bebe stores, inc. (BEBE) saw its loss narrow to $5.23 million, or $0.65 a share for the quarter ended Dec. 31, 2016. In the previous year period, the company reported a loss of $5.46 million, or $0.68 a share. Revenue during the quarter dropped 16.76 percent to $101.93 million from $122.45 million in the previous year period. Gross margin for the quarter expanded 33 basis points over the previous year period to 34.36 percent. Operating margin for the quarter stood at negative 6.25 percent as compared to a negative 4.44 percent for the previous year period.
Operating loss for the quarter was $6.37 million, compared with an operating loss of $5.44 million in the previous year period.
Manny Mashouf, chief executive officer said, "In the second quarter of Fiscal 2017 we reacted to sales and traffic trends below the incoming trends of the fiscal first quarter and the month of October. While we saw improvement in the week before Thanksgiving and the two weeks before Christmas, the results for those three weeks were not sufficient to offset the overall negative traffic trends in the first three weeks of November. We ended the quarter with our inventory and SG A below the prior year and increased our gross margin 40 bps as a result of fewer markdowns. As a result of the reductions in SG A, inventory and capital expenditures we generated cash for the six months ended December 31, 2016 for the first time since the fall of 2012."
Working capital increasesbebe stores, inc. has recorded an increase in the working capital over the last year. It stood at $66.60 million as at Dec. 31, 2016, up 16.29 percent or $9.33 million from $57.28 million on Jan. 02, 2016. Current ratio was at 2.80 as on Dec. 31, 2016, up from 2.43 on Jan. 02, 2016. Days sales outstanding went down to 3 days for the quarter compared with 5 days for the same period last year.
Days inventory outstanding has decreased to 16 days for the quarter compared with 36 days for the previous year period.
Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: [email protected]
