* Q3 EPS break even vs est $0.01
* Revenue up 10.5 pct to $109.5 mln
* Forecasts Q4 EPS $0.02-0.04 vs est $0.08
May 3 Women's apparel retailer Bebe Stores Inc
expects fourth-quarter earnings to fall on slower
comparable store sales growth and lower merchandise margins,
sending its shares down 10 percent.
Bebe, which caters to 21-to-34-year-olds with its
fashionable party and professional wear, forecast fourth-quarter
earnings of 2 cents to 4 cents a share.
The outlook came in below analysts' estimate of a profit of
8 cents a share, setting up the company for its first earnings
miss in five quarters.
The company expects comparable store sales growth in the
low-single digit range for the quarter. In the year ago period,
comparable sales had risen 7 percent.
Bebe, which had fallen out of favor with its clientele due
to fashion missteps, took steps to correct those mistakes last
year. It looped in celebrities like Kim Kardashian to promote
and design its lines and discontinued its underperforming PH8
The company also expects its fourth quarter profit to be hit
by higher compensation, advertising and other expenses.
For the third quarter, the company reported net loss of $0.2
million, or break even on a per share basis, compared with a
loss of $2.6 million or 3 cents a share last year.
Sales rose 10.5 percent to $121 million.
Analysts, on average expected the company to earn 1 cent a
share on a revenue of $118.68 million, according to Thomson
The Brisbane, California-based company reported a 7.2
percent rise in same-store sales.
Bebe shares, which have gained 27 percent in the last 12
months, closed at $8.04 on Thursday on the Nasdaq. They were
down 10 percent at $7.26.