Brisbane, Calif. Bebe Stores has posted a smaller second-quarter profit than the previous year on slower sales during the holiday season. However, it also reported that its profit margins grew on lower markdowns and cut costs.
The company said it earned $2.4 million, compared with earnings of $6.8 million in the second quarter last year. Sales were $141.5 million in the quarter ended Jan. 2, down 22% from $181.9 million in the same quarter a year ago.
Earlier this month, the company said same-store sales fell 22.2% in the second quarter.
Still, margins grew 0.6% to 39.2% as the company used lower markdowns and reported lower costs related to inventory and damages.