Exhibit 99.1 Contact: Walter Parks
Chief Financial Officer
bebe stores, inc.
(415) 715-3900 bebe stores, inc. Reports Second Quarter Earnings;
EPS Increases 26% to $0.53 Per Share BRISBANE, CALIF. – January 22, 2004 – bebe stores, inc. (Nasdaq:BEBE) today announced financial results for the second quarter of fiscal 2004 ended December 31, 2003. Net sales for the second quarter of fiscal 2004 were $112.0 million, up 11.1% from $100.8 million reported for the second quarter a year ago. As previously reported, same store sales for the quarter increased 7.1% compared to a decrease of 8.1% in the prior year. Gross margin as a percentage of net sales increased to 48.3% in the second quarter of fiscal 2004, compared to 48.0% in the second quarter of fiscal 2003. The increase in gross margin as a percentage of net sales from the prior year of 0.3% was primarily the result of favorable occupancy leverage. Operating expenses for the second quarter of fiscal 2004 were $32.3 million, or 28.9% of net sales, compared to $31.7 million, or 31.5% of net sales for the same period of the prior year. The decrease in operating expenses as a percent of sales for the second quarter of fiscal 2004 compared to the same period of the prior year was primarily in compensation, professional fees and advertising expenses. Operating income for the second quarter of fiscal 2004 increased 29.9% to $21.7 million, compared to $16.7 million for the same period a year ago. Net earnings for the second quarter increased 28.7% to $13.9 million, compared to $10.8 million for the same period a year ago. Diluted earnings per share for the second quarter were $0.53 versus $0.42 in the same period of fiscal 2003. Net sales for the six months ended December 31, 2003 were $195.6 million, up 12.0% from $174.7 million reported for the same period of the prior year. Net earnings for the six months ended December 31, 2003 were $19.9 million, an increase of 25.2% from $15.9 million for the same period of the prior year. Diluted earnings per share for the six months ended December 31, 2003 were $0.76 compared to $0.61 for the same period a year ago. The Company anticipates comparable store sales for the third quarter to be positive low to mid single digits and earnings per share to be in the range of $0.04 to $0.07 per share. bebe stores, inc. will host a conference call on Thursday, January 22, 2004 at 9:30 A.M. Pacific Time to discuss second quarter results. Interested parties are invited to listen to the conference by calling (888) 241-2232. A replay of the call will be available for approximately one week by calling (800) 642-1687 and using the passcode “4811664". A link to the audio replay will be available on our web site atwww.bebe.com following the conference call. bebe designs, develops and produces a distinctive line of contemporary women’s apparel and accessories, which it markets under the bebe and BEBE SPORT brand names. bebe currently operates 188 stores, of which 173 are bebe stores and 15 are BEBE SPORT stores. These stores are located in the United States and Canada. In addition, we have an online store atwww.bebe.com. The statements in this news release, other than the historical financial information, contain forward-looking statements that involve risks and uncertainties that could cause actual results to differ from anticipated results. Wherever used, the words “expect,” “plan,” “anticipate,” “believe” and similar expressions identify forward-looking statements. Any such forward-looking statements are subject to risks and uncertainties and the company’s future results of operations could differ materially from historical results or current expectations. Some of these risks include, without limitation, miscalculation of the demand for our products, effective management of our growth, decline in comparable store sales performance, ongoing competitive pressures in the apparel industry, changes in the level of consumer spending or preferences in apparel, and/or other factors that may be described in the company’s annual report on Form 10-K and/or other filings with the Securities and Exchange Commission. Future economic and industry trends that could potentially impact revenues and profitability are difficult to predict.
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