Shares of Bebe Stores (BEBE) are tanking after the women's apparel and accessories retailer reported its quarterly earnings in a regulatory filing last night.

WHAT'S NEW: Bebe, which announced in late April that it will close all its stores by the end of May, reported a loss of $6.41 per share on revenue of $65.7M for the three months ended April 1. For the same quarter last year, bebe reported a loss of $3.74 per share on revenue of $79.9M. According to the filing, the retailer has hired a liquidation firm to assist with the sale of the inventory and store fixtures. The company will terminate the employment of its store personnel upon closure. Additionally, bebe has hired a real estate consultant to negotiate with its landlords to terminate existing leases and the company will have to make payments in order to close all of its retail stores. Bebe anticipates the payments will be in the range of approximately $60M-$65M.

REDUCED STORE TRAFFIC: The decrease in net sales was primarily due to the effects of negative comparable store sales in the third quarter of fiscal 2017 compared with the same period in the prior year coupled with a reduction in total number of stores. Comparable store sales decreased 13.2% compared with a 10.7% decrease in the same period in the prior year. According to bebe, the decrease in comparable store sales was primarily the result of reduced store traffic.

MALL-DEPENDENCY: Bebe, like many other mall-dependent retailers, has been impacted by the slowdown in general mall traffic of late. "Many of our stores are located in shopping malls and other retail centers that benefit from the ability of "anchor" retail tenants, generally large department stores, and other attractions, to generate sufficient levels of consumer traffic in the vicinity of our stores. Anchor stores in malls like Macy's (M), J.C. Penney (JCP) and Sears Holdings (SHLD) have struugled over the last few years as consumer trends like e-commerce, notably "the Amazon (AMZN) Effect," have curtailed their brick and mortar sales. Nearly every major department store, including the aforementioned "anchor stores," have collectively closed many stores over the last year. The issues facing mall-based retailers were reiterated by Urban Outfitters (URBN) CEO Richard Hayne, after the company reported a weak first quarter on Tuesday. Urban said total Retail segment comps sales registered a "disappointing" 3% decline, well below plan, which drove increased promotional activity and "more margin pressure than we had anticipated." As in previous quarters, the company said it saw extreme variability in results by channel. Hayne added that "The sales shortfall in Q1 was wholly attributable to weaker-than-expected store channel performance in North America where all three of its brands encountered sluggish customer traffic and sales. This issue is impacting virtually all U.S. brick-and-mortar retailers. There are simply too many stores and too many malls in North America. We expect to see more closures and brands disappear until a healthier balance is reached."

PRICE ACTION: Shares of Bebe are down 26.3% to $3.86 in afternoon trading.

OTHER MALL BASED RETAILERS: Other smaller retailers that have a significant mall presence are also outpacing the broader market sell-off today including American Eagle Outfitters (AEO) Abercrombie & Fitch (ANF), The Gap (GPS) Urban Outfitters, Zumiez (ZUMZ), The Children's Place (PLCE) and The Buckle (BKE).