Bebe Stores, a global specialty retailer which designs, develops and produces a distinctive line of contemporary women’s apparel and accessories, has recently unveiled its financial results for the first quarter of the financial year 2017 ended October 1, 2016. The company posted a decline of 9.4 per cent in net sales to US $ 87.2 million as against US $ 96.3 million in the corresponding period previous year. During the quarter, the company shut 4 Bebe stores.
In the period under review, the company’s store sales plunged 3.2 per cent compared to 4.1 per cent decrease in the comparable period of the prior year. Brand’s net loss stood at US $ 7.8 million, compared to US $ 17.1 million loss for the same period of the prior year.
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Manny Mashouf, CEO, Bebe said, “In the first quarter, we had a very strong denim and leggings business which we will continue to invest in offset by weakness in non-apparel and evening dresses. We are finding it a challenge to offset the extremely high levels of markdowns and promotions realized in the prior year. We are committed to protecting the brand image, reducing markdowns and improving inventory turns and believe both our short-term and long-term success depend on our ability to execute our strategic plan.”
According to the fiscal 2017 guidance, the company does not plan to open any new store locations and to close up to 28 Bebe and outlet stores. Total capital expenditures for the year are anticipated to be approximately US $ 6 million for relocation, remodels and information technology systems.
