The Wet Seal reports profits in third quarter |
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| Monday, 24 November 2008 | |
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The Wet Seal Inc. posted profits in the third quarter, due to lower costs and the lack of expenses related to a change in the chief executive
position, which weighed down results last year.
The retailer says it expects to see lower sales and earnings in the fourth quarter. Net income for the three months to 1 November was $6.8 million, compared to a loss of $3.3 million a year earlier. Revenues in the quarter were down, at $146.6 million, down from $150.3 million a year ago. Comparable store sales fell 7.6 percent with a 3 percent drop at its Wet Seal stores and a 25 percent at Arden B. Operating income was $7.1 million, or 4.8 percent of net sales, compared to an operating loss of $4.4 million, or 3 percent of net sales, last time - an increase of $11.5 million year-over-year. The retailer, which operates 409 Wet Seal stores and 91 Arden B stores in 47 states, the District of Columbia and Puerto Rico, managed to cut inventories by 12.4 percent at Wet Seal and by 46.2 percent at Arden B. In its guidance for the fourth quarter, the company says it expects earnings in the range of $0.06 to $0.10 per share, with net sales falling to $155.4 million to $160.8 million from $179.6 million in the prior year quarter. Ed Thomas, chief executive officer, said the results "reflect our continued success in navigating this challenging economic environment." |
