Revenue slips at Bebe Stores, which flirts with sale
By FashionUnited
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Steve Birkhold, Chief Executive Officer, commented: "We are encouraged by the sequential improvement we experienced in the second quarter, especially during Black Friday weekend and the month of December.
"We believe that the strong messaging in our marketing campaigns connected with our customer and contributed to the improvement in traffic. We also successfully cleared through the vast majority of legacy merchandise, ending the quarter with inventory per square foot down nearly 7 percent. That said, the retail environment remains challenging, and we will continue to operate with disciplined inventory management and cost controls," CEO at Bebe Stores pinpointed.
Results ahead of expectations for Bebe Stores in Q2
Results were ahead of the Zacks Consensus Estimate as well as its own guidance, cheering investors and boosting the stock by 11.2 percent in the after-hour trading session."The company reported a loss of 7 cents per share for the quarter, much narrower than the Zacks Consensus Estimate of a loss of 15 cents. However, the quarterly loss was higher than the comparable prior-year quarter loss of 6 cents per share," highlighted analysts at Zacks Equity Analysis.
Janney Montgomery Scott restated their 'neutral' rating on shares of Bebe Stores (NASDAQ:BEBE) in a research note issued to investors on February, 4. The firm currently has a 5 dollars price target on the stock, down from their previous price target of 6 dollars.
According to sources close to the matter that preferred to remain anonymous, Bebe Stores (BEBE) is exploring selling itself and is contacting private-equity firms about a deal, reported Reuters over the weekend.
Reportedly, the fashion retailer would have hired Guggenheim Securities to help with the process.
"Going forward, we expect the company's new merchandising strategy and its practice of lowering inventory to stimulate growth," advanced Zacks.
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