Ahead of the Bell: Bebe edges higher premarket on 3Q earns

Bebe shares added 40 cents, or 3.7 percent, to $10.75, having closed Thursday at $10.35.

In a note to investors, Cowen and Co. analyst Lauren Cooks Levitan reiterated her "Outperform" rating on the Brisbane, Calif., company in a note to investors, saying she is encouraged by its commitment to better profit margins through fewer promotions and lower inventories.

Levitan cut her full-year outlook for Bebe by a nickel to 70 cents per share, citing the company's lower-than-expected guidance. Analyst polled by Thomson Financial expect 71 cents per share.

On Thursday, Bebe said it expects a fourth-quarter profit of between 15 cents and 19 cents per share, with Wall Street calling for 19 cents per share.

Separately, Wachovia Capital Markets analyst Walther Rhoads also reiterated an "Outperform" rating on Bebe, calling it a "solid brand" with room for better margins once business improves.

"Bebe has created a niche for itself in a very crowded mall and has built a strong brand with an extremely loyal customer. The stores are some of the most profitable in the mall," Rhoads said.

Shares of Bebe have lost 44 percent from an annual high of $18.42 last May. The stock gained 36 cents, or 3.6 percent to close at $10.35 on Thursday.