Tuesday, February 7, 2017

Bebe to shutter 25 stores

Struggling apparel retailer Bebe Stores Inc. is in the process of shrinking its store base: It closed one store in the second quarter and has plans to close as many 25 bebe and outlet stores in fiscal 2017. That will decrease total store square footage by some 16% in a year, according to a company press release.

The retailer on Thursday said Q2 same-store sales fell 10.5%, compared to a 2.5% decline a year ago, as store traffic improvements were inconsistent and inadequate over the holiday period. For the six months ended Jan. 2, same-store sales decreased 7.4%.

Q2 net sales were $101.9 million, a decrease of 16.8% from $122.4 million in the same period last year. Gross margin as a percentage of net sales edged up to 34.4% compared to 34.0% last year, thanks to a reduction in markdowns and promotions. . . . more

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