Wet Seal grows sales during Q2, misses estimates

Foothill Ranch, Calif. – The Wet Seal Inc. reported net sales of $137.2 million during the second quarter of fiscal 2013, a 1.5% improvement from the second quarter of the previous year. However, this figure fell a bit short of the $138.5 million analysts were expecting.

Same-store sales grew 3.7%, a substantial turnaround from an 11.1% same-store sales decline during the second quarter of fiscal 2012. E-commerce sales, which are not included in same-store sales totals, remained flat. The company expects earnings per share of about one cent, in line with previous guidance of EPS ranging from flat to two cents per share. Wet Seal will release full earnings for the quarter on Aug. 27.

“We’re pleased to see the business return to positive comp store sales, particularly against the backdrop of a challenging retail environment in June and July," said John D. Goodman, CEO of Wet Seal. "While sales trends softened during the latter months of the period, we generated positive comparable store sales each month of the quarter and achieved an improved blend of regular and promotional pricing. This enabled us to generate a substantial increase in merchandise margin versus a year ago and deliver on our previously announced expectations for earnings improvement. We also ended the quarter with inventories well-positioned entering the key back-to-school shopping period.”

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