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.
Help test our new apparel sourcing tool.
Beleaguered teen apparel retailer The Wet Seal has become the first major casualty of 2015 to file for Chapter 11 bankruptcy protection....
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....
- US apparel sector braces for potential cost hikes
- Vietnam grows share of US apparel imports in 2016
- Trade Tracker – Trump's first weeks, Brexit agenda
- China leads US apparel sources with falling prices
- Key trade issues facing US textiles and apparel
- Bangladesh "high threat" for terrorist activity
- VF Corp sees Q4 and FY earnings tumble
- Sales at US clothing retailers jumped in January
- Ralph Lauren new execs to support Way Forward Plan
- US Q4 in brief – VF Corp, Kate Spade, Rocky Brands
- When Things Go Wrong - A Practical Guide to Managing Common Problems in Apparel Sourcing
- Outdoor performance apparel 2016: A broader perspective
- Technical textile markets: product developments and innovations, December 2016
- Global market review of lingerie – forecasts to 2022
- Southeast Asia strategic sourcing review – a focus on Cambodia, Vietnam and Myanmar