0001104659-09-030486.txt : 20090507 0001104659-09-030486.hdr.sgml : 20090507 20090507160146 ACCESSION NUMBER: 0001104659-09-030486 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20090507 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20090507 DATE AS OF CHANGE: 20090507 FILER: COMPANY DATA: COMPANY CONFORMED NAME: bebe stores, inc. CENTRAL INDEX KEY: 0001059272 STANDARD INDUSTRIAL CLASSIFICATION: WOMEN'S, MISSES', AND JUNIORS OUTERWEAR [2330] IRS NUMBER: 942450490 STATE OF INCORPORATION: CA FISCAL YEAR END: 0702 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-24395 FILM NUMBER: 09805478 BUSINESS ADDRESS: STREET 1: 400 VALLEY DR CITY: BRISBANE STATE: CA ZIP: 94005 BUSINESS PHONE: 4157153900 MAIL ADDRESS: STREET 1: 400 VALLEY DR CITY: BRISBANE STATE: CA ZIP: 94005 FORMER COMPANY: FORMER CONFORMED NAME: BEBE STORES INC DATE OF NAME CHANGE: 19980422 FORMER COMPANY: FORMER CONFORMED NAME: BABE INC DATE OF NAME CHANGE: 19980407 8-K 1 a09-12789_18k.htm 8-K

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 8-K

CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Date of report (date of earliest event reported):
May 7, 2009

bebe stores, inc.
(Exact name of registrant as specified in its charter)

California		0-24395		94-2450490
(State or other jurisdiction of incorporation)		(Commission File No.)		(I.R.S. Employer Identification No.)

400 Valley Drive

Brisbane, CA 94005

(Address of principal executive offices)

Registrant’s telephone number, including area code:
(415) 715-3900

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02 Results of Operations and Financial Condition

The information in this Form 8-K and the Exhibit attached hereto shall not be deemed “filed” for purposes of Section 18 of the Securities Act of 1934, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, except as shall be expressly set forth by specific reference in such filing. On May 7, 2009 bebe stores, inc. issued a press release announcing its third quarter fiscal 2009 earnings.

The press release relating to the third quarter fiscal 2009 earnings is attached hereto as Exhibit 99.1.

Item 9.01 Financial Statements and Exhibits

(d)	Exhibits

99.1.	Press Release dated May 7, 2009.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Date: May 7, 2009.

	bebe stores, inc.

	/s/ Walter Parks
	Walter Parks, Chief Operating Officer and Chief Financial Officer

EX-99.1 2 a09-12789_1ex99d1.htm EX-99.1

Exhibit 99.1

Contact:

Walter Parks

Chief Operating Officer

bebe stores, inc.

(415) 715-3900

bebe stores, inc.

Announces Third Quarter Results

BRISBANE, CALIF. — May 7, 2009 — bebe stores, inc. (NASDAQ:BEBE) today announced unaudited financial results for the third quarter ended April 4, 2009.

Net sales for the quarter ended April 4, 2009 were $127.7 million versus $151.7 million reported for the quarter ended April 5, 2008. Sales decreased 15.8% compared to the corresponding quarter in the prior year. Same store sales for the quarter ended April 4, 2009 decreased 23.5% compared to a decrease of 7.6% for the prior year quarter.

Gross margin as a percentage of net sales decreased to 37.8% in the third quarter of fiscal 2009, compared to 43.8% in the third quarter of fiscal 2008. The decrease in gross margin as a percentage of net sales from the prior year of 6.0% was primarily due to unfavorable occupancy leverage and to a lesser extent higher markdowns.

SG&A expenses for the third quarter of fiscal 2009 were $56.8 million, or 44.5% of net sales, compared to $59.0 million, or 38.9% of net sales for the same period of the prior year. The decrease in dollars in SG&A expense is primarily due to lower total compensation expense offset by an increase in depreciation expense and approximately $2.5 million in impairment charges and fixed asset write-offs related to underperforming stores and store closures.

The effective tax rate for the third quarter of fiscal 2009 increased to 35.3% from 33.6% in the third quarter of fiscal 2008 primarily due to deleveraging of permanent items, including stock based compensation expense and lower tax exempt interest income as a percent of taxable income.

Net loss for the third quarter is $5.0 million compared to net income of $8.3 million for the same period in the prior year. Diluted loss per share for the third quarter of fiscal 2009 was $0.06 which includes $.02 per share for the impairment charges and fixed asset write-offs related to underperforming stores and store closures on 87.4 million diluted weighted average shares outstanding compared to net income of $0.09 per share on 90 million diluted weighted average shares outstanding for the third quarter of fiscal 2008. Year-to-date we have purchased 2.4 million shares under our Board of Director approved stock purchase program.

Net sales for the year-to-date period ended April 4, 2009 were $472.8 million, a decrease of 8.4% from $516.1 million for the year-to-date period ended April 5, 2008. Same store sales for the year-to-date period ended April 4, 2009 decreased 18.2% compared to a decrease of 8.3% in the prior year.

Net income for the year-to-date period ended April 4, 2009 is $13.0 million compared to $47.1 million in the prior year. Diluted earnings per share for the year-to-date period ended April 4, 2009 is $0.15 compared to $0.51 per share in the prior year.

During the quarter ended April 4, 2009, the Company opened one 2b bebe store, closed three bebe stores and two SPORT stores, where leases had expired and not renewed, and converted one bebe Outlet store to a 2b bebe store resulting in a reduction of total square footage of 1%.

For the year-to-date period the Company’s capital expenditures were approximately $23.7 million and depreciation expense was approximately $19.7 million.

For the fourth quarter of fiscal 2009, the Company anticipates comparable store sales will be in the range of negative mid teens to low twenties and depending on actual sales and markdowns earnings per share will be in the range of $0.02 to $0.10 per share based on 88 million diluted weighted average shares outstanding versus $0.18 per share based on 90 million diluted weighted average shares outstanding in the fourth quarter of fiscal 2008. The Company is currently anticipating an effective tax rate of 35.0% for the fourth quarter of fiscal 2009.

For the fourth quarter of fiscal 2009, the Company is currently planning finished goods inventory to be down on a per square foot basis compared to the fourth quarter of fiscal 2008 in the high teens.

bebe stores, inc. will host a conference call today at 1:30 P.M. Pacific Time to discuss third quarter results. Interested parties are invited to listen to the conference by calling (888) 889-5848. A replay of the call will be available for approximately one week by calling (866) 393-0872. A link to the audio replay will be available on our web site at www.bebe.com following the conference call.

bebe stores, inc. designs, develops and produces a distinctive line of contemporary women’s apparel and accessories, which it markets under the bebe, BEBE SPORT, bbsp and 2b bebe brand names. bebe currently operates 308 stores, of which 212 are bebe stores, 62 are BEBE SPORT stores, 18 are bebe Outlet stores, 15 are 2b bebe stores and 1 is a bebe accessories store. These stores are located in the United States, U.S. Virgin Islands, Puerto Rico and Canada. In addition, there is an online store at www.bebe.com.

The statements in this news release and on our recorded message, other than the historical financial information, contain forward-looking statements that involve risks and uncertainties that could cause actual results to differ from anticipated results. Wherever used, the words “expect,” “plan,” “anticipate,” “believe” and similar expressions identify forward-looking statements. Any such forward-looking statements are subject to risks and uncertainties and the company’s future results of operations could differ materially from historical results or current expectations. Some of these risks include, without limitation, miscalculation of the demand for our products, effective management of our growth, decline in comparable store sales performance, ongoing competitive pressures in the apparel industry, changes in the level of consumer spending or preferences in apparel, loss of key personnel, difficulties in manufacturing, disruption of supply, adverse economic conditions, and/or other factors that may be described in the company’s annual report on Form 10-K and/or other filings with the Securities and Exchange Commission. Future economic and industry trends that could potentially impact revenues and profitability are difficult to predict.

bebe stores, inc.

SELECTED BALANCE SHEET DATA

(UNAUDITED)

(Dollars in thousands)

	April 4,		April 5,
	2009		2008
Assets

Cash and equivalents	$	123,059	$	83,458
Inventories, net	37,433		44,624
Total current assets	205,922		180,824
Property and equipment, net	132,029		126,243
Long-term marketable securities	192,961		250,503
Investment repurchase right	12,298		—
Total assets	$	573,126	$	585,998

Liabilities and Shareholders’ Equity

Total current liabilities	$	58,601	$	62,915
Total liabilities	108,762		111,297
Total shareholders’ equity	464,364		474,701
Total liabilities and shareholders’ equity	$	573,126	$	585,998

bebe stores, inc.

STATEMENTS OF OPERATIONS

(UNAUDITED)

(Amounts in thousands except per share data and store statistics)

	Apr. 4,					Apr. 5,				Apr. 4,				Apr. 5,
	2009			%		2008		%		2009		%		2008		%

Net sales	$	127,657		100.0	%	$	151,729	100.0	%	$	472,819	100.0	%	$	516,140	100.0
Cost of sales, including production and occupancy	79,351			62.2		85,385		56.2		281,084		59.4		279,282		54.1

Gross margin	48,306			37.8		66,344		43.8		191,735		40.6		236,858		45.9
Selling, general and administrative expenses	56,761			44.5		59,002		38.9		177,380		37.6		177,937		34.5

Operating income	(8,455		)	(6.7	)	7,342		4.9		14,355		3.0		58,921		11.4
Interest and other income, net	663			0.5		5,225		3.4		5,553		1.2		12,979		2.5

Income before income taxes	(7,792		)	(6.2	)	12,567		8.3		19,908		4.2		71,900		13.9
Income tax provision	(2,747		)	(2.2	)	4,219		2.8		6,951		1.5		24,805		4.8

Net earnings	$	(5,045	)	(4.0	)%	$	8,348	5.5	%	$	12,957	2.7	%	$	47,095	9.1

Basic earnings per share	$	(0.06	)			$	0.09			$	0.15			$	0.52
Diluted earnings per share	$	(0.06	)			$	0.09			$	0.15			$	0.51

Basic weighted average shares outstanding	87,387					88,833				88,366				90,077
Diluted weighted average shares outstanding	87,387					90,115				88,561				91,473

Number of stores open at beginning of period	312					290				303				273
Number of stores opened during period	1					4				12				21
Number of stores closed during period	5					4				7				4
Number of stores open at end of period	308					290				308				290

Number of stores expanded/relocated during period(*)	0					1				2				3

Total square footage at end of period (000’s)	1,157					1,060				1,157				1,060

* Expanded/Relocated stores are excluded from comparable store sales for the first year following expansion/relocation.

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