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Bebe Stores Q2 net sales decreased 5% to $122.4 million

Staff writer ▼ | February 17, 2016
Bebe Stores announced unaudited financial results for the second quarter ended January 2, 2016. Net sales decreased 5% to $122.4 million.
Bebe Stores
Bebe Stores   Comparable store sales decreased 2.5%
This compares to $128.9 million in the second quarter of fiscal 2015. The net sales decrease was primarily driven by a comparable store sales decrease and store closures.

Comparable store sales for the quarter ended January 2, 2016, decreased 2.5% compared to an increase of 8.0% in the same period of the prior year. Traffic and conversion declined while average unit retail was flat.

Gross margin as a percentage of net sales declined to 34.0% compared to 37.2% in the second quarter of fiscal 2015. The decrease in margin primarily reflects an increase in promotional activity and decreased store leverage on lower sales.

SG&A expenses were $47.1 million, or 38.5% of net sales, compared to $47.8 million or 37.1% of net sales for the same period in the prior year.

The decrease in SG&A compared to the prior year quarter was due to reductions in compensation and advertising expense partially offset by an increase in depreciation related to planned store closures as well as increased store impairment charges of $2.0 million.

Net loss from continuing operations was $5.5 million and loss per share was $0.07 for the second quarter of fiscal 2016 on 79.9 million shares outstanding, compared to breakeven, or $0.00 per share, based on 79.6 million shares outstanding for the same period of the prior year.

Excluding the impairment cost described above, loss from continuing operations was $3.5 million, or $0.05 per share, for the second quarter of fiscal 2016.

Including a loss from discontinued operations of $0.4 million, net loss for the second quarter of fiscal 2015 was $0.4 million, representing breakeven earnings per share.


 

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