Exhibit 99.1

Contact: John Kyees
               Chief Financial Officer
               bebe stores, inc.
               (415) 715-3900

bebe stores, inc. Reports First Quarter Earnings;
EPS Increases 15% to $0.23 Per Share

BRISBANE, CALIF. – October 23, 2003 – bebe stores, inc. (Nasdaq:BEBE) today announced financial results for the first quarter of fiscal 2004 ended September 30, 2003.

Net sales for the first quarter of fiscal 2004 were $83.6 million, up 13.3% from $73.8 million reported for the first quarter a year ago. As previously reported, same store sales for the quarter increased by 6.8% compared to a decrease of 10.3% in the prior year.

Gross margin as a percentage of net sales increased to 46.1% in the first quarter of fiscal 2004, compared to 45.6% in the first quarter of fiscal 2003. The increase in gross margin as a percentage of net sales from the prior year of 0.5% was primarily the result of favorable occupancy leverage offset by slightly lower merchandise margins.

Operating expenses for the first quarter of fiscal 2004 were $29.3 million, or 35.1% of net sales, compared to $26.0 million, or 35.2% of net sales for the same period of the prior year. The increase in operating expenses for the first quarter of fiscal 2004 compared to the same period of the prior year was primarily due to higher compensation, advertising and depreciation expenses.

Operating income for the first quarter of fiscal 2004 increased 19.5% to $9.2 million, compared to $7.7 million for the same period a year ago. Net earnings for the first quarter increased 17.6% to $6.0 million, compared to $5.1 million for the same period a year ago. Diluted earnings per share for the first quarter were $0.23 versus $0.20 in the same period of fiscal 2003.

The Company anticipates comparable store sales for the second quarter to be positive low to mid single digits and earnings per share to be in the range of $0.47 to $0.50 per share.

bebe stores, inc. will host a conference call on Thursday, October 23, 2003 at 9:30 A.M. Pacific Time to discuss first quarter results. Interested parties are invited to listen to the conference by calling (800) 283-1693. A replay of the call will be available for approximately one week by calling (888) 266-2081 and using the passcode “2323". A link to the audio replay will be available on our web site at www.bebe.com following the conference call.

bebe designs, develops and produces a distinctive line of contemporary women’s apparel and accessories, which it markets under the bebe and BEBE SPORT brand names. bebe currently operates 184 stores in the United States, Canada and an online store at www.bebe.com.

The statements in this news release, other than the historical financial 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 and the company’s future results of operations could differ materially from historical results or current expectations. 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, 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. Future economic and industry trends that could potentially impact revenues and profitability are difficult to predict.