Specialty retailers Bebe Stores Inc. and Pacific Sunwear of California Inc. posted earnings results after the markets closed on Thursday, with each one posting a loss.
This story first appeared in the August 30, 2013 issue of WWD. Subscribe Today.
At Bebe, which posted fourth-quarter results for the period ended July 6, the net loss was $20.8 million, or 26 cents a diluted share, against net income of $3 million, or 4 cents, a year ago. Net sales fell 9.4 percent to $119.2 million from $131.5 million, while comparable-store sales fell 7.1 percent in the quarter.
For the year, the net loss was $77.4 million, or 95 cents a diluted share, against net income of $11.7 million, or 14 cents, a year ago. Net sales declined 8.7 percent to $484.7 million from $530.8 million.
Steve Birkhold, chief executive officer, said of the fiscal year that it was a “transformational” one for the retailer as it made changes in leadership, strategic direction and brand positioning. He noted that the company will continue to clear through legacy merchandise in the first quarter of fiscal year 2014, but will also begin introducing product that reflects its new merchandising strategy.
For the first quarter of fiscal 2014, Bebe expects comps in the “negative low- to midsingle-digit range.”
Pacific Sunwear widened its second-quarter loss for the three months ended Aug. 3.
The net loss grew to $19.2 million, or 28 cents a diluted share, from $17.5 million, or 27 cents, a year ago. Net sales rose 9.1 percent to $215.2 million from $197.3 million, while comps were up 3 percent.
For the six months, the net loss was $43.4 million, or 64 cents, compared with a net loss of $33.2 million, or 49 cents, a year ago. Net sales rose 7.1 percent to $385.1 million from $359.6 million.
Gary H. Schoenfeld, president and ceo, said the company was “pleased with our strong performance” that was reflected in its “sixth consecutive quarter” of comps growth.
For the third quarter, the company forecasted its comps range to between negative 1 percent and plus 3 percent.