I guess it should come as no surprise to anyone paying the least bit of attention that bebe
In its fiscal third quarter, bebe reported a 3% decrease in earnings to $12.9 million, or $0.14 per share. The company did post a 16% jump in sales to $154.4 million, but comps fell 0.4% in the quarter.
While its third-quarter results were certainly nothing to brag about, its fourth-quarter projections are really what doomed bebe. The retailer projects fourth-quarter earnings of $0.17 to $0.21 per share, which would be below analysts' expectations of $0.25 per share and 12.5% to 29.2% lower than the $0.24 per share it earned in last year's fiscal fourth quarter. Additionally, bebe expects comps to fall by low to mid-single digits.
Companies lose key personnel all the time, but they figure out ways to move forward. However, for a company like bebe that's so reliant on its ability to define sexy, losing its trendsetter has a lasting impact, and the company is continuing to face that reality. In the fast-paced, constantly changing world of fashion, bebe faces the daunting task of playing catch-up.
Like a plethora of other fashion retailers -- including Abercrombie & Fitch
For more on bebe's attempts at bringing sexy back, check out:
bebe is a Stock Advisor recommendation. Get the latest copy of our Foolish picks free for 30 days.
Fool contributor Mike Cianciolo welcomes feedback and doesn't own any of the companies in this article. The Fool has a disclosure policy.