NEW YORK (TheStreet) -- Bebe Stores (BEBE) shares are down -2.2% to $3.08 in pre-market trading on Monday after being downgraded to "neutral" from "buy" by analysts at B. Riley.
The pessimistic outlook stems from the women's fashion retailer's announcement on Friday that it expects same store sales growth to slow down to single percentage growth this quarter.
Additionally, the company plans to lay off 9% of its non-store employees and 1% of its store employees.
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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 disappointing return on equity, poor profit margins, weak operating cash flow and generally disappointing historical performance in the stock itself."