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Bare Escentuals, Inc. (Nasdaq:BARE) today announced financial results for the first fiscal quarter ended April 1, 2007.

Net sales for the first quarter of fiscal 2007 were $115.6 million, an increase of approximately 29% from $89.9 million recorded in the same period last year. Net income for the first quarter of fiscal 2007 was $20.4 million, or $0.22 per diluted share on approximately 92.6 million shares outstanding, compared to $14.5 million, or $0.20 per diluted share on approximately 71.9 million shares outstanding, in the first quarter of fiscal 2006. Operating income for the first quarter of fiscal 2007 was $40.4 million, an increase of approximately 20% from $33.6 million in the same period last year.

"The first quarter of 2007 was a very good quarter for the company and a continuation of the strong growth we delivered in 2006," said Leslie Blodgett, Chief Executive Officer. "While our sales and earnings speak to our outstanding performance, it is the strength of our brand and dedication of our customers that genuinely reflect our success. As we expand distribution channels worldwide, we remain committed to providing the highest quality bareMinerals products and customer service, as well as maintaining our brand excellence and industry leadership."

Guidance

Based on stronger-than-expected first quarter results, Bare Escentuals expects fiscal 2007 diluted earnings per share to be in the range of $0.89 to $0.94 on approximately 93.2 million shares outstanding. This change represents an increase of $0.05 over the prior earnings guidance. The Company continues to anticipate that earnings will be weighted toward the second half of fiscal 2007.

Conference Call

Bare Escentuals, Inc. will host a conference call today, May 2, 2007 at 1:30 p.m. Pacific (4:30 p.m. Eastern). The call, which will be hosted by Leslie Blodgett, Chief Executive Officer; Diane Miles, President; and Myles McCormick, Chief Financial Officer and Chief Operations Officer, will be broadcast live over the Internet and accessible through the Investor Relations section of the Company's website at http://ir.bareescentuals.com. The webcast will also be archived online within one hour of the completion of the conference call and available at the Investor Relations section of the Company's website at http://ir.bareescentuals.com.

About Bare Escentuals, Inc.

Bare Escentuals, Inc. is one of the fastest growing prestige cosmetic companies in the United States and a leader in mineral-based cosmetics. The Company utilizes a distinctive marketing strategy and multi-channel distribution model to develop, market and sell cosmetics, skin care, and body care products under its bareMinerals, RareMinerals and namesake Bare Escentuals brands, and professional skin care products under its md formulations brand through infomercials, home shopping television, specialty beauty retailers, company-owned boutiques, spas and salons, and online shopping.

Safe Harbor Statement

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 that involve risks, uncertainties and assumptions, such as statements regarding our plans, objectives and future operations and estimates of our financial results and capital expenditures for future periods. Our actual results and the timing of events could differ materially from those anticipated in these forward-looking statements as a result of several factors. Factors that could affect future performance include, but are not limited to our dependence on sales of our mineral-based foundation; our dependence on significant customers with whom we do not have long-term purchase commitments; the highly competitive nature of the beauty industry, and the adverse consequences if we are unable to compete effectively; the possibility that we might not manage our growth effectively or sustain our growth or profitability; the possibility that we might not be able to retain key executives and other personnel and recruit additional executives and personnel; the possibility that we might not be able to open and operate new boutiques successfully; our dependence on our suppliers to produce and deliver our products in a timely and cost-effective manner; the possibility that our media spending might not result in increased net sales or generate the levels of product and brand name awareness we desire; the possibility that we may be unable to repay or refinance our indebtedness, which was $339.3 million as of December 31, 2006; changes in general economic or market conditions; and other risk factors detailed in our Annual Report on Form 10-K for the year ended December 31, 2006, which is available at the SEC's website at www.sec.gov. You are urged to consider these factors carefully in evaluating the forward-looking statements herein and are cautioned not to place undue reliance on such forward-looking statements, which are qualified in their entirety by this cautionary statement. The forward-looking statements made herein speak only as of the date of this press release and the company undertakes no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances.

BARE ESCENTUALS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except percentages and per share data)

Three months ended

April 1, 2007

April 2, 2006

Sales, net

$115,613 

100.0%

$89,915 

100.0%

Cost of goods sold

33,450 

28.9 

25,196 

28.0 

Gross profit

82,163 

71.1 

64,719 

72.0 

Expenses:

Selling, general and administrative

39,185 

33.9 

29,684 

33.0 

Depreciation and amortization

940 

0.8 

465 

0.5 

Stock-based compensation

1,611 

1.4 

944 

1.1 

Operating income

40,427 

35.0 

33,626 

37.4 

Interest expense, net

(6,470)

(5.6)

(8,697)

(9.7)

Income before provision for income taxes

33,957 

29.4 

24,929 

27.7 

Provision for income taxes

13,552 

11.7 

10,395 

11.5 

Net income

$20,405 

17.7%

$14,534 

16.2%

Net income per share:

Basic

$0.23 

$0.21 

Diluted

$0.22 

$0.20 

Weighted-average shares used in per share calculations:

Basic

89,428 

69,145 

Diluted

92,632 

71,868 

BARE ESCENTUALS, INC.

NET SALES BY BUSINESS SEGMENT AND DISTRIBUTION CHANNEL

(in thousands, except percentages)

Three Months Ended

April 1, 2007

April 2, 2006

Retail

Infomercial

$34,274 

29.7%

$30,548 

34.0%

Boutiques

17,134 

14.8 

11,516 

12.8 

Total retail

51,408 

44.5 

42,064 

46.8 

Wholesale

Premium wholesale

35,580 

30.8 

23,828 

26.5 

Home shopping television

13,694 

11.8 

12,366 

13.8 

Spas and salons

9,959 

8.6 

7,506 

8.3 

International distributors

4,972 

4.3 

4,151 

4.6 

Total wholesale

64,205 

55.5 

47,851 

53.2 

Sales, net

$115,613 

100.0%

$89,915 

100.0%

BARE ESCENTUALS, INC.

CONSOLIDATED BALANCE SHEET DATA

(in thousands)

April 1,

2007

December 31,

2006

April 2,

2006

(Unaudited)

(Unaudited)

Cash and cash equivalents

$39,153 

$20,875 

$26,507 

Inventories

59,267 

62,006 

39,199 

Accounts receivable, net of allowances

37,721 

30,759 

24,944 

Total current assets

149,365 

125,715 

97,093 

Total assets

183,580 

155,835 

116,167 

Accounts payable

21,178 

25,357 

18,916 

Accrued liabilities

13,427 

16,123 

12,765 

Total current liabilities

58,764 

59,377 

50,082 

Current portion of long-term debt

17,624 

17,624 

12,667 

Long-term debt

307,376 

321,639 

374,000 

Total stockholders' equity (deficit)

$(188,803)

$(228,522)

$(310,833)