The 10-second takeaway
For the quarter ended April 6 (Q3), Bebe Stores met expectations on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped. Non-GAAP earnings per share. GAAP earnings per share.
Margins contracted across the board.
Bebe Stores logged revenue of $112.9 million. The four analysts polled by S&P Capital IQ expected a top line of $111.9 million on the same basis. GAAP reported sales were 6.7% lower than the prior-year quarter's $121.0 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at -$0.48. The four earnings estimates compiled by S&P Capital IQ predicted -$0.15 per share. Non-GAAP EPS were -$0.48 for Q3 compared to $0.00 per share for the prior-year quarter. GAAP EPS were -$0.62 for Q3 against $0.00 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 29.7%, 900 basis points worse than the prior-year quarter. Operating margin was -16.5%, much worse than the prior-year quarter. Net margin was -43.6%, much worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $127.7 million. On the bottom line, the average EPS estimate is -$0.04.
Next year's average estimate for revenue is $492.2 million. The average EPS estimate is -$0.25.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 423 members out of 532 rating the stock outperform, and 109 members rating it underperform. Among 141 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 124 give Bebe Stores a green thumbs-up, and 17 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Bebe Stores is outperform, with an average price target of $5.35.
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