bebe stores (BEBE) 10-Q 12 Nov 15 2016 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Oct. 03, 2015	Oct. 30, 2015
Document And Entity Information [Abstract]
Entity Registrant Name	bebe stores, inc.
Trading Symbol	BEBE
Entity Central Index Key	1,059,272
Current Fiscal Year End Date	--07-02
Entity Filer Category	Accelerated Filer
Document Type	10-Q
Document Period End Date	Oct. 3, 2015
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q1
Amendment Flag	false
Entity Common Stock, Shares Outstanding		79,872,095

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Oct. 03, 2015	Jul. 04, 2015	Oct. 04, 2014
Current assets:
Cash and equivalents	$ 26,542	$ 46,947	$ 70,070
Available for sale securities	15,454	17,880	17,841
Receivables	6,351	7,122	6,447
Inventories, net	34,931	31,317	34,747
Prepaid and other	13,830	10,774	11,279
Total current assets	97,108	114,040	140,384
Available for sale securities	5,290	5,241	5,403
Property and equipment, net	89,804	93,229	94,118
Other assets	3,861	3,903	6,298
Total assets	196,063	216,413	246,203
Current liabilities:
Accounts payable	13,936	12,595	16,969
Accrued liabilities	25,588	28,217	31,527
Total current liabilities	39,524	40,812	48,496
Deferred rent and other lease incentives	22,300	23,952	25,474
Uncertain tax positions	82	81	78
Total liabilities	$ 61,906	$ 64,845	$ 74,048
Commitments and contingencies
Shareholders’ equity:
Preferred stock-authorized 1,000,000 shares at $0.001 par value per share; no shares issued and outstanding	$ 0	$ 0	$ 0
Common stock-authorized 135,000,000 shares at $0.001 par value per share; issued and outstanding 79,871,705, 79,660,973 and 79,606,162 shares	80	80	80
Additional paid-in capital	146,228	145,499	143,652
Accumulated other comprehensive income (loss)	(2,775)	(1,776)	1,413
Retained earnings (deficit)	(9,376)	7,765	27,010
Total shareholders’ equity	134,157	151,568	172,155
Total liabilities and shareholders’ equity	$ 196,063	$ 216,413	$ 246,203

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Oct. 03, 2015	Jul. 04, 2015	Oct. 04, 2014
Statement of Financial Position [Abstract]
Preferred stock, shares authorized (in shares)	1,000,000	1,000,000	1,000,000
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001	$ 0.001
Preferred stock, shares issued (in shares)	0	0	0
Preferred stock, shares outstanding (in shares)	0	0	0
Common stock, shares authorized (in shares)	135,000,000	135,000,000	135,000,000
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001	$ 0.001
Common stock, shares issued (in shares)	79,871,705	79,660,973	79,606,162
Common stock, shares outstanding (in shares)	79,871,705	79,660,973	79,606,162

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Oct. 03, 2015	Oct. 04, 2014
Income Statement [Abstract]
Net sales	$ 96,283	$ 102,156
Cost of sales, including production and occupancy	68,420	69,386
Gross margin	27,863	32,770
Selling, general and administrative expenses	44,890	42,127
Operating loss	(17,027)	(9,357)
Interest and other income, net	(87)	407
Loss from continuing operations, before income taxes	(17,114)	(8,950)
Income tax provision (benefit)	27	36
Loss from continuing operations, net of tax	(17,141)	(8,986)
Loss from discontinued operations, net of tax	0	(1,831)
Net loss	$ (17,141)	$ (10,817)
Basic per share amounts:
Net loss from continuing operations, net of tax (in dollars per share)	$ (0.22)	$ (0.11)
Net loss from discontinued operations, net of tax (in dollars per share)	0	(0.03)
Net loss (in dollars per share)	(0.22)	(0.14)
Diluted per share amounts:
Net loss from continuing operations, net of tax (in dollars per share)	(0.22)	(0.11)
Net loss from discontinued operations, net of tax (in dollars per share)	0	(0.03)
Net loss (in dollars per share)	$ (0.22)	$ (0.14)
Basic weighted average shares outstanding (in shares)	79,722	79,574
Diluted weighted average shares outstanding (in shares)	79,722	79,574
Dividends declared per share (in dollars per share)	$ 0	$ 0.015
Other comprehensive income (loss)
Gain (loss) on available for sale securities	$ 48	$ 37
Foreign currency translation adjustments	(1,047)	(1,785)
Other comprehensive income (loss)	(999)	(1,748)
Comprehensive loss	$ (18,140)	$ (12,565)

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Oct. 03, 2015	Oct. 04, 2014
Cash flows from operating activities:
Net loss	$ (17,141)	$ (10,817)
Adjustments to reconcile net loss to cash used by operating activities:
Non-cash compensation expense	725	749
Depreciation and amortization	4,510	3,884
Non-cash charge for asset impairment	1,517	0
Other	51	(393)
Changes in operating assets and liabilities:
Receivables	765	(1,640)
Inventories	(3,645)	(3,064)
Prepaid expenses and other	(3,008)	(501)
Accounts payable	1,202	(565)
Deferred rent and other lease incentives	(1,570)	(373)
Accrued liabilities	(2,535)	(7,114)
Net cash used by operating activities	(19,129)	(19,834)
Cash flows from investing activities:
Purchase of property and equipment and store construction deposits	(2,740)	(9,380)
Proceeds from sales of investment securities	1,509	6,575
Net cash used by investing activities	(1,231)	(2,805)
Cash flows from financing activities:
Proceeds from issuance of common stock	4	6
Cash dividends paid	0	(1,194)
Net cash provided (used) by financing activities	4	(1,188)
Net decrease in cash and equivalents	(20,356)	(23,827)
Effect of exchange rate changes on cash	(49)	(448)
Cash and equivalents:
Beginning of period	46,947	94,345
End of period	$ 26,542	$ 70,070

INTERIM FINANCIAL STATEMENTS

INTERIM FINANCIAL STATEMENTS	3 Months Ended
	Oct. 03, 2015
Accounting Policies [Abstract]
INTERIM FINANCIAL STATEMENTS	INTERIM FINANCIAL STATEMENTS The accompanying condensed consolidated balance sheets of bebe stores, inc. (the “Company”) as of October 3, 2015 and October 4, 2014 , the condensed consolidated statements of operations and comprehensive loss for the three months ended October 3, 2015 and October 4, 2014 and the condensed consolidated statements of cash flows for the three months ended October 3, 2015 and October 4, 2014 have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X, without audit. Accordingly, they do not include all of the information required by accounting principles generally accepted in the United States of America for annual financial statements. Therefore, these condensed consolidated financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the fiscal year ended July 4, 2015. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary to present fairly the financial position at the balance sheet dates and the results of operations for the periods presented have been included. The condensed consolidated balance sheet at July 4, 2015, presented herein, was derived from the audited balance sheet included in the Company’s Annual Report on Form 10-K for the fiscal year ended July 4, 2015. The Company’s business is affected by the pattern of seasonality common to most retail apparel businesses. The results for the periods presented are not necessarily indicative of future financial results. The Company has incurred net losses and cash used in operating activities in fiscal 2015, 2014 and 2013. Cash and equivalents and short-term available securities were $64.8 million as of July 4, 2015. During the three months ended October 3, 2015, net loss and net cash used in operating activities were $17.1 million and $19.1 million , respectively. As a result, cash and equivalents and short-term available for sale securities were $42.0 million as of October 3, 2015. We used $19.1 million , $25.0 million , $30.3 million and $8.4 million net of our cash in operating activities in the first quarter of fiscal 2016 and in the fiscal years 2015, 2014 and 2013 respectively. Our liquidity is dependent upon our ability to generate cash from operations along with usage of our existing cash and cash equivalents and short-term investments. Our strategic focus for fiscal 2016 is to continue building the bebe brand, enhancing the product offerings and merchandising the stores by lifestyle occasion, while maintaining a compelling fashion and value equation for our customers. In addition to driving sales and improving margin, our focus will also continue to be on pragmatically preserving cash. We believe our cash and equivalents and short-term available for sale securities, together with our cash flows from operations, will be sufficient to meet our operating and capital requirements for at least the next twelve months. Our future operating and capital requirements, however, will depend on numerous factors, including without limitation, the size and number of new and expanded stores and/or store concepts, investment costs for management information systems, potential investments and/or licensing arrangements, and future results of operations. The inability to generate positive cash flow from operations could have a material adverse effect on our business and financial conditions.

FISCAL YEAR

FISCAL YEAR	3 Months Ended
	Oct. 03, 2015
Accounting Policies [Abstract]
FISCAL YEAR	FISCAL YEAR The Company’s fiscal year is a 52 or 53 week period, each period ending on the first Saturday on or after June 30. Fiscal years 2016 and 2015 both include 52 weeks. The three month periods ended October 3, 2015 and October 4, 2014 each include 13 weeks.

RECENT ACCOUNTING PRONOUNCEMENT

RECENT ACCOUNTING PRONOUNCEMENTS	3 Months Ended
	Oct. 03, 2015
Accounting Changes and Error Corrections [Abstract]
RECENT ACCOUNTING PRONOUNCEMENTS	RECENT ACCOUNTING PRONOUNCEMENTS Revenue Recognition In May 2014, the FASB issued ASU No. 2014-09, "Revenue from Contracts with Customers", or ASU 2014-09, which states that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve this, an entity will need to: identify the contract with a customer; identify the separate performance obligations in the contract; determine the transaction price; allocate the transaction price to the separate performance obligation in the contract; and recognize revenue when (or as) the entity satisfies each performance obligation. ASU No. 2014-09 will be effective beginning with the Company's 2019 fiscal year. The Company is currently assessing its approach to the adoption of this standard and the impact on our results of operations and financial position. Going Concern In August 2014, the FASB issued ASU No. 2014-15, "Presentation of Financial Statements - Going Concern (Subtopic 205-40); Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern," which requires management of a company to evaluate whether there is substantial doubt about the company's ability to continue as a going concern. This ASU is effective for the annual reporting period ending 2017, and for interim and annual reporting periods thereafter, with early adoption permitted. The Company will evaluate the impact of this standard at the time it becomes effective. Consolidations In February 2015, the FASB issued ASU No. 2015-02," Amendments to the Consolidation Analysis", The new standard amends the guidelines for determining whether certain legal entities should be consolidated and reduces the number of consolidation models. The new standard is effective for fiscal years, and periods within those fiscal years, beginning after December 15, 2015, with early adoption permitted. Thus the standard will be effective beginning with the Company's 2017 fiscal year. The Company is currently evaluating the impact, of adopting this new accounting guidance on its results of operations and financial position. Technical Corrections and Updates In June 2015, the FASB issued ASU No. 2015-10, Technical Corrections and Update. The amendments in this update cover a wide range of topics in the codification and are generally categorized as follows: Amendments Related to Differences between Original Guidance and the Codification: Guidance Clarification and Reference Corrections: Simplification: and Minor Improvements. The amendments are effective for the fiscal years and interim periods within those fiscal years, beginning with the Company's 2017 fiscal year; with early adoption permitted. As the objectives of this standard are to clarify the codification, correct unintended application of guidance, eliminate inconsistencies, and, to improve the codification's presentation of guidance, the adoption of this standard is not expected to have a material effect on our results of operations and financial position. Inventory In July 2015, the FASB issued ASU No. 2015-11, "Simplifying the Measurement of Inventory". The new standard amends the guidelines for the measurement of inventory from lower of cost or market to the lower of cost and net realizable value (NRV). NRV is defined as the estimated selling prices in the ordinary course of business less reasonably predictable costs of completion, disposal, and transportation. Under existing standards, inventory is measured at lower of cost or market, which requires the consideration of replacement cost, NRV and NRV less an amount that approximates a normal profit margin. This ASU eliminates the requirement to determine and consider replacement cost or NRV less an approximately normal profit margin for inventory measurement. The new standard is effective prospectively at the beginning of the Company's 2018 fiscal year. We are currently evaluating the impact, if any, of adopting this new accounting guidance on our results of operations and financial position.

DISCONTINUED OPERATIONS

DISCONTINUED OPERATIONS	3 Months Ended
	Oct. 03, 2015
Discontinued Operations and Disposal Groups [Abstract]
DISCONTINUED OPERATIONS	DISCONTINUED OPERATIONS In the fourth quarter of fiscal 2014, the Company discontinued the operations of the 2b division by closing all existing 18 2b stores including 2b.com, allowing the Company to focus its efforts on the core bebe brand's retail and outlet stores, e-commerce and international licensing business. As of October 4, 2014, the Company had a remaining reserve of $ 5.4 million for future costs associated with discontinued operations. This reserve was included within the "Accrued liabilities" line in the consolidated balance sheets. A roll forward of the reserve is presented as follows: Lease Obligations Other Costs Total (In thousands) Balance as of July 5, 2014 $ 6,385 $ 1,000 $ 7,385 Costs incurred in fiscal 2015 from July 5, 2014 through October 4, 2014 1,116 715 1,831 Cash payments, markdowns or adjustments applied (2,675 ) (1,144 ) (3,819 ) Balance as of October 4, 2014 $ 4,826 $ 571 $ 5,397 For leases where a settlement has been reached, but payment was not made prior to the end of the quarter, the obligation was adjusted to represent the amount of the agreed-upon settlement. Other costs consisted primarily of a reserve for estimated losses on open purchase commitments for 2b inventory when operations were discontinued, and severance costs incurred. All liabilities were settled during fiscal 2015.

INVESTMENTS

INVESTMENTS	3 Months Ended
	Oct. 03, 2015
Investments Schedule [Abstract]
INVESTMENTS	INVESTMENTS The Company’s investment portfolio consists of certificates of deposit and auction rate securities. The Company held short term available for sale securities totaling $15.5 million as of October 3, 2015 , that consisted entirely of certificates of deposit at cost which approximates fair value. The Company also holds long term available for sale securities at fair value totaling $5.3 million as of October 3, 2015 , that consisted entirely of interest bearing auction rate securities (“ARS”). The Company holds interest bearing ARS consisting of federally insured student loan backed securities. As of October 3, 2015 , the Company’s ARS portfolio totaled approximately $9.0 million and was classified as available for sale securities, net of a temporary impairment charge of $3.7 million . As of that date, the Company’s ARS portfolio consisted of approximately 22% A rated investments and 78% CCC rated investments. These ARS investments are intended to provide liquidity via an auction process that resets the applicable interest rate at predetermined calendar intervals, allowing investors to either roll over their holdings or gain immediate liquidity by selling such interests at par. The uncertainties in the credit markets that began in February 2008 have affected the Company’s holdings in ARS investments and auctions for the Company’s investments in these securities have failed to settle on their respective settlement dates. Historically the fair value of ARS investments had approximated par value due to the frequent resets through the auction process. While the Company continues to earn interest on its ARS investments at the maximum contractual rate, these investments are not currently trading and therefore do not currently have a readily determinable market value. Accordingly, the estimated fair value of ARS no longer approximates par value. Consequently, the investments are not currently liquid, and the Company will not be able to access these funds until a future auction of these investments is successful, the issuer redeems the securities or at maturity. Maturity dates for the ARS investment range from 2031 to 2033 with principal distributions occurring on certain securities prior to maturity. To date, principal distributions and maturities of the securities held by the Company have all been at par value. During the three months ended October 4, 2014 , $6.6 million of ARS held by the Company were settled at par. The Company reviews its investments for impairment in accordance with guidance issued by the FASB and SEC in order to determine the classification of the impairment as “temporary” or “other-than-temporary”. A temporary impairment charge results in an unrealized loss being recorded in the accumulated other comprehensive income component of shareholders’ equity. Such an unrealized loss does not affect net income for the applicable accounting period. An other-than-temporary impairment charge is recorded as a loss in the condensed consolidated statements of operations and comprehensive loss for the applicable accounting period. When evaluating the investments for other-than-temporary impairment, the Company estimates the expected cash flows of the underlying collateral by reviewing factors such as the length of time and extent to which fair value has been below cost basis, the financial condition of the issuer and any changes thereto, and the Company’s intent to sell, or whether it is more likely than not it will be required to sell, the investment before recovery of the investment’s amortized cost basis. The Company has not recorded any impairment loss from its available for sale investments as other-than-temporary based on such analysis. The valuation of the Company’s investment portfolio is subject to uncertainties that are difficult to predict. Factors that may impact its valuation include changes to credit ratings of the securities as well as to the underlying assets supporting those securities, rates of default of the underlying assets, underlying collateral value, discount rates and ongoing strength and quality of market credit and liquidity. The following is a summary of our available for sale securities: As of October 3, 2015 Cost Unrealized Unrealized Estimated (In thousands) Short term certificates of deposit $ 15,454 $ — $ — $ 15,454 Long term auction rate securities $ 9,000 $ — $ 3,710 $ 5,290 As of July 4, 2015 Cost Unrealized Unrealized Estimated (In thousands) Short term certificates of deposit $ 17,880 $ — $ — $ 17,880 Long term auction rate securities $ 9,000 $ — $ 3,759 $ 5,241 As of October 4, 2014 Cost Unrealized Unrealized Estimated (In thousands) Short term certificates of deposit $ 17,841 $ — $ — $ 17,841 Long term auction rate securities $ 9,000 $ — $ 3,597 $ 5,403

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	3 Months Ended
	Oct. 03, 2015
Fair Value Disclosures [Abstract]
FAIR VALUE MEASUREMENTS	FAIR VALUE MEASUREMENTS The FASB has established a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers include: Level 1, defined as observable inputs such as quoted prices in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. As of October 3, 2015 , the Company held financial instruments that are measured at fair value on a recurring basis. These included cash equivalents and available for sale securities. Cash equivalents consist of money market funds. Short term available for sale securities consist of certificates of deposit. Long term available for sale securities consist of ARS. These ARS consist of federally insured student loan backed securities. The Company determined the estimated fair value of its investment in ARS as of October 3, 2015 by reviewing trading activity for similar securities in secondary markets as well as by using a discounted cash flow model. The assumptions used in preparing the discounted cash flow model include estimates for liquidity (average of LIBOR + 5.64% ), interest rates (weighted average of 0.2% ), timing (range from 10 – 14 years), credit ratings and amount of cash flows and expected holding periods of the ARS and recent trading activity in the secondary marketplace. The following items are measured at fair value on a recurring basis as of October 3, 2015 : Description October 3, Using Quoted Prices Significant Significant (Level 1) (Level 2) (Level 3) Fair value measurements at reporting date (In thousands) Cash equivalents $ 426 $ 426 $ — $ — Current available for sale securities 15,454 — 15,454 — Non-current available for sale securities 5,290 — — 5,290 Total $ 21,170 $ 426 $ 15,454 $ 5,290 The following items are measured at fair value on a recurring basis as of October 4, 2014 : Description October 4, 2014 Using Quoted Prices Significant Significant (Level 1) (Level 2) (Level 3) Fair value measurements at reporting date (In thousands) Cash equivalents $ 36,400 $ 36,400 $ — $ — Current available for sale securities 17,841 — 17,841 — Long term auction rate securities 5,403 — — 5,403 Total $ 59,644 $ 36,400 $ 17,841 $ 5,403 During the quarter ended October 3, 2015 , there were no transfers of assets and liabilities between Level 1 (quoted prices in active markets for identical assets) and Level 2 (significant other observable inputs) of the fair value measurement hierarchy. An impairment charge has been recorded in accumulated other comprehensive income that reduces the carrying amount of the applicable non-current assets of $9.0 million to their fair value of $5.3 million as of October 3, 2015 . The following table presents the Company’s activity for assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three months ended October 3, 2015 : Three Months Ended (In thousands) Balance at beginning of period $ 5,241 Total gains or (losses) (realized or unrealized) Included in net loss — Included in accumulated other comprehensive income 49 Balance at end of period $ 5,290 Non-Financial Assets: The Company measures certain non-financial assets and liabilities, including long-lived assets, at fair value on a non-recurring basis. During the three months ended October 3, 2015 and October 4, 2014 , the Company recorded impairment charges of approximately $1.5 million and $0.0 million , respectively, related to under-performing stores. The following table presents the Company’s considerations of at-risk assets for the three month periods ended October 3, 2015 and October 4, 2014 , respectively: Three Months Ended October 3, 2015 October 4, 2014 (dollar amounts in millions) Number of stores identified as at risk and evaluated for impairment 11 18 Number of stores identified as at risk, but not impaired (5 ) — Number of stores identified as at risk with impairment 6 18 Total carrying amount of stores identified as at risk prior to any impairment charges taken $ 2.3 $ 2.2 Total carrying amount of stores identified as at risk, but not impaired (0.8 ) (2.2 ) Total carrying amount of stores identified for impairment 1.5 — Impairment charges recorded during the period $ 1.5 $ — The fair market value of these assets was determined using the income approach and level 3 inputs, which require management to make significant estimates about future operating plans and projected cash flows. Management estimates the amount and timing of future cash flows based on its experience and knowledge of the retail market in which each store operates. The assumptions used in preparing the discounted cash flow model and the related sensitivity analysis around the discounted cash flow model include estimates for weighted average cost of capital 11.0% and annual revenue growth rates (range from (4.0)% – 5.0% ). The stores not impaired had undiscounted cash flows that exceeded their net carrying amount at a weighted average of 52% for the three month period ended October 3, 2015 . For the three months ended October 4, 2014 , the stores not impaired had undiscounted cash flows that exceeded their net carrying amount at a weighted average of 280% . The impairment charge is included in selling, general and administrative expenses (“SG&A”) in the accompanying condensed consolidated statements of operations and comprehensive loss. The Company was not required to measure any other significant non-financial assets and liabilities at fair value.

INVENTORIES

INVENTORIES	3 Months Ended
	Oct. 03, 2015
Inventory Disclosure [Abstract]
INVENTORIES	INVENTORIES The Company’s inventories consisted of: As of October 3, 2015 July 4, 2015 October 4, 2014 (In thousands) Raw materials $ 773 $ 548 $ 1,060 Merchandise available for sale 34,158 30,769 33,687 Inventories, net $ 34,931 $ 31,317 $ 34,747

CREDIT FACILITIES

CREDIT FACILITIES	3 Months Ended
	Oct. 03, 2015
Debt Disclosure [Abstract]
CREDIT FACILITIES	CREDIT FACILITIES On May 14, 2014 the Company entered into a secured stand-by letter of credit agreement which provides for issuance of one or more stand-by letters of credit. As of October 3, 2015 , the Company had $3.8 million outstanding, related to two stand-by letters of credit. To date, no beneficiary has drawn upon the stand-by letter of credit.

INCOME TAXES

INCOME TAXES	3 Months Ended
	Oct. 03, 2015
Income Tax Disclosure [Abstract]
INCOME TAXES	INCOME TAXES Deferred income taxes arise from temporary differences between the tax and financial statement recognition of revenue and expenses. The Company regularly assesses the need for a valuation allowance against its deferred tax assets. In evaluating whether it is more likely than not that some or all of the Company’s deferred tax assets will not be realized, it considers all available positive and negative evidence, including recent year’s operational results which is objectively verifiable evidence. As a result of its evaluation of the realizability of its deferred tax assets as of October 3, 2015 , the Company continues to believe, based upon all available evidence, that it is more likely than not that the majority of its deferred tax assets will continue to not be realized. Accordingly, the tax benefit related to the current quarter losses is not recognized. The Company will continue to maintain a valuation allowance against its deferred tax assets until the Company believes it is more likely than not that these assets will be realized in the future. If sufficient positive evidence arises in the future indicating that all or a portion of the deferred tax assets meet the more likely than not standard, the valuation allowance will be reversed accordingly in the period that such determination is made.

EARNINGS PER SHARE

EARNINGS PER SHARE	3 Months Ended
	Oct. 03, 2015
Earnings Per Share [Abstract]
EARNINGS PER SHARE	EARNINGS PER SHARE Basic earnings per share is computed as net earnings divided by the weighted average number of common shares outstanding for the period. Diluted earnings per share reflects the potential dilution that could occur from common shares issuable through the exercise of dilutive stock options. There is no difference between the number of shares used in the basic and diluted earnings per share computations. Excluded from the computation of the number of diluted weighted average shares outstanding were options to purchase 3,799,152 and 4,908,530 shares of common stock for the three months ended October 3, 2015 and October 4, 2014 , respectively, which would have been anti-dilutive.

STOCK BASED COMPENSATION

STOCK BASED COMPENSATION	3 Months Ended
	Oct. 03, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
STOCK BASED COMPENSATION	STOCK BASED COMPENSATION The following table summarizes the stock based compensation expense recognized under the Company’s stock plan during the three months ended October 3, 2015 and October 4, 2014 : Three Months Ended October 3, 2015 October 4, 2014 (In thousands) Stock options $ 336 $ 433 Nonvested stock awards/units 389 316 Total stock based compensation expense $ 725 $ 749 Unrecognized compensation cost related to nonvested stock options and nonvested stock awards/units totaled approximately $0.7 million and $0.6 million , respectively, as of October 3, 2015 . This cost is expected to be recognized over a weighted average period of 1.8 years and 2.1 years respectively. The weighted average fair value of stock options at their grant date during the three months ended October 3, 2015 and October 4, 2014 was $0 and $0.84 , respectively.

LEGAL PROCEEDINGS

LEGAL PROCEEDINGS	3 Months Ended
	Oct. 03, 2015
Commitments and Contingencies Disclosure [Abstract]
LEGAL PROCEEDINGS	LEGAL PROCEEDINGS As of the date of this filing, the Company is involved in ongoing legal proceedings as described below. A former employee filed a complaint against the Company on July 27, 2006, in the Superior Court of California, San Mateo County (Case No. CIV 456550) alleging a failure to pay wages and to provide meal and rest periods, among other claims. The plaintiff purported to bring the action on behalf of current and former California bebe managers who are similarly situated. On or about September 2014, the parties entered a settlement agreement conditioned upon court approval and a certain class participation rate which is consistent with amounts the Company previously accrued. The Court granted preliminary approval of the settlement. The parties intend to proceed with the administration of the settlement terms with the class members. A former employee filed a complaint against the Company on November 2, 2010, in the Superior Court of California, San Bernardino County (Case No. CIVRS1011823) alleging a failure to pay wages, failure to provide meal and rest periods, and other violations of the California Labor Code and Business & Professions Code §17200 et. seq . The plaintiff purported to bring the action on behalf of current and former California bebe stylists and sales associates who are similarly situated. The complaint seeks damages, civil penalties, and injunctive relief among other remedies. The Company continues to defend against the claims. Classwide discovery has not yet commenced. There is no trial date set. The Company is unable to estimate an amount or range of any reasonably possible losses. A customer served the Company with a complaint on January 31, 2014, in the United States District Court for the Northern District of California (Civil Action No. C14-267 DMR) alleging various violations of the Telephone Consumer Protection Act (47 U.S.C. §§227 et seq .) and violations of California’s unfair competition law (California Business and Professions Code §§ 17200, et seq .) stemming from an alleged failure to obtain customer consent prior to sending text messages. The plaintiff purported to bring the action on behalf of others similarly situated. The complaint seeks damages and injunctive relief among other remedies. The parties have commenced discovery. The Company continues to defend itself against the claims. The Company is unable to estimate an amount or range of any reasonably possible losses. A customer served the Company with a complaint on May 20, 2014 in the United States District Court for the Northern District of California (Civil Action No. 3:14-CV-01968) alleging negligent and willful violations of the Telephone Consumer Protection Act (47 U.S.C. §§227 et seq.) stemming from an alleged failure to obtain customer consent prior to sending text messages. The plaintiff purports to bring the action also on behalf of others similarly situated. The complaint seeks damages and injunctive relief other remedies. The Company continues to defend itself against the claims. This proceeding was consolidated with the action referenced above (Civil Action No. C14-267 DMR). The Company is unable to estimate an amount or range of any reasonably possible losses. The Company is involved in additional legal proceedings arising in the normal course of business. Regarding all matters referenced herein, the Company intends to defend itself vigorously and has accrued estimated amounts of liability where required, appropriate and determinable. Any such estimates may be revised as further information becomes available. The results of any litigation are inherently uncertain and as such the Company cannot assure that it will be able to successfully defend itself in these lawsuits nor that any amounts accrued are sufficient. The Company believes that the legal proceedings referenced herein, as well as the amounts accrued as of this filing, either individually or in the aggregate, will not have a material adverse effect on our business, financial condition or results of operations.

INTERIM FINANCIAL STATEMENTS (P

INTERIM FINANCIAL STATEMENTS (Policies)	3 Months Ended
	Oct. 03, 2015
Accounting Policies [Abstract]
Interim financial statements	The accompanying condensed consolidated balance sheets of bebe stores, inc. (the “Company”) as of October 3, 2015 and October 4, 2014 , the condensed consolidated statements of operations and comprehensive loss for the three months ended October 3, 2015 and October 4, 2014 and the condensed consolidated statements of cash flows for the three months ended October 3, 2015 and October 4, 2014 have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X, without audit. Accordingly, they do not include all of the information required by accounting principles generally accepted in the United States of America for annual financial statements. Therefore, these condensed consolidated financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the fiscal year ended July 4, 2015. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary to present fairly the financial position at the balance sheet dates and the results of operations for the periods presented have been included. The condensed consolidated balance sheet at July 4, 2015, presented herein, was derived from the audited balance sheet included in the Company’s Annual Report on Form 10-K for the fiscal year ended July 4, 2015. The Company’s business is affected by the pattern of seasonality common to most retail apparel businesses. The results for the periods presented are not necessarily indicative of future financial results.
Fiscal year	The Company’s fiscal year is a 52 or 53 week period, each period ending on the first Saturday on or after June 30. Fiscal years 2016 and 2015 both include 52 weeks. The three month periods ended October 3, 2015 and October 4, 2014 each include 13 weeks.
Recent accounting pronouncements	Revenue Recognition In May 2014, the FASB issued ASU No. 2014-09, "Revenue from Contracts with Customers", or ASU 2014-09, which states that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve this, an entity will need to: identify the contract with a customer; identify the separate performance obligations in the contract; determine the transaction price; allocate the transaction price to the separate performance obligation in the contract; and recognize revenue when (or as) the entity satisfies each performance obligation. ASU No. 2014-09 will be effective beginning with the Company's 2019 fiscal year. The Company is currently assessing its approach to the adoption of this standard and the impact on our results of operations and financial position. Going Concern In August 2014, the FASB issued ASU No. 2014-15, "Presentation of Financial Statements - Going Concern (Subtopic 205-40); Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern," which requires management of a company to evaluate whether there is substantial doubt about the company's ability to continue as a going concern. This ASU is effective for the annual reporting period ending 2017, and for interim and annual reporting periods thereafter, with early adoption permitted. The Company will evaluate the impact of this standard at the time it becomes effective. Consolidations In February 2015, the FASB issued ASU No. 2015-02," Amendments to the Consolidation Analysis", The new standard amends the guidelines for determining whether certain legal entities should be consolidated and reduces the number of consolidation models. The new standard is effective for fiscal years, and periods within those fiscal years, beginning after December 15, 2015, with early adoption permitted. Thus the standard will be effective beginning with the Company's 2017 fiscal year. The Company is currently evaluating the impact, of adopting this new accounting guidance on its results of operations and financial position. Technical Corrections and Updates In June 2015, the FASB issued ASU No. 2015-10, Technical Corrections and Update. The amendments in this update cover a wide range of topics in the codification and are generally categorized as follows: Amendments Related to Differences between Original Guidance and the Codification: Guidance Clarification and Reference Corrections: Simplification: and Minor Improvements. The amendments are effective for the fiscal years and interim periods within those fiscal years, beginning with the Company's 2017 fiscal year; with early adoption permitted. As the objectives of this standard are to clarify the codification, correct unintended application of guidance, eliminate inconsistencies, and, to improve the codification's presentation of guidance, the adoption of this standard is not expected to have a material effect on our results of operations and financial position. Inventory In July 2015, the FASB issued ASU No. 2015-11, "Simplifying the Measurement of Inventory". The new standard amends the guidelines for the measurement of inventory from lower of cost or market to the lower of cost and net realizable value (NRV). NRV is defined as the estimated selling prices in the ordinary course of business less reasonably predictable costs of completion, disposal, and transportation. Under existing standards, inventory is measured at lower of cost or market, which requires the consideration of replacement cost, NRV and NRV less an amount that approximates a normal profit margin. This ASU eliminates the requirement to determine and consider replacement cost or NRV less an approximately normal profit margin for inventory measurement. The new standard is effective prospectively at the beginning of the Company's 2018 fiscal year. We are currently evaluating the impact, if any, of adopting this new accounting guidance on our results of operations and financial position.
Investments	The Company reviews its investments for impairment in accordance with guidance issued by the FASB and SEC in order to determine the classification of the impairment as “temporary” or “other-than-temporary”. A temporary impairment charge results in an unrealized loss being recorded in the accumulated other comprehensive income component of shareholders’ equity. Such an unrealized loss does not affect net income for the applicable accounting period. An other-than-temporary impairment charge is recorded as a loss in the condensed consolidated statements of operations and comprehensive loss for the applicable accounting period. When evaluating the investments for other-than-temporary impairment, the Company estimates the expected cash flows of the underlying collateral by reviewing factors such as the length of time and extent to which fair value has been below cost basis, the financial condition of the issuer and any changes thereto, and the Company’s intent to sell, or whether it is more likely than not it will be required to sell, the investment before recovery of the investment’s amortized cost basis. The Company has not recorded any impairment loss from its available for sale investments as other-than-temporary based on such analysis.
Fair value of financial instruments	The valuation of the Company’s investment portfolio is subject to uncertainties that are difficult to predict. Factors that may impact its valuation include changes to credit ratings of the securities as well as to the underlying assets supporting those securities, rates of default of the underlying assets, underlying collateral value, discount rates and ongoing strength and quality of market credit and liquidity.
Fair value measurements	The FASB has established a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers include: Level 1, defined as observable inputs such as quoted prices in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions.
Income taxes	Deferred income taxes arise from temporary differences between the tax and financial statement recognition of revenue and expenses. The Company regularly assesses the need for a valuation allowance against its deferred tax assets. In evaluating whether it is more likely than not that some or all of the Company’s deferred tax assets will not be realized, it considers all available positive and negative evidence, including recent year’s operational results which is objectively verifiable evidence.
Earnings per share	Basic earnings per share is computed as net earnings divided by the weighted average number of common shares outstanding for the period. Diluted earnings per share reflects the potential dilution that could occur from common shares issuable through the exercise of dilutive stock options.

DISCONTINUED OPERATIONS (Tables

DISCONTINUED OPERATIONS (Tables)	3 Months Ended
	Oct. 03, 2015
Discontinued Operations and Disposal Groups [Abstract]
Schedule of Discontinued Operations Reserve Roll Forward	A roll forward of the reserve is presented as follows: Lease Obligations Other Costs Total (In thousands) Balance as of July 5, 2014 $ 6,385 $ 1,000 $ 7,385 Costs incurred in fiscal 2015 from July 5, 2014 through October 4, 2014 1,116 715 1,831 Cash payments, markdowns or adjustments applied (2,675 ) (1,144 ) (3,819 ) Balance as of October 4, 2014 $ 4,826 $ 571 $ 5,397

INVESTMENTS (Tables)

INVESTMENTS (Tables)	3 Months Ended
	Oct. 03, 2015
Investments Schedule [Abstract]
Summary of Available for Sale Securities	The following is a summary of our available for sale securities: As of October 3, 2015 Cost Unrealized Unrealized Estimated (In thousands) Short term certificates of deposit $ 15,454 $ — $ — $ 15,454 Long term auction rate securities $ 9,000 $ — $ 3,710 $ 5,290 As of July 4, 2015 Cost Unrealized Unrealized Estimated (In thousands) Short term certificates of deposit $ 17,880 $ — $ — $ 17,880 Long term auction rate securities $ 9,000 $ — $ 3,759 $ 5,241 As of October 4, 2014 Cost Unrealized Unrealized Estimated (In thousands) Short term certificates of deposit $ 17,841 $ — $ — $ 17,841 Long term auction rate securities $ 9,000 $ — $ 3,597 $ 5,403

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	3 Months Ended
	Oct. 03, 2015
Fair Value Disclosures [Abstract]
Summary of Items Measured at Fair Value on a Recurring Basis	The following items are measured at fair value on a recurring basis as of October 3, 2015 : Description October 3, Using Quoted Prices Significant Significant (Level 1) (Level 2) (Level 3) Fair value measurements at reporting date (In thousands) Cash equivalents $ 426 $ 426 $ — $ — Current available for sale securities 15,454 — 15,454 — Non-current available for sale securities 5,290 — — 5,290 Total $ 21,170 $ 426 $ 15,454 $ 5,290 The following items are measured at fair value on a recurring basis as of October 4, 2014 : Description October 4, 2014 Using Quoted Prices Significant Significant (Level 1) (Level 2) (Level 3) Fair value measurements at reporting date (In thousands) Cash equivalents $ 36,400 $ 36,400 $ — $ — Current available for sale securities 17,841 — 17,841 — Long term auction rate securities 5,403 — — 5,403 Total $ 59,644 $ 36,400 $ 17,841 $ 5,403
Schedule of Assets Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs	The following table presents the Company’s activity for assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three months ended October 3, 2015 : Three Months Ended (In thousands) Balance at beginning of period $ 5,241 Total gains or (losses) (realized or unrealized) Included in net loss — Included in accumulated other comprehensive income 49 Balance at end of period $ 5,290
Summary of Considerations of At-Risk Assets	The following table presents the Company’s considerations of at-risk assets for the three month periods ended October 3, 2015 and October 4, 2014 , respectively: Three Months Ended October 3, 2015 October 4, 2014 (dollar amounts in millions) Number of stores identified as at risk and evaluated for impairment 11 18 Number of stores identified as at risk, but not impaired (5 ) — Number of stores identified as at risk with impairment 6 18 Total carrying amount of stores identified as at risk prior to any impairment charges taken $ 2.3 $ 2.2 Total carrying amount of stores identified as at risk, but not impaired (0.8 ) (2.2 ) Total carrying amount of stores identified for impairment 1.5 — Impairment charges recorded during the period $ 1.5 $ —

INVENTORIES (Tables)

INVENTORIES (Tables)	3 Months Ended
	Oct. 03, 2015
Inventory Disclosure [Abstract]
Summary of Inventories	The Company’s inventories consisted of: As of October 3, 2015 July 4, 2015 October 4, 2014 (In thousands) Raw materials $ 773 $ 548 $ 1,060 Merchandise available for sale 34,158 30,769 33,687 Inventories, net $ 34,931 $ 31,317 $ 34,747

STOCK BASED COMPENSATION (Table

STOCK BASED COMPENSATION (Tables)	3 Months Ended
	Oct. 03, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Summary of Stock Based Compensation Expense Recognized Under Stock Plan	The following table summarizes the stock based compensation expense recognized under the Company’s stock plan during the three months ended October 3, 2015 and October 4, 2014 : Three Months Ended October 3, 2015 October 4, 2014 (In thousands) Stock options $ 336 $ 433 Nonvested stock awards/units 389 316 Total stock based compensation expense $ 725 $ 749

INTERIM FINANCIAL STATEMENTS -

INTERIM FINANCIAL STATEMENTS - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Oct. 03, 2015	Oct. 04, 2014	Jul. 04, 2015	Jul. 05, 2014	Jul. 06, 2013
Accounting Policies [Abstract]
Cash equivalents and short-term available securities	$ 42,000		$ 64,800
Net loss	17,141	$ 10,817
Net cash used in operating activities	$ 19,129	$ 19,834	$ 25,000	$ 30,300	$ 8,400

FISCAL YEAR - Narrative (Detail

FISCAL YEAR - Narrative (Details)	3 Months Ended		12 Months Ended
	Oct. 03, 2015	Oct. 04, 2014	Jul. 04, 2015
Accounting Policies [Line Items]
Fiscal Period Duration	91 days	91 days
Fiscal Year Duration	364 days		364 days
Minimum
Accounting Policies [Line Items]
Fiscal Period Duration	364 days	364 days
Maximum
Accounting Policies [Line Items]
Fiscal Period Duration	371 days	371 days

DISCONTINUED OPERATIONS - Narra

DISCONTINUED OPERATIONS - Narrative (Details) $ in Thousands	3 Months Ended
	Jul. 05, 2014USD ($)Store	Oct. 04, 2014USD ($)
Discontinued operations
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Reserve for future costs associated with discontinued operations	$ 7,385	$ 5,397
Discontinued operations | Accrued liabilities
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Reserve for future costs associated with discontinued operations		$ 5,400
2b bebe
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Number of stores closed | Store	18

DISCONTINUED OPERATIONS - Sched

DISCONTINUED OPERATIONS - Schedule of Discontinued Operations Reserve Roll Forward (Details) - Discontinued operations $ in Thousands	3 Months Ended
	Oct. 04, 2014USD ($)
Restructuring Reserve [Roll Forward]
Restructuring reserve beginning balance	$ 7,385
Costs incurred in fiscal 2015 from July 5, 2014 through October 4, 2014	1,831
Cash payments, markdowns or adjustments applied	(3,819)
Restructuring reserve ending balance	5,397
Lease Obligations
Restructuring Reserve [Roll Forward]
Restructuring reserve beginning balance	6,385
Costs incurred in fiscal 2015 from July 5, 2014 through October 4, 2014	1,116
Cash payments, markdowns or adjustments applied	(2,675)
Restructuring reserve ending balance	4,826
Other Costs
Restructuring Reserve [Roll Forward]
Restructuring reserve beginning balance	1,000
Costs incurred in fiscal 2015 from July 5, 2014 through October 4, 2014	715
Cash payments, markdowns or adjustments applied	(1,144)
Restructuring reserve ending balance	$ 571

INVESTMENTS - Narrative (Detail

INVESTMENTS - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended
	Oct. 03, 2015	Jul. 04, 2015	Oct. 04, 2014
Schedule of Available-for-sale Securities [Line Items]
Short term available for sale securities	$ 15,454	$ 17,880	$ 17,841
Long term available for sale securities	5,290	$ 5,241	$ 5,403
Temporary impairment charge	$ 3,700
Investment maturity date range year start	2,031
Investments maturity date range year end	2,033
Par value of action rate securities	$ 6,600
Standard & Poor's, A Rating
Schedule of Available-for-sale Securities [Line Items]
Company's ARS portfolio percentage	22.00%
Standard & Poor's, CCC Rating
Schedule of Available-for-sale Securities [Line Items]
Company's ARS portfolio percentage	78.00%
Long Term Auction Rate Securities Gross
Schedule of Available-for-sale Securities [Line Items]
Long term available for sale securities	$ 9,000

INVESTMENTS - Summary of Availa

INVESTMENTS - Summary of Available for Sale Securities (Details) - USD ($) $ in Thousands	Oct. 03, 2015	Jul. 04, 2015	Oct. 04, 2014
Short term | Short term certificates of deposit
Schedule of Available-for-sale Securities [Line Items]
Cost	$ 15,454	$ 17,880	$ 17,841
Unrealized Losses Less Than 12 Months	0	0	0
Unrealized Losses 12 Months or Greater	0	0	0
Estimated Fair Value	15,454	17,880	17,841
Long term | Long term auction rate securities
Schedule of Available-for-sale Securities [Line Items]
Cost	9,000	9,000	9,000
Unrealized Losses Less Than 12 Months	0	0	0
Unrealized Losses 12 Months or Greater	3,710	3,759	3,597
Estimated Fair Value	$ 5,290	$ 5,241	$ 5,403

FAIR VALUE MEASUREMENTS - Narra

FAIR VALUE MEASUREMENTS - Narrative (Details) - USD ($) $ in Millions	3 Months Ended
	Oct. 03, 2015	Oct. 04, 2014
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Weighted average interest rate	0.20%
Carrying amount of the non-current available for sale securities	$ 9
Fair value of available-for-sale securities	5.3
Impairment charges recorded during the period	$ 1.5	$ 0
Weighted average cost of capital	11.00%
Percentage of undiscounted cash flows exceeded net carrying value	52.00%	280.00%
Minimum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Discounted cash flow model, estimated timing	10 years
Annual revenue growth rates	(4.00%)
Maximum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Discounted cash flow model, estimated timing	14 years
Annual revenue growth rates	5.00%
LIBOR
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Discounted cash flow model, estimated interest rate	5.64%

FAIR VALUE MEASUREMENTS - Summa

FAIR VALUE MEASUREMENTS - Summary of Items Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands	Oct. 03, 2015	Oct. 04, 2014
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Non-current available for sale securities	$ 5,300
Fair value, measurements, recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	426	$ 36,400
Current available for sale securities	15,454	17,841
Non-current available for sale securities	5,290	5,403
Total	21,170	59,644
Fair value, measurements, recurring | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	426	36,400
Current available for sale securities	0	0
Non-current available for sale securities	0	0
Total	426	36,400
Fair value, measurements, recurring | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	0	0
Current available for sale securities	15,454	17,841
Non-current available for sale securities	0	0
Total	15,454	17,841
Fair value, measurements, recurring | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	0	0
Current available for sale securities	0	0
Non-current available for sale securities	5,290	5,403
Total	$ 5,290	$ 5,403

FAIR VALUE MEASUREMENTS - Sched

FAIR VALUE MEASUREMENTS - Schedule of Assets Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs (Details) $ in Thousands	3 Months Ended
	Oct. 03, 2015USD ($)
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance at beginning of period	$ 5,241
Total gains or (losses) (realized or unrealized)
Included in net loss	0
Included in accumulated other comprehensive income	49
Balance at end of period	$ 5,290

FAIR VALUE MEASUREMENTS - Sum33

FAIR VALUE MEASUREMENTS - Summary of Considerations of At-Risk Assets (Details) $ in Millions	3 Months Ended
	Oct. 03, 2015USD ($)Store	Oct. 04, 2014USD ($)Store
Fair Value Disclosures [Abstract]
Number of stores identified as at risk and evaluated for impairment | Store	11	18
Number of stores identified as at risk, but not impaired | Store	(5)	0
Number of stores identified as at risk with impairment | Store	6	18
Total carrying amount of stores identified as at risk prior to any impairment charges taken	$ 2.3	$ 2.2
Total carrying amount of stores identified as at risk, but not impaired	(0.8)	(2.2)
Total carrying amount of stores identified for impairment	1.5	0
Impairment charges recorded during the period	$ 1.5	$ 0

INVENTORIES - Summary of Invent

INVENTORIES - Summary of Inventories (Details) - USD ($) $ in Thousands	Oct. 03, 2015	Jul. 04, 2015	Oct. 04, 2014
Inventory Disclosure [Abstract]
Raw materials	$ 773	$ 548	$ 1,060
Merchandise available for sale	34,158	30,769	33,687
Inventories, net	$ 34,931	$ 31,317	$ 34,747

CREDIT FACILITIES - Narrative (

CREDIT FACILITIES - Narrative (Details) - Stand-by letter of credit $ in Millions	Oct. 03, 2015USD ($)letter_of_credit	May. 14, 2014letter_of_credit
Line of Credit Facility [Line Items]
Number of letters of credit | letter_of_credit	2	1
Line of credit facility, amount outstanding	$ 3.8

EARNINGS PER SHARE - Narrative

EARNINGS PER SHARE - Narrative (Details) - shares	3 Months Ended
	Oct. 03, 2015	Oct. 04, 2014
Common stock
Schedule of Computation of Basic and Diluted Earnings Per Common Share [Line Items]
Antidilutive shares outstanding (in shares)	3,799,152	4,908,530

STOCK BASED COMPENSATION - Summ

STOCK BASED COMPENSATION - Summary of Stock Based Compensation Expense Recognized Under Stock Plan (Details) - USD ($) $ in Thousands	3 Months Ended
	Oct. 03, 2015	Oct. 04, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock based compensation expense	$ 725	$ 749
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock based compensation expense	336	433
Nonvested stock awards/units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock based compensation expense	$ 389	$ 316

STOCK BASED COMPENSATION - Narr

STOCK BASED COMPENSATION - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended
	Oct. 03, 2015	Oct. 04, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average fair value of stock options	$ 0	$ 0.84
Nonvested stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost, nonvested stock options	$ 0.7
Expected to be recognized over a weighted average period	1 year 9 months 18 days
Nonvested stock awards/units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost, nonvested stock awards/units	$ 0.6
Expected to be recognized over a weighted average period	2 years 1 month 6 days