Bebe 3rd-quarter profit falls 35 percent on sales drop

For the quarter ended April 5, net income fell to $8.3 million, or 9 cents per share, from $12.9 million, or 14 cents per share, in the prior-year quarter.

Excluding an impairment charge for three underperforming stores, the company earned 10 cents per share.

Analysts polled by Thomson Financial expected profit of 9 cents per share.

Revenue fell 2 percent to $151.7 million from $154.4 million in the third quarter of 2007. Analysts predicted revenue of $149.9 million.

The company said an additional week of sales in 2007 boosted that quarter's revenue by about $10 million. Excluding that week, revenue rose 5 percent.

Same-store sales, or sales at stores open at least a year, fell 7.6 percent in the quarter on a same-week basis.

Same-store sales is a key indicator of retailer performance since it measures growth at existing stores rather than newly opened ones.

Bebe shares rose 52 cents, or 5 percent, to $10.87 in electronic after-hours trading. During regular trading, shares climbed 36 cents, or 3.6 percent, to close at $10.35. They have ranged from $9.01 to $18.42 over the past year.