Press release from Business Wire
The Wet Seal, Inc. Announces June Comparable Store Sales Declined 3.6%
<p class=' bwtextaligncenter'> <b>Updates Second Quarter Earnings Guidance to Low End of Initial Range</b> </p>
Thursday, July 08, 2010
The Wet Seal, Inc. Announces June Comparable Store Sales Declined 3.6%07:00 EDT Thursday, July 08, 2010 FOOTHILL RANCH, Calif. (Business Wire) -- The Wet Seal, Inc. (Nasdaq:WTSLA), a leading specialty retailer to young women, reported net sales and comparable store sales for the five-week period ended July 3, 2010, or fiscal June, as follows: Fiscal June Net Sales Comparable Store Sales% Change $ in Millions % Change From Last Year This Year Last Year Wet Seal $ 41.8 -1.7 % -3.7 % -11.3 % Arden B 8.5 -6.9 % -3.2 % -10.3 % Total $ 50.3 -2.6 % -3.6 % -11.1 % Ed Thomas, chief executive officer of The Wet Seal, Inc., commented: “June comparable store sales results were below our expectations due, in part, to inconsistent traffic patterns that continued through the month.” “We continue to monitor our inventory levels closely and are comfortable with inventory levels at both of our operating divisions. We expect to be well-positioned as we enter the back to school season.” Mr. Thomas continued, “We now estimate our fiscal second quarter earnings will be in the low end of our previous guidance range of $0.02 to $0.04 per diluted share. While sales have been below our prior estimates and we continue to compete in an aggressive promotional environment, strong cost discipline throughout our business enabled us to maintain earnings expectations within our initial range.” About Wet Seal Headquartered in Foothill Ranch, California, The Wet Seal, Inc. is a leading specialty retailer of fashionable and contemporary apparel and accessory items. As of July 3, 2010, the Company operated a total of 503 stores in 47 states, the District of Columbia and Puerto Rico, including 425 Wet Seal stores and 78 Arden B stores. The Company's products can also be purchased online at www.wetseal.com or www.ardenb.com. For more company information, visit www.wetsealinc.com. SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995: This news release contains forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, statements that relate to inventory positions entering July, the Company's earnings expectations for the Company's fiscal second quarter, or any other statements that relate to the intent, belief, plans or expectations of the Company or its management. All forward-looking statements made by the Company involve material risks and uncertainties and are subject to change based on factors beyond the Company's control. Accordingly, the Company's future performance and financial results may differ materially from those expressed or implied in any such forward-looking statements. Such factors include, but are not limited to, those described in the Company's filings with the Securities and Exchange Commission. This news release contains results reflecting partial year data and non-fiscal data that may not be indicative of results for similar future periods or for the full year. The Company will not undertake to publicly update or revise its forward-looking statements even if experience or future changes make it clear that any projected results expressed or implied therein will not be realized.