BEBE’s Taking an Axe to Costs

Although there have been a few hiccups along the way, like the voluntary delisting from NASDAQ to OTC in December and the sale of its headquarters falling through, BEBE is largely living up to expectations.

As I have discussed previously, the company is moving to a licensing-only model. Since it will no longer need designers, warehouses, and distribution centers, costs should become immaterial. There’s been some debate around how low costs can go, since the company is not great around providing detailed information. Now, it appears we finally have a rough idea, and it’s better than I expected.
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