Brisbane, CA—Bebe Stores Inc. said Thursday that its third quarter adjusted loss was 14 cents a share beating analysts’ average estimate for a 15 cents a share loss.
For the quarter ended April 6, the teen specialty retailer reported net sales fell 6.7% to $112.9 million. Comparable store sales declined 8.6% compared to a 7.2% increase in the year ago period.
Gross margin as a percentage of net sales decreased to 29.7% compared to 38.7% in the third quarter 2012. The decrease in gross margin was primarily due to a significant increase in markdowns coupled with unfavorable occupancy leverage.
Its expenses in the quarter were $52.2 million or 46.2% of net sales compared to $47.2 million, or 39% of same in third quarter 2023. The expenses rose due to $4.8 million which “include store impairment charges, costs related to hiring a new CEO, rebranding agency costs as well as other transition related recruiting and severance costs.”
For the fourth quarter, bebe foresees a loss in the low to mid-teens per share with comparable store revenue expected to be a high single-digit percentage decline.
According to Steve Birkhold, who became chief executive in January, all major leadership positions across the company have been filled. The latest addition named this week was Keith Keegan as senior vice president of marketing. In his new role, Keegan will lead all aspects of marketing and branding across all channels of the business.