By
Reuters
Published
Feb 4, 2010
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Bebe second quarter profit tops estimates

By
Reuters
Published
Feb 4, 2010

Feb 4 (Reuters) - Women's apparel retailer Bebe Stores Inc (BEBE.O) posted a second-quarter profit that topped market estimates on lower markdowns and lower costs.


Eau de Parfum from Bebe - Photo: www.bebe.com

For the current third quarter, the Brisbane, California-based company expects breakeven to a loss of 5 cents a share.

Analysts on average were expecting a loss of 3 cents a share, according to Thomson Reuters I/B/E/S.

Second-quarter net income at the company, which targets women in the age group of 18 to 25, came in at $2.4 million, or 3 cents per share, compared with $6.8 million, or 8 cents a share, a year earlier.

Analysts were looking for earnings of 1 cent a share.

The company's sales dropped 22 percent to $141.5 million as it battled dwindling traffic at its stores and sluggish sales at its revamped sports concept, PH8.

Last year, the company revamped its Bebe Sport stores into PH8 as a part of its efforts to stem sales declines, but has not seen much success.

Last month, it said second-quarter same-store sales were down 22.5 percent.

Selling, general and administrative expenses fell 17 percent during the quarter.

Bebe shares closed at $6.28 Thursday 4 February on Nasdaq. (Reporting by Nivedita Bhattacharjee in Bangalore; Editing by Anne Pallivathuckal)

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