1. International sales are 6% of total net sales or $30 million from 60 international stores, which are mostly licensees. Bebe did mention possibly opening up to 60 new international stores with licensees in the next 12 months on the last conference call.
2. Item 6, Selected Financial Data, excludes the PH8 (operated since November 2009) and the 65+ Bebe Sport (converted to PH8 in November 2009) from the continuing operating results of the regular Bebe Stores. What is interesting to see is that as I previously suspected, the Bebe Sport chain made very little money. In 2007, a very good year, it only contributed $2.7 million to net income or 4% of the total for the year (excluding $13 million interest income from the calculation).
Clearly, the value of the company is the core Bebe brand and those stores. It is important to improve these operations and sales in order to drive the company stock higher from its lows of the last several years.
I have always liked this company, however, we stopped by their Hillsdale San Mateo California store yesterday(San Mateo is 22 miles south of San Francisco,and is an upper middle class zone). We found that they have reduced store size in half and that tee shirts are now $39 with limited choices. Neither of those facts was inspiring..