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bebe stores inc. Reports Operating Results (10-Q)

November 10, 2010 | About:

bebe stores inc. (NASDAQ:BEBE) filed Quarterly Report for the period ended 2010-10-02.

Bebe Stores Inc. has a market cap of $555.7 million; its shares were traded at around $6.45 with and P/S ratio of 1.1. The dividend yield of Bebe Stores Inc. stocks is 0.8%.BEBE is in the portfolios of Kenneth Fisher of Fisher Asset Management, LLC, Chuck Royce of Royce& Associates, Columbia Wanger of Columbia Wanger Asset Management, Jim Simons of Renaissance Technologies LLC.

Highlight of Business Operations:

Selling, General and Administrative Expenses. Selling, general and administrative expenses from continuing operations decreased to $47.4 million during the three months ended October 2, 2010 from $47.5 million for the comparable period of the prior year, a decrease of $0.1 million, or 0.2 %. As a percentage of net sales, selling, general and administrative expenses increased to 40.2% during the three months ended October 2, 2010 from 39.3% in the comparable period of the prior year. The decrease in dollars over the prior year was primarily due to lower compensation costs versus the prior year period. The increase as a percentage of net sales was a result of lower revenues.

Provision for Income Taxes. The tax rate benefit in the first quarter of 2011 was 40.1% compared to the prior years 28.1% rate. While the effective tax rate is expected to fluctuate from quarter to quarter due to discrete items, the rate was affected by higher tax exempt income as a percentage of taxable income, a change in tax treatment related to the stock option exchange in the prior period and adjustments of temporary and permanent items in the prior period.

We hold a variety of interest bearing ARS consisting of federally insured student loan backed securities and insured municipal authority bonds. As of October 2, 2010, our ARS portfolio totaled approximately $87.1 million classified as available for sale securities. As of that date, our ARS portfolio included approximately 96% federally insured student loan backed securities and 4% municipal authority bonds and consisted of approximately 43% AAA rated investments, 5% AA rated investments, 36% A rated investments, 5% BBB rated investments and 11% CCC rated investments. As of July 3, 2010, our ARS portfolio consisted of 47% AAA rated investments, 5% AA rated investments, 33% A rated investments, 5% BBB rated investments and 10% CCC rated investments. These ARS investments are intended to provide liquidity via an auction process that resets the applicable interest rate at predetermined calendar intervals, allowing investors to either roll over their holdings or gain immediate liquidity by selling such interests at par. The uncertainties in the credit markets that began in February 2008 have affected our holdings in ARS investments and auctions for our investments in these securities have failed to settle on their respective settlement dates. Historically the fair value of ARS investments had approximated par value due to the frequent resets through the auction process. While we continue to earn

Read the The complete Report

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GuruFocus has detected 3 Warning Signs with bebe stores Inc $BEBE.
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