Dive Brief:

• Bebe reported an 8% increase in its Q2 same-store sales and a 14% profit increase that surprised many.

• CEO Jim Wiggett attributed the successful quarter to changes in merchandising.

• In August, Ryan Drexler, president of private equity firm Consac LLC, wrote a letter saying the women’s apparel retailer had lost its way under president and controlling investor Manny Mashouf, questioning the relationship between the retailer and a company led by Mashouf, and urging a possible sale.

Dive Insight:

In addition to the improvements in merchandising cited by Wigget, the retailer has also improved its omni-channel strategy by providing in-store iPads so customers can order items they don’t find immediately, among other things. Bebe’s quarterly report is a surprise bright spot in a fairly dire picture for many mall-based apparel stores.