Fall in traffic and AUR impacts net sales at Bebe

Comparable store sales for the quarter ended April 2, 2016, decreased 8.1 per cent.

Commenting on the results, Manny Mashouf, CEO of Bebe Stores said, “During the third quarter, we took significant steps to restructure our operations which included headcount reductions and the closure of non-productive stores.”

“Our third quarter results were impacted by the costs we incurred in connection with these efforts. As of the end of the quarter, we have eliminated 86 corporate positions with an anticipated annual savings of approximately $9 million,” he added.

Bebe currently operates 150 retail stores, the online store, bebe.com and 38 outlet stores. The company closed twelve retail stores and two outlet stores during the third quarter.

For the fourth quarter, the company plans to close up to 2 retail stores and 1 outlet store.

The company expects comparable store sales to decrease in mid-to-high single digit range in the fourth quarter. (MCJ)

ALCHEMPro News Desk - India