CORRECTED - CORRECTED-UPDATE 1-Bebe Q2 profit meets Street; sees weak Q3

Thu Feb 3, 2011 6:08pm EST

(Corrects text throughout to fix net loss figures and to clarify that earnings from continuing operations are comparable with analyst estimates)

* Q2 cont ops EPS $0.02 in line with Street

* Q2 revenue up 3 pct

Feb 3 (Reuters) - Bebe Stores Inc's (BEBE.O) quarterly profit from continued operations met estimates despite weakening demand in a snow-hit late-December as it kept costs under control, but the apparel retailer forecast a third-quarter loss that could miss market consensus by 4 cents.

Like most mall-based retailers, Bebe, which caters to 21-to-34-year-olds with its fashionable party and professional wear, felt the impact of harsh winter snow that kept shoppers at home.

Bebe had shifted away from its core customer base to focus on more mature buyers, but failed to make a profit in five of the previous seven quarters, prompting it to woo back its core shoppers.

The Brisbane, California-based retailer expects a third-quarter loss from continuing operations of 2-6 cents a share. Analysts, on average, were expecting a loss of 2 cents a share, according to Thomson Reuters I/B/E/S.

Net loss for the October-December quarter came in at $2.7 million, or 3 cents a share, compared with a profit of $2.4 million, or 3 cents a share, a year earlier.

Quarterly revenue rose 3 percent to 136.2 million.

The company earned $1.6 million, or 2 cents a share, from continuing operations in the period.

On that basis, analysts were expecting earnings of 2 cents a share on revenue of $136.5 million, according to Thomson Reuters I/B/E/S.

Shares of the company were down 2 cents at $5.69 in after market trade on Thursday on Nasdaq. (Reporting by Aditi Sharma and Nivedita Bhattacharjee in Bangalore; Editing by Jarshad Kakkrakandy)

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