The Wet Seal sales drop for Q4, full year 2013

Foothill Ranch, Calif. – The Wet Seal Inc. reported declines in net and same-store sales for the fourth quarter and full fiscal year 2013, compared to the same periods in the prior year. During the fourth quarter, Wet Seal reported net sales of $122.8 million, down 22.8%, and a 16.5% drop in same-store sales.

During the full fiscal year, Wet Seal reported net sales of $530.1 million, an 8.7% decline, and a 4.1% decrease in same-store sales. E-commerce sales declined 20% during the quarter and 10% during the year. John D. Goodman, CEO, cited mall traffic, promotions and assortment as factors in the disappointing results.

“We had a difficult fourth quarter, marked by ongoing softness in mall traffic, a highly promotional environment throughout the teen sector and elements of our assortments that did not resonate as well as we anticipated with our customers,” said Goodman. “This led to a greater than expected decline in same-store sales and pressured our merchandise margins. During this challenging period, we remain focused on the critical disciplines of expense control and inventory management. At fiscal year-end, inventory dollars per square foot were down approximately 9% versus the prior year at Wet Seal and down approximately 6% versus the prior year at Arden B.”

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