bebe storesBDST 50 Gross Margin % is 67.32% as of Jun. 2025, which is 5% above its 10-year median of 64.30. GuruFocus rates BDST with a GF Score™ of 50/100 and a GF Value™ of $2.23 (Possible Value Trap). The stock has 3 warning signs investors should review. Among 1,007 Business Services companies, bebe stores ranks better than 81.33% on this metric.
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
bebe stores had a gross margin of 67.32% for the quarter that ended in Jun. 2025 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
bebe stores Gross Margin % Related Terms
bebe stores Gross Margin % Historical Data
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The historical data trend for bebe stores's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
BDST vs AIHS, AITX, MWG: Gross Margin % Comparison
For the Rental & Leasing Services subindustry, bebe stores's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
bebe stores Gross Margin % vs Business Services Industry
For the Business Services industry and Industrials sector, bebe stores's Gross Margin % distribution charts can be found below:
* The bar in red indicates where bebe stores's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
bebe stores (BDST) has a Gross Margin % of 67.32% as of Jun. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on bebe stores and its competitors. This is near median its historical median of 64.30. Over the past decade, bebe stores' Gross Margin % has ranged from 62.32 to 67.91. According to the industry distribution chart, bebe stores ranks #188 out of 1007 companies in the Business Services industry, placing it in the top 18.7%.
Is bebe stores' Gross Margin % too high?
bebe stores' current Gross Margin % of 67.32% is near median its 10-year median of 64.30. Over the past 10 years, this metric has ranged from a low of 62.32 to a high of 67.91. The Business Services industry median Gross Margin % is 34.46. bebe stores' value of 67.32% is 95.4% above this industry median. Based on the distribution chart, bebe stores ranks #188 out of 1007 companies in the Business Services industry, which is in the top quartile — a strong position relative to peers. Overall, bebe stores has a GF Score™ of 50/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does bebe stores' Gross Margin % compare to AIHS and AITX?
According to the Business Services industry distribution chart, bebe stores ranks #188 out of 1007 companies for Gross Margin %. This places bebe stores in the top 19% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 34.46. bebe stores' value of 67.32% is 95.4% above this benchmark. Historically, bebe stores' own Gross Margin % has ranged from 62.32 to 67.91 over the past decade. While the company's 10-year median is 64.30 vs. the industry median of 34.46, bebe stores has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Business Services company?
The median Gross Margin % among Business Services companies is 34.46, based on 1,007 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. bebe stores's current Gross Margin % of 67.32% is 95.4% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on bebe stores and its competitors. For the Business Services industry, the median Gross Margin % is 34.46 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. bebe stores's current Gross Margin % is 67.32%, which is near median its own 10-year median of 64.30. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is bebe stores stock overvalued right now?
Based on GuruFocus' analysis, bebe stores (BDST) is currently considered Possible Value Trap. The stock's GF Value™ is $2.23, compared to a current price of $0.34 — trading 84.7% below its estimated fair value. The current Gross Margin % is 67.32%, which is near median its 10-year median of 64.30 and 95.4% above the Business Services industry median of 34.46. bebe stores' overall GF Score™ is 50/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For bebe stores (BDST), the current Gross Margin % is 67.32% as of Jun. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is bebe stores (BDST) Overvalued in 2026?
Based on GuruFocus' analysis, bebe stores stock appears to be undervalued.
The current stock price of $0.34 is trading 84.7% below its estimated GF Value™ of $2.23.
GuruFocus considers bebe stores to be Possible Value Trap.
Key valuation signals for BDST:
Gross Margin %: 67.32% (near median its 10-year median of 64.30)
GF Value™: $2.23 vs. price of $0.34 (84.7% below fair value)
Industry Position: 95.4% above the Business Services median (#188 of 1007)
No single metric tells the full story. See the BDST stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
bebe stores Inc operates through a network of Buddy's Home Furnishings franchise stores located across the Southeastern U.S. These stores provide furniture, appliances, electronics, and accessories to consumers through both retail sales and rent-to-own agreements. It prominently focuses on women's fashion apparel and accessories. The company generates the majority of its revenue through Rental income by renting its merchandise, such as furniture, appliances and consumer electronics to customers.
50GF Score
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