The Wet Seal, Inc., a leading specialty retailer to young women, announced that it is revising its financial guidance for the third quarter of fiscal 2013 ending November 2, 2013.
The Company expects to report a comparable store sales increase in the low-single digits and net loss per diluted share in the range of $0.10 to $0.12, before non-cash asset impairments. This compares to prior guidance of a comparable store sales increase in the mid-single digits and net loss per diluted share in the range of $0.02 to $0.03, before non-cash asset impairments.
John D. Goodman, Chief Executive Officer, stated, "Following our strong start to the quarter, mall traffic softened considerably during September and has continued into October, resulting in an increasingly promotional competitive environment in recent weeks. We expect to deliver improvement in most key financial metrics versus the year ago period, but the need to implement more extensive promotions than planned has caused us to lower our margin and earnings expectations for the quarter.
"Despite the extremely tough market conditions, we are encouraged by continued expectations of positive comp store sales and substantial improvement in merchandise margin on a year-over-year basis. To that end, we are seeing a positive response to our marketing initiatives and other customer engagement strategies. When the Wet Seal girl is in the mall, we're capturing her attention."
Mr. Goodman concluded, "As we continue to navigate through this difficult period, we are carefully controlling expenses and are focused on closely managing inventories in both divisions to end the third quarter well-positioned ahead of the critical holiday selling season."
The Company will report third quarter fiscal 2013 sales on November 7, 2013, and expects to report full financial results and hold its quarterly earnings conference call on November 25, 2013.
About The Wet Seal, Inc.
Headquartered in Foothill Ranch, California, The Wet Seal, Inc. is a leading specialty retailer of fashionable and contemporary apparel and accessory items. As of August 3, 2013, the Company operated a total of 525 stores in 47 states and Puerto Rico, including 464 Wet Seal stores and 61 Arden B stores.