Bebe Stores Earnings: Increasing Costs Tighten Margins as Net Income Falls

bebe stores, inc. (NASDAQ:BEBE) reported its results for the fourth quarter. bebe stores designs, develops, and produces a distinctive line of contemporary women’s apparel and accessories.

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bebe stores, inc. Earnings Cheat Sheet

Results: Net income for bebe stores inc. fell to $3 million (4 cents per share) vs. $4.7 million (6 cents per share) a year earlier. This is a decline of 36.2% from the year-earlier quarter.

Revenue: Fell 0.6% to $131.5 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: bebe stores inc. fell in line with the mean analyst estimate of 4 cents per share. It beat the average revenue estimate of $118.7 million.

Key Stats:

A year-over-year revenue decrease last quarter snaps a streak of four consecutive quarters of revenue increases. The best quarter in that span was the second quarter, which saw revenue rise 11.6%.

The company fell in line with estimates last quarter after missing forecasts in the previous quarter with 0 cents versus a mean estimate of net income of one cent per share.

After sitting in the red the quarter before, the company reported a profit last quarter. The company booked a net loss of $6.6 million, or 8 cents per share, in the second quarter.

Looking Forward: Analysts appear increasingly optimistic about the company’s results for the next quarter. The average estimate for the first quarter of the next fiscal year has moved up from 4 cents a share to 5 cents over the last thirty days. The average estimate for the fiscal year is now 15 cents per share, down from 21 cents sixty days ago.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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