Bebe stores announced unaudited financial results for the 2016 first quarter ended October 3, 2015. Net sales were $96.3 million, a decrease of 5.7% from $102.2 million reported for Q1 of the previous fiscal year.
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Comparable store sales for the quarter ended October 3, 2015, decreased 4.1% compared to an increase of 0.7% in the comparable period of the prior year.
Gross margin decreased to 28.9% compared to 32.1% in the first quarter of fiscal 2015. The decline in gross margin was primarily the effect of higher markdowns taken during the quarter as compared to the same period last year, coupled with occupancy deleverage.
SG&A expenses were $44.9 million, or 46.6% of net sales, compared to $42.1 million, or 41.2% of net sales, for the same period in the prior year.
The increase in SG&A expenses was primarily attributable to certain expenditures listed in the non-GAAP table, including store impairment charges and compensation expense related to severance activities. Excluding these expenses, SG&A expenses were 42.1% of net sales.
Loss from continuing operations for the first quarter of fiscal 2016 was $17.1 million, or $0.22 per share, on 79.7 million shares outstanding, compared to a loss of $8.9 million, or $0.11 per share, on 79.6 million shares outstanding for the same period of the prior year.
Excluding the incremental costs described above, loss from continuing operations was $12.8 million, or $0.16 per share, for the first quarter of fiscal 2016.
Net loss for the first quarter of fiscal 2016 was $17.1 million, or $0.22 per share. Including a loss from discontinued operations of $1.8 million, net loss for the first quarter of fiscal 2015 was $10.8 million, or $0.13 per share.
Income from discontinued operations during the first quarter of fiscal 2015 reflects the effects of the lease settlements related to the exit of the 2b business, which was shut down on July 5, 2014.
During the quarter ended October 3, 2015, the company closed one bebe store and opened one outlet store. ■