SAN FRANCISCO, July 30 /PRNewswire/ -- The following is being issued by
BancBoston Robertson Stephens, a member of the National Association of
Securities Dealers, CRD number 41271:
BancBoston Robertson Stephens managing director and senior specialty
retailing analyst Janet Joseph Kloppenburg today reiterated her Buy rating on
Bebe Stores, Inc. (Nasdaq: BEBE). The company, headquartered in San
Francisco, Calif., is a well-established specialty-retail-brand targeting
contemporary, fashion-forward women ages 18 to 35.
"We are reiterating our Buy rating on Bebe, following the company's
announcement of strong-fourth-quarter 1999 earnings," said Kloppenburg. "The
company reported a 57 percent rise in net-earnings, with an earnings-per-share
of $0.30, versus $0.20 in the same period last year, well ahead of our
$0.27 expectation.
"In our view, the upside in the quarter was driven by significantly better
SG&A leverage of 290 basis points, leading to a strong operating-margin-
increase of 150 basis points to 22 percent, versus 20.5 percent last year and
well above our 20.3 percent estimate.
"To reflect the upside in the quarter, we are raising our fiscal 2000
earnings-per-share estimate from $1.23 to $1.26, versus $1.11 for fiscal
1999," said Kloppenburg. "In addition, we are establishing a fiscal 2001
estimate of $1.55, representing 23 percent earnings-per-share growth from our
fiscal 1999 estimate."
"Separately, we believe current business trends continue to be strong,
with July comp store sales tracking up in the mid-teen range, nicely ahead of
our 10 percent estimate," said Kloppenburg. "With the stock currently trading
at 19.8 times our calendar 2000 earnings-per-share estimate, we believe the
recent sell-off has been unwarranted given Bebe's exceptional
earnings-growth-momentum that has surpassed 40 percent for the past
11 quarters."
Clients interested in receiving more information should contact their
salesperson at 415-781-9700.
BancBoston Robertson Stephens is a leading international investment
banking firm focused on growth companies. The firm's 55 equity and high yield
research analysts cover more than 600 companies. Additional information is
available upon request.
The information contained herein is not a complete analysis of every
material fact respecting any company, industry or security. Although opinions
and estimates expressed herein reflect the current judgment of BancBoston
Robertson Stephens, the information upon which such opinions and estimates are
based is not necessarily updated on a regular basis; when it is, the date of
the change in estimate will be noted. In addition, opinions and estimates are
subject to change without notice. This Report contains forward-looking
statements, which involve risks and uncertainties. Actual results may differ
significantly from the results described in the forward-looking statements.
Factors that might cause such a difference include, but are not limited to,
those discussed in "Investment Risks." BancBoston Robertson Stephens from
time to time performs corporate finance or other services for some companies
described herein and may occasionally possess material, nonpublic information
regarding such companies. This information is not used in the preparation of
the opinions and estimates herein. While the information contained in this
Report and the opinions contained herein are based on sources believed to be
reliable, BancBoston Robertson Stephens has not independently verified the
facts, assumptions and estimates contained in this Report. Accordingly, no
representation or warranty, expressed or implied, is made as to, and no
reliance should be placed on, the fairness, accuracy, completeness or
correctness of the information and opinions contained in this Report.
BancBoston Robertson Stephens, its managing directors, its affiliates, and/or
its employees may have an interest in the securities of the issue(s) described
and may make purchases or sales while this report is in circulation.
BancBoston Robertson Stephens International Ltd. is regulated by the
Securities and Futures Authority in the United Kingdom. This publication is
not meant for private customers. The securities discussed herein are not FDIC
insured, are not deposits or other obligations or guarantees of BankBoston
N.A., and are subject to investment risk, including possible loss of any
principal amount invested.
SOURCE BancBoston Robertson Stephens
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