=Bebe (BEBE) looks to shut physical locations, keep online presence

Bebe is looking to close stores and switch to an online only platform without filing Chapter 11. 

Shares of Bebe Stores (BEBE) were falling by 45.58% to $3.51 on heavy volume on Tuesday afternoon, as the women's apparel retailer is planning to shut its stores and turn itself around as an online brand, sources told Bloomberg.

Bebe is looking to close the stores without filing for bankruptcy, but Chapter 11 may be necessary if store landlords are not willing to make any kind of deal. Bebe operates about 170 boutique and outlet stores across the U.S.

bebe stores (BEBE) reported earnings Thur 12 Nov 2015 (after close)

** charts before earnings **

** charts after earnings **

bebe stores reports EPS in-line, misses on revs; guides Q2 EPS below two analyst estimate; Q1 comps -4.1% :

• Reports Q1 (Sep) loss of $0.16 per share, excluding non-recurring items, in-line with the two analyst estimate of ($0.16); revenues fell 5.8% year/year to $96.3 mln vs the $97.69 mln two analyst estimate. Q1 comps -4.1% vs +0.7% last year. Gross margin decreased to 28.9% vs 32.1% last year.
• Co issues downside guidance for Q2, sees EPS of ($0.12) - ($0.06) vs. $0.02 two analyst estimate.
  • Co expects comparable store sales to be in the negative high single digit range due to the current sales trends, recent merchandising process changes and the related product cancellations which began in October 2015. Gross margin is expected to be slightly lower than the prior year due to the anticipated promotional activities to clear the inventory for this period.
• For FY16, co plans to open four bebe stores and four outlet stores, and to close up to 30 bebe and outlet stores.

bebe stores (BEBE) reported earnings Thur 27 Aug 2015

** charts after earnings **