Bebe Stores, Inc. (BEBE) saw its loss narrow to $7.78 million, or $0.10 a share for the quarter ended Oct. 01, 2016. In the previous year period, the company reported a loss of $17.14 million, or $0.22 a share.
Revenue during the quarter dropped 9.39 percent to $87.24 million from $96.28 million in the previous year period. Gross margin for the quarter expanded 258 basis points over the previous year period to 31.52 percent. Operating margin for the quarter stood at negative 9.43 percent as compared to a negative 17.68 percent for the previous year period.
Operating loss for the quarter was $8.22 million, compared with an operating loss of $17.03 million in the previous year period.
Manny Mashouf, chief executive officer said, "In the first quarter of Fiscal 2017 we continue to see sustainable changes in our business. We ended the quarter with our inventory and SG&A below the prior year and increased our gross margin 260 bps as a result of fewer markdowns and improved leverage on our occupancy. We had a very strong denim and leggings business which we will continue to invest in offset by weakness in non-apparel and evening dresses. We are working to take advantage of the casual trend taking place and believe we can continue to grow our bottoms business while working to improve our tops business as this is where we believe the fashion direction is taking us. While it is important to consistently get the fashion right we are also finding it a challenge to offset the extremely high levels of markdowns and promotions realized in the prior year. We are committed to protecting the brand image, reducing markdowns and improving inventory turns and believe both our short-term and long-term success depend on our ability to execute our strategic plan."
Working capital increases
Bebe Stores, Inc. has recorded an increase in the working capital over the last year. It stood at $67.28 million as at Oct. 01, 2016, up 16.84 percent or $9.69 million from $57.58 million on Oct. 03, 2015. Current ratio was at 3.34 as on Oct. 01, 2016, up from 2.46 on Oct. 03, 2015.
Days sales outstanding went down to 4 days for the quarter compared with 6 days for the same period last year.
Days inventory outstanding has decreased to 22 days for the quarter compared with 44 days for the previous year period.
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