NEW YORK —Bebe Stores Inc.’s ongoing inability to get stock into its stores cut into its fourth-quarter profits.
The Brisbane, Calif.-based firm reported Wednesday that for the three months ended June 30, net income tumbled 18 percent to $3.3 million, or 13 cents a diluted share, a penny ahead of Wall Street’s forecast and above its already-raised expectations. Last year, Bebe earned $4 million, or 15 cents. Sales for the quarter rose 9.1 percent to $80.1 million from $73.5 million and were up 2.9 percent on a comparable-store basis.
Inventories at the end of the quarter rose 8 percent to $25.4 million, 4 percent below plan, but 3 percent higher than last year.
“We have made tremendous improvements in production,” Manny?Mashouf, chairman and chief executive, said on a conference call. “We are experiencing a smaller percentage of late deliveries and those are getting smaller and smaller.” He said he was confident that within the next 60 days, Bebe will have worked through many of the delivery difficulties.
Bebe has reported positive comps since April and is expected to report a mid-single-digit comp increase in July.
The company also said it is anticipating earnings for the first quarter in the range of 18 to 21 cents a share, compared with consensus estimates of 21 cents, and comps to be in the low-single digits. Gross margins are expected to be lower for the next three quarters, but higher in the fourth quarter.
As the retailer heads into fall with momentum behind it, Mashouf said the stores will have a better balance between day and nightwear and high fashion.
In 2003, earnings fell 27.2 percent to $19.3 million, or 74 cents a diluted share, versus income of $26.5 million, or $1.02, in 2002. Sales climbed 2.3 percent to $323.5 million versus $316.4 million.
“My personal philosophy to beauty is paying attention to oneself. I love to be outdoors, lots of fresh air, trying to take care of yourself as best you can. I always notice that comes through,” says Felicity Jones, the global face of @shiseido-owned @cledepeaubeauteus, which launches today. Head to WWD.com to read more about the actress’ love for beauty and how she prepared for her new role in “The Basis of Sex,” playing the young Ruth Bader Ginsburg. #wwdbeauty (📷: @dandoperalski)
For men’s fall 2018, @giuseppezanotti drew on elements from streetwear, sport, biker, combat and rock ‘n’ roll. Pictured here are a pair of shoes from the collection, featuring zippers, rhinestones, and silver hardware. Head to WWD.com to see a roundup of the accessories from Milan’s men’s fall 2018 shows. #wwdfashion (📷: Andrea Delb)
To celebrate the 25th anniversary of @ralphlauren’s snowboarding collection, the brand is mining its archives. The iconic brand is reintroducing vintage styles and dropping new designs for a color capsule that will be available in Ralph Lauren stores and @openingceremony on January 25. The capsule will consist of 10 pieces, including the Snow Beach Pullover, pictured here, which is a collector’s item that rapper Raekwon wore in Wu-Tang Clan’s “Can It Be All So Simple” video. #wwdfashion (📷: Tom Gould)
For @rochasofficial’s pre-fall 2018 collection, creative director Alessandro Dell’Acqua channeled the sophisticated and intriguing Catherine Denevue in the film “Belle de Jour.” Polished collarless coats, midi skirts, suits and ’60s graphic motifs were all featured in the collection, adding a sense of discreet luxury. See the rest of the photos on WWD.com #wwdfashion
“We tried to produce clothing of that couture quality, but the most daunting part was that we only had a matter of days [to do it],” said costume designer Lou Eyrich, who recreated Gianni Versace’s iconic looks for @americancrimestoryfx. Eyrich searched online retailers and vintage shops for original pieces from the design house and for @penelopecruzoficial, who plays Donatella Versace. Head to WWD.com to read how she created the Versace world. #wwdfashion
Only three months after her stellar debut catwalk season, @kaiagerber has inked her first big design collaboration –– with @karllagerfeld. The collection blends Lagerfeld’s Parisian chic aesthetic and the model’s signature West Coast casual style via RTW, accessories, footwear and more. The #KarlLagerfeldxKaia collection will launch in September with a series of events. Get all the details on WWD.com. #wwdnews #wwdfashion
Harrods plans to remove the famous statue of Princess Diana and Dodi Al Fayed from the bottom of the Egyptian escalators and hand it back to Mohamed Al-Fayed. “We are very proud to have played our role in celebrating the lives of Diana, Princess of Wales and Dodi Al Fayed at Harrods and to have welcomed people from around the world to visit the memorial for the past 20 years,” said Michael Ward, Harrods managing director. “With the announcement of the new official memorial statue to Diana, Princess of Wales at Kensington Palace, we feel that the time is right to return this memorial to Mr. Al Fayed and for the public to be invited to pay their respects at the palace.” More on the news, with reporting by @loreleimarfil, at WWD.com. #wwdnews