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Sales at speciality retailer Wet Seal drops
21 Nov '08
5 min read
Mr. Thomas continued, "In these difficult times, we are very pleased that Wet Seal proves to be a key destination for young women to find fashionable, value-oriented apparel and accessories."
The Company generated cash flows from operations of $10.2 million during the third quarter of fiscal 2008 and ended the quarter with $127.6 million of cash and cash equivalents and $2.5 million of long-term debt, comprised of convertible notes, net of discount. As of the end of the prior year third quarter, the Company had cash, cash equivalents and marketable securities of $80.1 million and long-term debt, comprised of convertible notes, net of discount, of $3.4 million.
The Company ended the third quarter with inventories of $41.2 million, representing a 22.2% decrease in inventory per square foot versus the end of the prior year third quarter. This decrease was comprised of a 12.4% decrease at Wet Seal stores and a 46.2% decrease at Arden B stores.
First Nine Months Financial Results:
Net sales for the 39 weeks ended November 1, 2008, were $438.1 million compared to net sales of $431.6 million for the 39 weeks ended November 3, 2007. Comparable store sales for the 39 weeks ended November 1, 2008 declined 6.5%, comprised of a 2.7% decline at Wet Seal and a 20.2% decline at Arden B.
Net income for the 39 weeks ended November 1, 2008 was $25.9 million, or $0.26 per diluted share. These results compare to net income of $11.0 million, or $0.11 per diluted share, for the 39 weeks ended November 3, 2007. The current year results included $1.9 million in non-cash interest charges associated with a June 2008 conversion of $3.4 million of the Company's Secured Convertible Notes into Class A common stock.
Excluding the effect of these non-cash interest charges, net income for the 39 weeks ended November 1, 2008, was $27.8 million, or $0.28 per diluted share.
Cash flows from operations for the 39 weeks ended November 1, 2008 was $36.2 million compared to cash flows from operations of $22.9 million for the 39 weeks ended November 3, 2007.
The Company generated cash flows from operations of $10.2 million during the third quarter of fiscal 2008 and ended the quarter with $127.6 million of cash and cash equivalents and $2.5 million of long-term debt, comprised of convertible notes, net of discount. As of the end of the prior year third quarter, the Company had cash, cash equivalents and marketable securities of $80.1 million and long-term debt, comprised of convertible notes, net of discount, of $3.4 million.
The Company ended the third quarter with inventories of $41.2 million, representing a 22.2% decrease in inventory per square foot versus the end of the prior year third quarter. This decrease was comprised of a 12.4% decrease at Wet Seal stores and a 46.2% decrease at Arden B stores.
First Nine Months Financial Results:
Net sales for the 39 weeks ended November 1, 2008, were $438.1 million compared to net sales of $431.6 million for the 39 weeks ended November 3, 2007. Comparable store sales for the 39 weeks ended November 1, 2008 declined 6.5%, comprised of a 2.7% decline at Wet Seal and a 20.2% decline at Arden B.
Net income for the 39 weeks ended November 1, 2008 was $25.9 million, or $0.26 per diluted share. These results compare to net income of $11.0 million, or $0.11 per diluted share, for the 39 weeks ended November 3, 2007. The current year results included $1.9 million in non-cash interest charges associated with a June 2008 conversion of $3.4 million of the Company's Secured Convertible Notes into Class A common stock.
Excluding the effect of these non-cash interest charges, net income for the 39 weeks ended November 1, 2008, was $27.8 million, or $0.28 per diluted share.
Cash flows from operations for the 39 weeks ended November 1, 2008 was $36.2 million compared to cash flows from operations of $22.9 million for the 39 weeks ended November 3, 2007.
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