Continued losses prompt Bebe to issue preliminary Q2 results

Bebe has taken significant steps to refocus on the Bebe brand, to preserve cash and to gain operating efficiencies across the organization. The retailer put these measures into effect by making changes in leadership, closing its 2b division and restructuring its corporate office, including retail management.



But the discontinuation of its 2b business, which was shut down July 5, took a bite out of the company’s second quarter, prompting the retailer to issue preliminary results.



The company reported a net loss of $24.2 million for the quarter, up from $20.8 million in the prior-year quarter. Net sales were $103.6 million, a decrease of 9% from $113.5 million. Same-store sales declined 1.9%.



“Looking ahead, we will continue to focus our efforts on re-building the Bebe brand, enhancing the product offering and merchandising the stores by lifestyle occasion, while maintaining a compelling fashion and value equation for our customers,” said CEO Jim Wiggett. “In addition to driving sales and improving margin, our focus will also continue to be on pragmatically preserving cash with the goal of delivering value to our shareholders.”



While Wiggett is staying optimistic, investor Ryan Drexler said he sees little in the way that is new and innovative in the brand's retailing and merchandising, according to a press release.



“The company I believe is playing catch-up at best,” Drexler said. “I believe that they need to be investing much more aggressively and gearing up much more quickly to keep pace with the competition, not to mention get out in front of it. What's new at Bebe today, is old hat at many of its peer group stores.”



In a prior separate letter addressed to the board, Drexler said that the company needs to explore possibilities for maximizing shareholder value, including a sale of the company, whether to a third party or through a going private transaction.



Drexler is president of Consac LLC, which holds approximately 2.7 million shares of Bebe's common stock.