Exhibit 99.1 Contact: Walter Parks
Chief Financial Officer
bebe stores, inc.
(415) 715-3900 bebe stores, inc.
Announces Record Fourth Quarter and Fiscal Year 2004 EarningsBRISBANE, CALIF. – August 12, 2004 – bebe stores, inc. (Nasdaq:BEBE) today announced financial results for the fourth quarter and fiscal year ended June 30, 2004. Net sales for the fourth quarter of fiscal 2004 were $93.1 million, up 16.2% from $80.1 million reported for the fourth quarter a year ago. As previously reported, same store sales for the quarter increased 9.0% compared to an increase of 2.9% in the prior year. Gross margin as a percentage of net sales increased to 47.0% in the fourth quarter of fiscal 2004, compared to 41.7% in the fourth quarter of fiscal 2003. The increase in gross margin as a percentage of net sales from the prior year of 5.3% was primarily the result of improved merchandise margins and favorable occupancy leverage as a result of higher comparable store sales. SG&A expenses for the fourth quarter of fiscal 2004 were $30.2 million, or 32.4% of net sales, compared to $28.8 million, or 36.0% of net sales for the same period of the prior year. The decrease in SG&A expenses as a percent of sales is primarily due to increased leverage on fixed expenses as a result of higher comparable store sales offset primarily by legal expenses. Operating income for the fourth quarter of fiscal 2004 increased to $13.5 million or 14.6% of net sales, compared to $4.6 million or 5.7% for the same period of the prior year. Net earnings for the fourth quarter increased to $8.4 million, compared to $3.3 million for the same period of the prior year. Diluted earnings per share for the fourth quarter were $0.21 versus $0.08 in the same period of fiscal 2003. Net sales for the fiscal year ended June 30, 2004 were $372.3 million, up 15.1% from $323.5 million reported for the same period of the prior year. As previously reported, same store sales for the fiscal year ended June 30, 2004 increased 9.5% compared to a decrease of 6.8% in the same period of the prior year. Net earnings for the fiscal year ended June 30, 2004 were $33.8 million, an increase of 75.1% from $19.3 million for the same period of the prior year. Diluted earnings per share for the fiscal year ended June 30, 2004 were $0.85 compared to $0.50 for the same period a year ago. The Company anticipates comparable store sales for the first quarter of fiscal 2005 to be mid to high single digits and earnings per share in the range of $0.16 to $0.19 per share, versus $0.15 in the first quarter of fiscal 2004. The Company currently anticipates opening twenty new stores in fiscal 2005, which includes eleven bebe stores, eight BEBE SPORT stores, and one outlet store. For fiscal year 2005, our planned capital expenditures are approximately $20 million. bebe stores, inc. will host a conference call on Thursday, August 12, 2004 at 9:30 A.M. Pacific Time to discuss fourth 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 updated passcode “8642361". 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 201 stores, of which 177 are bebe stores and 24 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. | 