Bebe Stores Posts Wider-than-Expected Q4 Loss

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bebe stores (BEBE) fell to an all-time low of $1.31 at Friday’s open after the producer of contemporary women’s apparel and accessories reported a wider-than-expected loss in the fiscal fourth-quarter and provided a gloomy outlook for the fiscal first quarter.



After the close on Thursday, bebe reported a net loss of $5.2 million, or $0.07 per diluted share, in the three months ended July 4 compared to net income of $34.5 million, or $0.30 per diluted share for the same quarter last year.

Non-GAAP adjusted Q4 loss per share from continuing operations was $0.05, wider than the $0.04 loss per share predicted by 2 analysts on average, according to Capital IQ data.

Q4 sales increased 0.7% to $104.3 million year-over-year, below the Wall Street consensus of $106.3 million.

Comparable store sales increased 1.1%, compared to a decrease of 1.9% in the comparable period of the prior year and Street estimates of a 4% increase in comp sales.

For Q1, the company expects comparable store sales to be in the negative mid-single digit range. The net loss per share is expected to be in the high teens. Analysts are looking for a loss of $0.5 per share and comp sales of a 4% gain.

The company said it will continue to evaluate whether dividend payments should be made on a quarterly basis. No dividend was declared for Q4.

For fiscal 2016, the company plans to open up to 6 bebe stores and outlet stores, and to close up to 12 bebe and outlet stores.

Shares are trading at $1.34, just above the low of its new 52-week range of $1.31 to $4.00.

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