UPDATE 1-Bebe Q1 sales lag estimates, shares fall

Thu Oct 7, 2010 10:31am EDT

* Q1 sales $111.9 mln vs est $118.2 mln

* Q1 same-store sales fall 4.7 pct

* Shares fall 14 pct

Oct 7 (Reuters) - Women's apparel retailer Bebe Stores Inc (BEBE.O) posted lower first-quarter sales that trailed market estimates by a wide margin, hurt partly by lower mall traffic, sending its shares down 14 percent.

The retailer, which caters mainly to 18- to 25-year-olds, said sales fell 7 percent to $111.9 million for the quarter ended Oct 2.

Analysts on average were expecting sales of $118.2 million, according to Thomson Reuters I/B/E/S.

Same-store sales at the company, which has been closing underperforming stores and plans to discontinue its troubled PH8 line to improve results, declined 4.7 percent.

Shares of the Brisbane, California-based company were down 69 cents at $6.30 Thursday morning on Nasdaq. They have lost nearly a third of their value since touching a year-high in late April. (Reporting by Mihir Dalal in Bangalore; Editing by Anne Pallivathuckal)

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