Bebe Comp Sales Soar

Commenting during the company's quarterly conference call Thursday, CEO Greg Scott attributed the strong financial performance to a number of factors, among them increased sales of jewelry, handbags and other accessories, as well as a return of customers over the age of 30. "Our customer over the age of 30 is back, and she's spending money," Scott said. Bebe markets primarily to women ages 21 to 35, and its typical customer, in the company's words, is "a hip, sexy, and sophisticated, body-conscious woman who takes pride in her appearance."

Bebe has said in recent months that it expects to open 20 new locations in 2005, which will include 11 Bebe stores and nine Bebe Sport locations, but analysts during Thursday's conference call asked if the company might accelerate that schedule in 2005 and 2006 light of its strong performance. "We do not have board approval yet, but on the basis of a very successful year, we are looking to increase the store openings from the 20," Scott said. He noted that the company, which operates primarily in regional shopping centers and in freestanding street locations, is also looking at some different sizes and configurations for its formats.Bebe has generally been relatively conservative in its expansion, opening 20 new stores in 2004, which included seven Bebe locations and 13 Bebe Sport stores. It is now operating 205 sites, 25 of which are Bebe Sport locations, and it also has 18 outlet stores.