board meeting financial materials fy'13 year-end highlights

Strictly Private and Confidential

MANAGEMENT PRESENTATION

June 2015

OVERVIEW

• Established in1976, bebe is an iconic

contemporary accessible brand with

strong brand equity and a distinct offering

of apparel and accessories

• Designs, develops and produces

contemporary women’s apparel and

accessories under the bebe, BEBE SPORT

names

• The Company is currently executing a

turnaround plan and implementing a

number of merchandising and

operational initiatives

• Operates approximately165 bebe retail

stores and 36 bebe outlet stores in the

U.S., U.S. Virgin Islands, Puerto Rico and

Canada. Company is in advanced

negotiations with landlords to maintain

store locations and rent

• Runs e-commerce business @bebe.com

• Distributes and sells bebe branded

product through licensees in

approximately 20 countries

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INVESTMENT HIGHLIGHTS

3

Solid and scalable retail store operations, technology and supply chain

Premier store locations primarily in A and B malls

Upgraded management team led by highly experienced executives and

strong design and merchandising talent

Turnaround strategy underway with tangible progress

Distinctly positioned with merchandise designed to suit the lifestyle of a

confident and feminine woman

Focus on growth strategies in international, domestic wholesale, outlets and

e-commerce

Historically high margin and bottom-line accretive vertical apparel business in the process of turnaround and with ample future growth potential

bebe skews trendier and more fashion-forward than most of its competitors, and strives to provide value

BRAND POSITIONING

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• Wears her confidence – likes to be noticed and instills confidence in the woman who wears it

• Lives a “24/7” lifestyle, constantly juggling work and her social life

• Embodies power and glamour, is ageless and stands out from the crowd

• Considers herself a trendsetter and puts her own spin on the latest fashions

• Prefers clothing that accentuates her curves; bebe is sexy

• Looks for value and uniqueness when she shops

• Diverse customer demographics including fast growing ethnicities

THE bebe WOMAN

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Name & Title Year Joined bebe Prior Experience Years in

Industry

Jim Wiggett – CEO 2014 Founder of The Jackson Hole Group, prior

retail experience in Macys, Duty Free and

managing multiple brands under LVMH

40+

Liyuan Woo – CFO 2010 M&A and financial advisory to private equity

and strategic corporations at Deloitte 17+

Brigitte Bogart –EVP, Design Re-joined 2013 Design director during bebe peak years, prior

entrepreneur and experience with many

brands such as Laundry by Shelli Segal and

Guess etc.

25+

Mary Jimenez –SVP, GMM Re-joined 2014 Head of bbsp during bebe peak years, prior

head of merchandising at Marciano, a division

of Guess and previously worked for LVMH

25+

Denise Cox –SVP , Production 2009 SVP at Haggar Clothing Co.; production and

sourcing positions at VF Corporation 25+

Susan Powers – SVP, Stores 2007 VP of Store Operations at Chico's/White

House Black Market, Wet Seal and BCBG 25+

Erik Lautier – EVP, Chief Digital Officer

2014 Head of eCommerce at Lacoste and Edun

(LVMH); significant experience in startups and

digital strategy consulting

15+

Richard Pierson – SVP, International 2010 VP of International at Tommy Hilfiger and

Guess prior to joining bebe with 17 years of

international expansion experience

23+

EXPERIENCED MANAGEMENT TEAM

Elevated and empowered executive team with upgraded design and merchandising front-end leadership

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STRONG BRAND HERITAGE WITH AMPLE UPSIDE

For over 40 years, bebe has been a well known value oriented fashion brand. Brand messaging has been inconsistent, which confirms upside potential

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Strategic Initiatives

SIX PRONGED TURNAROUND STRATEGY

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1. 2.

3.

Increase product distinction with a contemporary,

accessible, fashion merchandised offering

designed to suit the lifestyle of this confident,

sexy, feminine, and sophisticated woman

Align marketing campaign from

traditional to new media, focused on

messaging that speaks to the bebe

woman

Expansion of branded product into

other retail operations

4.

6.

5.

Product Distinction Brand messaging

Domestic Wholesale

Outlets International

Long term growth

Refine outlets so product and messaging better align with the bebe brand

Maintain international presence through company turnaround

Strategically plan growth initiatives as we learn from our US successes

ROI-based investment for sustained

long-term growth

PRODUCT DISTINCTION

• Continue to revamp the design, merchandising, production and marketing processes to ensure consistent delivery of a cohesive fashion assortment throughout 8 seasons representing strong collections in multiple lifestyles that reflect our customer

– Distinct offering falls into lifestyle categories – Maintain core competency in dresses and party while building out

the tops assortment and accessories

– Focus on outfits, layers, and special occasion. Expanding her special occasion offerings will improve AUR, UPT and ADS

– Continue to build on the success of accessories and seeking other

incremental opportunities

• Merchandise calendar assumes 6-weeks, 8-seasons design with collaboration from merchandising and marketing on outfitting to ensure a coherent offering, consistent messaging, and cost savings

– Initiated the full roll out of localized lifestyle outfitting ― Consistency in planning, designing, merchandising, and floor

presentation

• Shift from IMU focused pricing to quality and value oriented pricing

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BRAND MESSAGING

• Redefining brand message to reflect the essence of the bebe woman across all channels

• Building brand relevance in social media through Facebook, Instagram and Pinterest

― Act as a fashion resource

― Starting a social impact campaign

• Upgrading loyalty and CRM platforms which segments customers into distinct groups with targeted approach in product and messaging

― Using an email service that enables one-to-one cross-channel marketing

― Outlet CRM:

Reconnect with outlet marketing team

Align messaging to ensure consistency with bebe brand

• Launched standalone iPad/iPhone version of digital catalog

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DOMESTIC WHOLESALE

• Opportunity to introduce the brand to customer base

with product that is distinct; reinforces the DNA of the brand, and supports the overall perceptions of the brand

• Includes multiple merchandise categories such as

handbags, shoes, intimates, and accessories etc.

• bebe product will be featured both in branded shop-in-shops, as well as within wholesale partners'

presentations

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OUTLETS

• Rebranded all stores as ‘bebe’ to reinforce the single brand focus

― Eliminated 2b product and optimized the mix of bebe MFO, logo. and clearance products transferred from main stores

• Maintain the casual offering successes under the bebe label

― Maximize the made for outlet opportunity with brand approved bebe product that increases customer awareness while delivering incremental revenue

― Creates an opening price-point for the bebe line, which leads into mid-priced product in bebe stores and the higher range of

product in key lines

• Strategically incorporate non-apparel product into outlets

― Goal of 20% store penetration by 2016

• Increase top line and bottom line while retaining brand equity

and integrity

― Increase Average AUR, IMU% and GM%

― Pop-up locations to eliminate MDs

• Goal is to add 38 new outlets by FY 2018 for a total outlet

portfolio of approximately 70 outlet locations

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INTERNATIONAL GROWTH

• The bebe brand has found success internationally by serving a sophisticated, branded customer, and offering an aspirational product

• Enhanced product assortments. Branding efforts are receiving a positive response

from the consumer

• Currently in 20 countries with 10 partnerships and working to build store count through our brand transition

― Position our partners for future success when brand has strategy and positioning back in alignment

― Monitor US selling and successes and then build on those internationally

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Strictly Private and Confidential

Financial Highlights

FY14 FY13 FY12

July 5, 2014 July 3, 2013 June 30, 2012

Net Sales $425.1 $463.2 $519.8

Gross Margin 32.5% 33.3% 40.2%

SG&A as % of sales 46.5% 42.6% 36.0%

Operating Income (Loss) ($59.7) ($43.0) $21.8

Income (Loss) from Continuing Operations ($59.2) ($69.1) $13.2

EPS from Continuing Operations ($0.75) ($0.84) $0.16

EBITDA after one-time items ($28.7) ($7.2) $41.8

Stores at end of period 207 242 252

Actual to 40% Margin Delta $31.9 $31.1

FISCAL YEAR FINANCIAL HIGHLIGHTS

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• Margin drain, significant SG&A increase coupled with sales productivity issues were main factors for a disappointing FY13 & FY14

• FY15 is a reset year for margin level and store counts

From Continuing Operations

April, 3 2015

(In millions) (unaudited)

April 5, 2014

(In millions)

Net Sales $323.7 $321.5

Gross Margin

108.9

106.1

SG&A

129.0

141.7

Net Loss (Non-GAAP) $18.4 $32.5

Net Losses Per Share (Non-GAAP) 0.24 0.41

Normalized EBITDA ($6.4) ($17.9)

9-MONTHS FY15 INCOME STATEMENT SUMMARY

• Updated guidance of ‘low-single digit sales comp’ and ‘low-single digit loss per share range’

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IMAGES EXPLAIN THE NUMBERS - OVERTLY SEXY FY14 & Q1 FY15

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INTRODUCTION OF THE FALL COLLECTION – WEAR YOUR CONFIDENCE!

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FOLLOWED BY HOLIDAY PRESENTATION – NO LABEL REQUIRED

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FOLLOWED BY SPRING COLLECTION – MORE CASUAL LIFESTYLES

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bebe LIFESTYLES - OUTFITTING FOR EVERY ASPECT OF HER DAY

SPECIAL

OCCASSION

DRESSY

CASUAL

BUSINESS

CHIC

LOGO BBSP PARTY

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BUSINESS

CHIC

20%

LOGO

10%

BBSP

2%

Core

Opening

High

Price

End Use

Day Night

bebe LIFESTYLES MAP

• Largest offering in the Dressy Casual lifestyle - versatile pieces that can be worn day to night

• Protecting our heritage of Party and Business Chic at higher price points

DRESSY CASUAL

40%

PARTY

20%

SP.

OCC.

3%

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THE NEW EXCITEMENT IN DRESSY CASUAL OFFERINGS FALL 2015

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THE NEW EXCITEMENT IN DRESSY CASUAL OFFERINGS FALL 2015

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THE NEW SPECIAL OCCASION OFFERINGS FALL 2015

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BUSINESS CHIC LIFESTYLE OFFERINGS FALL 2015

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• bebe is currently positioned in 170 of the 312 defined A and B volume malls

• Elevate the bebe brand and shopping

experience through windows and in store merchandising

• New store concept currently rolled out to 8 bebe stores. Comparable performance indicates 5-8% margin gain and increase

in sales per SF

• Plan to roll out the concept to all new and relocated stores

• Strategically pre-plan floor sets, fixture and

marketing needs by partnering with

merchandising, marketing, and design teams • Improve window display and in-store

marketing in partnership with marketing team

• Non-apparel table testing successful with

planned 50% rollout by March 2015

NEW STORE CONCEPT DRIVES SALES AND MARGIN

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NEW STORE CONCEPT – INTRODUCTION SUMMER 2014

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April, 4 2015


April 5, 2014


Cash and Investments $76.9 $139.0

Merchandise Inventories

32.6

31.9

Property and Equipment, net

93.9

96.1

Total Assets $225.2 $292.1

Total Liabilities 69.1 72.8

Shareholders’ Equity $156.1 $219.3

BALANCE SHEET AND CASH FLOW SUMMARY

• Planned CAPEX of $18M for FY15 and directionally lower for FY16 • Planned Dividend payments of $0 for Q3 and Q4 FY15

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SHORT TERM TURNAROUND & LONG TERM GROWTH

• Driving increased store productivity through focused merchandising and marketing initiatives as well as

new store concept rollout and visual presentation to ensure global-level leverage

• Focus on high quality sales through improved product offering, better managed promotions, and

disciplined approach to inventory management

• Managing and planning for investments in inventory, SG&A, and CapEx

Managing inventory in line with test and react strategy and ensure <30% fashion risk buys

Headcount reduction and restructuring steps took place last July, coupled with a $10 million marketing spend reduction for fiscal 2015 ($20M for FY15 and FY16)

Continued profitable investments in e-commerce and CRM to enhance the relationship with customers and drive growth (Conversion focused FY15 / traffic & conversion focused FY16)

Invest in less capital-intensive and revenue-enhancing areas in CapEx to leverage our new store concept

• Continue to monitor and right-size the unproductive bebe store portfolio while growing e-comm

• Continue to expand on operational margin accretive channels

Outlets in store counts and offering

International wholesale expansion

Domestic wholesale opportunities

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FORWARD LOOKING STATEMENTS

Certain statements in this presentation are "forward-looking statements" made pursuant to the safe-

harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking

statements reflect the Company's current expectations or beliefs concerning future events and are

subject to various risks and uncertainties that may cause actual results to differ materially from those

that we expected. The statements in this presentation, other than historical information, contain

forward-looking statements that involve risks and uncertainties that could cause actual results to differ

from anticipated results. Wherever used, the words “expect,” “plan,” “anticipate,” “believe” and similar

expressions identify forward-looking statements. Any such forward-looking statements are subject to

risks and uncertainties. Some of these risks include, without limitation, miscalculation of the demand for

our products, effective management of our growth, decline in comparable store sales performance,

ongoing competitive pressures in the apparel industry, changes in the level of consumer spending or

preferences in apparel, loss of key personnel, difficulties in manufacturing, disruption of supply, adverse

economic conditions, and/or other factors that may be described in the Company's annual report on

Form 10-K and/or other filings with the Securities and Exchange Commission. We undertake no

obligation to publicly update or revise any forward-looking statement.

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board meeting financial materials fy'13 year-end highlights

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