Bebe Stores turnaround boosts Q3
- Q3 net loss narrows to US$10.9m
- Gross margin improves to 30.4%
- Sales grow 4.1%
Bebe said it is "highly encouraged" by the progress made on its strategic initiatives
Bebe Stores turnaround plan appears to be taking hold as the US women's wear retailer revealed lower net losses in its third-quarter.
Net loss from continuing operation narrowed to US$10.9m in the three months ended 4 March. This compared to a loss of $22.8m a year earlier. The 2014 figure included $3.4m of costs related to additional lease termination costs based on landlord negotiations.
Gross margin also improved, to 30.4% compared to 27.5% in the prior year quarter, primarily a result of fewer markdowns and promotions during the period.
Net sales were up 4.1% to $92.7m, while comparable store sales grew 1.2% thanks to a higher Average Unit Retail in the bebe and outlet businesses, international expansion and the benefit from a shift in the date of Easter.
CEO Jim Wiggett, said: "Our third-quarter results reflect continued progress in our turnaround with the third consecutive quarter of comparable store sales growth despite significantly fewer promotions and a meaningful reduction in marketing spend.
"Looking ahead, we are highly encouraged by the progress we have made on our strategic initiatives and see growth opportunity through increased store productivity, further development of our e-commerce strategy, the transition of our outlet stores and the expansion of our international business."
US women's wear retailer Bebe Stores widened its net loss in the second quarter, but said sales were better than expected despite falling 5%....
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