performance in the stock itself."