Weak 4Q Comps for Bebe Stores - Analyst Blog
12 Luglio 2012 - 10:00AM
Zacks
Headquartered in Brisbane,
California, Bebe Stores Inc. (BEBE) recently
reported weak same store (comps) as well as retail sales results
for the fourth quarter of fiscal 2012 ending on June 30, 2012. The
company will announce its total sales figure with its
fourth-quarter earnings release, which will include wholesale as
well as other sales.
The company stated that total
retail sales of $119.1 million for the reported quarter, inched
down 2.5% from $122.4 million in the prior-year quarter ending on
July 2, 2011. Comps declined 2.5% year over year for the quarter
compared with an increase of 7.5% in the year-ago period, missing
its guidance of low-single-digit growth. The decline in retail
sales and comps were primarily due to lower traffic at the
company’s stores.
However, Bebe’s total retail sales
for fiscal 2012 increased 5.2% to $484.2 million from $460.1
million reported in the prior-year period. Moreover, during the
period, the company also registered a 5.3% growth in its comps
compared with a rise of 0.6% achieved in fiscal 2011. As of June
30, 2012, the company registered a 2% growth in average inventory
per square foot compared with 1% increase in fiscal 2011.
The company is aggressively
focusing on developing multi-channel retail format by enhancing its
e-commerce capabilities. Moreover, during third-quarter of fiscal
2012 Bebe purchased a distribution facility in Benicia, California,
which reflects its long-term strategy of managing store
distribution and online customer.
Further, in a drive to expand its
international business, Bebe is aggressively increasing its sales
points in different countries. Till the end of third quarter, the
company possessed 110 sales points in 19 countries compared with 57
sales points in 15 countries as of the end of the third quarter of
fiscal 2011. We believe these expansion strategies will certainly
facilitate Bebe in improvising its top line.
Bebe competes with other upper
segment apparel retailers, such as Nordstrom Inc.
(JWN) and Guess’ Inc. (GES). Currently, the
company has a Zacks #4 Rank, which translates to a short-term Sell
rating. However, we are maintaining a long-term Neutral
recommendation on the stock.
Bebe stores engage in the design,
development, and production of women's apparel and accessories. The
company’s products include a wide range of separates, tops,
dresses, active wear, and accessories in career, evening, casual,
and active lifestyle categories. The company markets its products
under the bebe, BEBE SPORT, bbsp, and 2b bebe brand names targeting
21 to 34-year-old woman. As of June 30, 2012, it operated 247
retail stores including 200 bebe stores and 47 2b bebe stores.
BEBE STORES INC (BEBE): Free Stock Analysis Report
GUESS INC (GES): Free Stock Analysis Report
NORDSTROM INC (JWN): Free Stock Analysis Report
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