BEBE STORES, INC.

Retailer bebe stores offers apparel in two main sizes: slim and none. bebe (pronounced "beebee") designs and sells contemporary women's career, evening, and casual clothing and accessories under the bebe banner through more than 200 stores in the US, Canada, and Puerto Rico; abroad through licensees; and online. The company targets hip, "body-conscious" (some say skinny) 21- to 34-year-olds. bebe also licenses its name for items such as eyewear and swimwear. The majority of bebe's products are designed in-house and produced by contract manufacturers. Chairman and former CEO Manny Mashouf, who founded bebe in 1976, controls the company.

Geographic Reach

California-based bebe stores operates stores in 34 US states, Puerto Rico, the US Virgin Islands, and Canada. Through licensees it has a retail store presence in 25 countries, including the United Arab Emirates, Israel, Russia, Mexico, Turkey, and South Korea.

Operations

In addition to its physical and online retail presence, bebe stores' wholesale business contributes about 8% of total net sales.

Financial Performance

Bebe stores reported sales of $425.1 million in fiscal 2014 (ended June), a decline of 12% versus the prior year. The company blamed the decline on a 3% drop in same-store sales and a decrease in its wholesale business (down 6%). Online sales increased 15% year over year. Fiscal 2014 marked the second consecutive year of declining sales and profits for bebe, which reported a loss of $73.4 million. Indeed, bebe has been profitable in just one of the past five years. Cash flow from operations continued its steep two year plunge into negative territory in fiscal 2014.

Strategy

In 2014, the retailer pulled the plug on its 2b bebe outlet stores division -- shuttering 18 2b mall-based stores -- to better focus its efforts on the core bebe brand's retail and outlet stores, e-commerce and international licensing business. A highly promotional environment in the outlet store business led to the decision to exit the business.

Indeed, bebe's store count has declined from 297 stores at the end of fiscal 2010 to 207 locations in fiscal 2014 (ended June). The retailer shuttered all 49 of its PH8 stores in fiscal 2011, to focus on improving financial performance at its core bebe chain and further develop its 2b bebe business. (The PH8 shops, which sold sexy, casual weekend apparel, work-out clothes, and related accessories, did not meet sales expectations.) The shutdown came not long after the company converted all of its BEBE SPORT stores (launched in 2003) in North America to the PH8 banner. (The company retained the BEBE SPORT trademark however and continues to sell some BEBE SPORT merchandise at its other retail stores.)

While its US store count has declined, bebe continues to aggressively grow its international retail presence, increasing the number of stores operated by licensees to about 95 locations in 25 countries including Egypt, Indonesia, Israel, Malaysia, Mexico, Thailand, Turkey, and the United Arab Emirates. Bebe supplies its licensees with apparel, shoes, and accessories.

E-commerce is a bright spot and another focus area for bebe. The company credited the 15% gain in online sales in fiscal 2014 to its efforts to create a more seamless multichannel experience for visitors to its website, and an increase in its online assortment and improved ordering capabilities in stores.

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BEBE STORES, INC.


400 Valley Dr
Brisbane, CA 94005-1210
Phone: 1 (415) 715-3900
Fax: 1 (415) 7153939
www.bebe.com

STATS


  • Employer Type: Public
  • Stock Symbol: BEBE,
  • Stock Exchange: , NASDAQ
  • Chief Executive Officer; Director: Steve Birkhold
  • Chairman: Manny Mashouf
  • CFO: Liyuan Woo

Major Office Locations

  • Brisbane, CA

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