Home / Knowledge / News / Apparel/Garments / Wet Seal Q4 FY13 comparable stores sales dips 4.1%
Wet Seal Q4 FY13 comparable stores sales dips 4.1%
10
Feb '14
The Wet Seal, Inc, a leading specialty retailer to young women, reported sales results for the 13-week and 52-week periods ended February 1, 2014 compared to the 14-week and 53-week periods ended February 2, 2013. Comparable store sales figures for the fourth quarter and full year of fiscal 2013 are versus the comparable 13-week and 52-week periods from last year, respectively.
 
John D. Goodman, Chief Executive Officer, stated, “We had a difficult fourth quarter, marked by ongoing softness in mall traffic, a highly promotional environment throughout the teen sector and elements of our assortments that did not resonate as well as we anticipated with our customers. This led to a greater than expected decline in comp store sales and pressured our merchandise margins. 
 
During this challenging period, we remain focused on the critical disciplines of expense control and inventory management. At fiscal year-end, inventory dollars per square foot were down approximately 9% versus the prior year at Wet Seal and down approximately 6% versus the prior year at Arden B.”
 
Mr. Goodman continued, “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, which enabled us to narrow our comparable store sales decline to 4.1% and improve year-over-year merchandise margins by more than 150 basis points.”
 
E-Commerce
Versus the comparable 13-week period from last year, fourth quarter e-commerce sales declined approximately 20%, comprised of an approximate 13% decline at Wet Seal and an approximate 43% decline at Arden B. Versus the comparable 52-week period from last year, fiscal 2013 e-commerce sales declined approximately 10%, comprised of an approximate 8% decline at Wet Seal and an approximate 20% decline at Arden B. 
 
Following the successful launch of its new e-commerce platform in late October, the Company experienced some transition issues during the fourth quarter, many of which have been addressed. 
 
The new platform enables customers to execute transactions more efficiently from any device, providing opportunity for improved conversion rates and prospective e-commerce sales growth.
 
Balance Sheet
The Company ended fiscal 2013 with approximately $46 million in cash and no debt. Management will discuss the Company’s fiscal 2014 operating strategies, capital spending plans and long-term growth initiatives on its fourth quarter earnings call, which is scheduled for March 20, 2014.
 
Goodman concluded, “We believe there is opportunity to drive improvement in our sales and margin trends in the spring season, which is traditionally one of our strongest periods of the year. We are entering the season with clean inventories, which should help us strike a balance between margin strength and the need to maintain compelling promotions. Additionally, we are executing against our marketing, mobile and social media strategies, which are designed to drive customer engagement and differentiate Wet Seal.”
 

Wet Seal Inc

Must ReadView All

Apparel/Garments | On 22nd Mar 2017

Amazon India introduces 'A-Z GST Guide' programme

Amazon India has introduced a programme called 'A-Z GST Guide' to...

Textiles | On 22nd Mar 2017

Dyeing textiles with bacteria

As an alternative to toxic synthetic dyes, scientists are exploring...

Courtesy: BCG

Apparel/Garments | On 22nd Mar 2017

Consumption in India to touch $4 trillion by 2025: Report

Consumption in India is likely to triple to $4 trillion by 2025 as...

Interviews View All

Victor Chao
Esmetex

‘In future, clothing boundary lines will become increasingly blurred.’

Abhishek Ganguly
Puma India

‘As a brand, Puma is always looking for new and innovative ways to inspire ...

Ghanshyam Ghoghari
Kimora Fashion

Bridalwear is not about reds and whites anymore

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Tony Ward
Tony Ward

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

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

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
March 2017

March 2017

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

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search