Home / Knowledge / News / Apparel/Garments / Wet Seal comparable sales drop in July
Wet Seal comparable sales drop in July
07
Aug '09
The Wet Seal Inc, a leading specialty retailer to young women, reported net sales and comparable store sales for the four-week period ended August 1, 2009, or fiscal July, and the fiscal second quarter ended August 1, 2009.

The Company estimates that the shift in retail “sales tax holidays” in 10 states, from fiscal July last year to fiscal August this year, negatively affected the Wet Seal division comparable store sales decline by slightly more than 1% in July.

The Company now estimates fiscal second quarter earnings per diluted share will be between $0.02 and $0.03. This includes $1.6 million in non-cash asset impairment charges, partially offset by the $1.2 million of breakage benefits, which were not anticipated in the Company's initial guidance. These expected results are within the lower end of the Company's initial guidance.

The Company also estimates it had year-over-year declines in inventory per square foot at Wet Seal and Arden B of approximately 15% and 21%, respectively, as of the end of the second quarter.

Ed Thomas, chief executive officer of The Wet Seal, Inc., commented: “While we are pleased with the progress we are making on the merchandising front at both divisions, the effects of the challenging economic environment continued to hamper sales. This, combined with the highly aggressive promotional environment throughout the second quarter, led to our current earnings expectations. That said, we were pleased to have achieved cost savings greater than we initially anticipated, and inventory levels remain well- aligned with the challenging environment.”

Mr. Thomas continued, “At Wet Seal, we made significant progress addressing inventory mix issues we had at the start of the second quarter. We began to see improved results in our tops business in late July due to these efforts. While we know we still have work to do in certain categories, we believe we are beginning the third quarter with an improved assortment.

“At Arden B, we are managing inventories conservatively as we continue to evaluate ideal levels under our new, lower-price selling model. This likely challenged comparable store sales results, but has also helped us maintain the merchandise margin improvements we began to demonstrate in the first quarter and improve operating income at this division in the second quarter as compared to the same period in the prior year.”

Click here to view more:

Wet Seal Inc


Must ReadView All

Indian govt relaxes cabotage rule for cotton transport

Textiles | On 25th May 2018

Indian govt relaxes cabotage rule for cotton transport

The Government of India has relaxed cabotage rules for transportation ...

Courtesy: Teejay Lanka

Textiles | On 25th May 2018

Teejay Lanka doubles production capacity at Indian mill

Teejay Lanka, one of Sri Lanka’s largest textile manufacturers, has...

Courtesy: Messe Frankfurt/Yarn Expo Autumn edition

Textiles | On 25th May 2018

Yarn Expo Autumn 2018 scheduled earlier

Over 500 exhibitors are expected at the Yarn Expo Autumn 2018, being...

Interviews View All

Sanjay Desai & Ashish Mulani
True Colors

Digital textile printing will be the technology of the future

Top executives
Textile industry

The foremost issue is bridging the skill gap

Top executives
Textile industry

Overall, Union budget 2018-19 is very balanced

John Kelley

Textile Events is one of the largest textile fair in the United Kingdom,...

Hardik Sanghvi

Idealin Fogging Systems has been engaged in designing and manufacturing...

Tejas N Patel, Navin D Patel

Founded in 1999 by Navin Patel in the name of Tejas Fabrics with 100...

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Kai Poehler
Voith Paper GmbH & Co. KG

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

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer <b>Prathyusha Garimella</b> is known for blending ...

Madhu Jain
Madhu Jain

She grew up in the walled city of Old Delhi, completed her studies, and...

Cigdem Akin
Cigdem Akin

She has carved a niche for herself as the national brand of Turkey. Her...

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

Leave your Comments


May 2018

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

news category


Related Categories:

Advanced Search