Home / Knowledge / News / Apparel/Garments / Sales down almost 11% at Wet Seal in Q3 FY'12
Sales down almost 11% at Wet Seal in Q3 FY'12
23
Nov '12
The Wet Seal, Inc., a leading specialty retailer to young women, announced results for its fiscal third quarter ended October 27, 2012, and provided its financial outlook for the fourth quarter of fiscal 2012.

For the third quarter:

  • Net sales were $135.5 million compared to net sales of $152.1 million for the prior year third quarter.
  • Consolidated comparable store sales declined 13.5%. Comparable store sales for Wet Seal declined 13.5% and for Arden B declined 13.8%.
  • Operating loss was $24.8 million, compared to operating income of $6.1 million, or 4.0% of net sales, in the prior year third quarter.
  • The current year quarter included $2.1 million in professional fees to defend against a shareholder proxy solicitation to replace a majority of the Company's board members. The proxy solicitation ultimately led to an agreement to replace four of the Company's seven board members during the quarter.
  • The current year quarter included $1.0 million in incremental legal fees for employment-related litigation and $0.6 million in charges for estimated settlement costs for various employment-related matters. The prior year quarter included a $1.3 million reversal of accrued incentive compensation expense, which reflected reduced expectations for achievement of incentive targets for the fiscal year.
  • The current year and prior year quarters included $6.5 million and $0.7 million in non-cash asset impairment charges, respectively. Excluding the impact of these non-cash charges and the current year proxy solicitation costs, operating loss would have been $16.2 million in the current year quarter, compared to operating income of $6.8 million, or 4.5% of net sales, in the prior year quarter.
  • Net loss was $14.8 million, or $0.17 per diluted share, as compared to net income of $3.7 million, or $0.04 per diluted share, in the prior year quarter. Excluding the after-tax effect of the non-cash asset impairment charges and proxy solicitation costs, net loss in the current year quarter would have been $9.7 million, or $0.11 per diluted share. Excluding the after-tax effect of the non-cash asset impairment charges, net income in the prior year quarter would have been $4.1 million, or $0.05 per diluted share.
  • As of quarter-end, the Company's inventory per square foot was up 3% versus the prior year quarter, with Wet Seal up 5% and Arden B down 7%.
  • The Company ended the quarter with $126.3 million of cash and cash equivalents and no debt. Due to the timing of quarter-end, the Company had not yet paid $9.6 million of its November rents and other landlord costs at that time. Typically, including at the end of the prior year quarter, the Company had made these payments during the quarter being reported.

The Company issued the following statement:

"While business in the third quarter remained challenging, we were encouraged by early signs of progress. Adjustments made to our merchandise assortment contributed to improved sales trends as we moved through the quarter. We began to transition Wet Seal back to its roots of being a fast fashion retailer, offering a broad assortment of on-trend merchandise at value price points that align with the tastes of the young teens to early 20's target customer. We believe we are now on a path that will lead to improved financial performance.


Must ReadView All

Courtesy: BekaertDeslee

Textiles | On 23rd Oct 2017

BekaertDeslee to expand North American facility

BekaertDeslee, one of the largest manufacturer of mattress textiles...

Courtesy: A&E

Textiles | On 23rd Oct 2017

A&E unveils Magic using Repreve sewing thread

American & Efird (A&E), a leading developer of industrial and...

Courtesy: Messe Frankfurt

Textiles | On 23rd Oct 2017

Over 4,000 exhibitors attend Intertextile Shanghai 2017

Another successful Intertextile Shanghai Apparel Fabrics has wrapped...

Interviews View All

Anshul Sood
Oceedee

‘Indian footwear market is nascent and largely a trend follower’

Sanjay Yagnik
Maa Tex Speciality

‘We suggest reducing dosage of sizing chemicals to reduce sludge...

Dinaz Madhukar
DLF Emporio and DLF Promenade

‘Each event and promotion is planned out keeping in mind the business of...

Ravindra Jain, Ashish Baid

Oswal Prints Private Limited has been manufacturing and exporting ethnic...

Harmeet Singh

New Delhi-based Jogindra Industries Private Limited provides an assortment ...

Vikas Banduke

Softech Controls Private Limited (SCPL) is a part of the Cotmac Group, an...

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Anisha Chaudhari
Threads & Shirts

Threads & Shirts is a freshly-tailored concept providing men/women a...

Sanjukta Dutta
Sanjukta's Studio

<b>Sanjukta Dutta</b> creates unique garments by clubbing prints of...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

October 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
77.1%
No
12.9%
Skip
10.0%

Total Votes: 70

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
61.4%
No
28.6%
Skip
10.0%

Total Votes: 70

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
85.7%
No
10.0%
Skip
4.3%

Total Votes: 70

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
75.7%
No
11.4%
Skip
12.9%

Total Votes: 70


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search