Home / Knowledge / News / Apparel/Garments / Retailer Wet Seal lowers Q2 profit forecast
Retailer Wet Seal lowers Q2 profit forecast
10
Jul '08
The Wet Seal Inc, a leading specialty retailer to young women, reported net sales and comparable store sales for the five-week period ended July 5, 2008.

Including the effect of the $1.9 million in non-cash interest charges described below, the Company now estimates earnings for its fiscal second quarter will range from $0.07 to $0.09 per diluted share. Before the effect of such charges, the Company now estimates earnings will range from $0.09 to $0.11 per diluted share. This estimate represents an increase over the Company's previous earnings guidance before any such charges, which ranged from $0.08 to $0.10 per diluted share.

Ed Thomas, chief executive officer of The Wet Seal Inc, commented: "Comparable store sales for June were in line with our expectations, and we continue to be encouraged by the early customer response to the improved merchandise we began delivering to Arden B stores in May.

I am pleased with the slight improvement in our earnings expectations before non-cash interest charges. This reflects greater than previously expected benefits from our ongoing cost and inventory management efforts in this difficult, and very promotional, retail environment."

The Company announced that, during fiscal June, investors converted $3.4 million of the Company's Secured Convertible Notes into approximately 2.3 million shares of the Company's Class A Common Stock. As a result, the Company incurred non-cash interest charges of $1.9 million, or $0.02 per diluted share, for the accelerated write-off of net unamortized debt discount, deferred financing costs and capitalized interest.

The Company's previously issued earnings guidance for the second quarter did not include any such charges due to an inability to predict the timing of Note conversions.

After the effect of the Note conversions, $4.7 million of Notes, convertible into approximately 3.1 million shares of Class A Common Stock, remain outstanding. There is approximately $2.6 million of net unamortized debt discount, deferred financing costs and capitalized interest associated with the remaining outstanding Notes.

Wet Seal Inc


Must ReadView All

Union Minister for finance Arun Jaitley chairing the 25th GST Council meeting, flanked by minister of state for finance Shiv Pratap Shukla (right) and finance secretary Dr Hasmukh Adhia. Courtesy: PIB

Textiles | On 20th Jan 2018

GST rate on velvet fabric reduced to 5%

The 25th Goods and Services Tax (GST) Council meeting, held under the ...

RIL petrochemicals’ revenue grows 47.6% in Q3 FY18

Textiles | On 20th Jan 2018

RIL petrochemicals’ revenue grows 47.6% in Q3 FY18

The revenue from the petrochemicals segment at Reliance Industries...

Courtesy: Cotton USA

Textiles | On 20th Jan 2018

US cotton bodies pledge to support CCI activities

Ten US cotton organisations have pledged industry contributions in...

Interviews View All

Mohammad Mamun Ar Rashid
UL VS Bangladesh Ltd

Productivity, creativity and innovation play a vital role in the growth of ...

Binoy Ravjani
Hero's Fashion

‘One of the recent trends in hand block printing is the indigo process,...

Viral Desai
Zenitex Mill Pvt Ltd

Full of green energy

Rikesh Mistry

Jupiter Comtex Pvt Ltd, established in 1973, started its textile machinery ...

Suresh P Bagrecha

Komal Texfab, founded in 1981, is into manufacturing of knitted fabrics,...

Urmil Arya

Sushila International, a well established textile organisation established ...

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Steve Cole
Xerium Technologies

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

Sanjukta Dutta
Sanjukta's Studio

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

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

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

January 2018

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
69.1%
No
13.4%
Skip
17.5%

Total Votes: 97

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
63.9%
No
28.9%
Skip
7.2%

Total Votes: 97

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
87.6%
No
9.3%
Skip
3.1%

Total Votes: 97

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
82.5%
No
8.2%
Skip
9.3%

Total Votes: 97


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