US: Wet Seal warns of larger Q4 loss on sales declines
Wet Seal said it experienced a difficult fourth-quarter
The Wet Seal has said it expects to report a larger fourth-quarter loss than previously guided, due to lower-than-expected sales and higher promotional activity.
For the 13 weeks ended 1 February, sales dropped 22.8% to US$124.8m. Like-for-like sales fell 16.5% compared to a fall of 8.3% in the comparable period last year.
CEO John Goodman said the company had experienced a difficult fourth-quarter, marked by ongoing softness in mall traffic, and a highly promotional environment throughout the teen sector. This, he said, pressured merchandise margins.
"While we did not meet our expectations for the fourth quarter, we are encouraged by progress made during the course of fiscal 2013 under our turnaround plan," he added.
The company said it now expects to report a fourth-quarter loss per diluted share, before non-cash asset impairments, of around $0.24. This compares to previously announced guidance in the range of $0.14 to $0.17.
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Fast fashion retailer The Wet Seal is closing 338 stores with immediate effect, leading to the loss of 3,695 full and part-time jobs....
Fashion retailer The Wet Seal recorded a wider third-quarter net loss as sales continued to decline across the business....
Beleaguered business The Wet Seal has assembled a team to identify and analyse potential strategic and financial alternatives....
Beleaguered business The Wet Seal has appointed company executive Thomas Hillebrandt to the role of interim chief financial officer....
Clinton Group, a shareholder of beleaguered business The Wet Seal, has written to the firm's board seeking clarification on its liquidity and suggesting options to shore up its balance sheet....
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