Bebe Stores to exit money-losing 2b apparel business

|By:, SA News Editor

Bebe Stores (BEBE) says it plans to exit its 2b business, which sells cheaper clothing and apparel for women compared to its namesake chain, to cut costs and focus on its core brand.

BEBE says the exit will lead to annual pretax savings of $9M-$10M beginning in FY 2015; it expects to record pretax charges of $5M-$6M to close the remaining 16 2b mall stores and write off or liquidate inventory.

BEBE also expects overall FQ4 comparable sales to fall by a low single digit percentage, and sees EPS losses in the mid-teens.