Home / Knowledge / News / Apparel/Garments / The Wet Seal introduces fiscal 2011 store growth plans
The Wet Seal introduces fiscal 2011 store growth plans
20
Aug '10
The Wet Seal, Inc., a leading specialty retailer to young women, announced results for its fiscal second quarter ended July 31, 2010, and introduced guidance for the third quarter of fiscal 2010.

For the second quarter:

• Net sales for the quarter were $131.5 million compared to net sales of $136.4 million for the prior year second quarter.
• Consolidated comparable store sales decreased 4.3%. Comparable store sales for Wet Seal decreased 4.3% and for Arden B decreased 4.5%.
• Operating income was $2.6 million, or 2.0% of net sales, compared to $3.3 million, or 2.4% of net sales, in the prior year second quarter.
• The current year quarter included $1.0 million in non-cash asset impairment charges. The prior year quarter included $1.6 million in non-cash asset impairment charges and $1.2 million of benefits resulting from a change in estimated breakage for unredeemed gift cards, gift certificates and store credits.
• Net income was $1.6 million, or $0.02 per diluted share, as compared to $3.1 million, or $0.03 per diluted share, in the prior year quarter. Presented on a fully-taxed basis, similarly to the second quarter fiscal 2010 presentation, second quarter fiscal 2009 earnings would have been approximately $1.9 million, or $0.02 per diluted share.
• As of quarter-end, the Company's inventory per square foot was flat versus the prior year quarter, with Wet Seal down approximately 1% and Arden B up approximately 8%.
• The Company generated cash flows from operations of $3.6 million during the second quarter, and ended the quarter with $165.5 million of cash and cash equivalents and no debt.

Ed Thomas, chief executive officer of The Wet Seal, Inc., commented, "A very competitive promotional environment and volatile consumer spending patterns presented challenges to both of our operating divisions in the second quarter. In spite of these factors, we improved merchandise margins at Wet Seal as a result of better inventory content versus the prior year, and we sustained strong merchandise margin performance at Arden B, which helped offset much of the impact of our comparable store sales declines. We have also maintained strong discipline over costs as we continue operating in this very challenging retail climate.

"We feel good about inventory levels and merchandise assortment heading into the back half of the year at both Wet Seal and Arden B."

Mr. Thomas continued, "In the first half of August, we have been encouraged by improvements in comparable store sales trends in both divisions versus our second quarter results. Noting that the vast majority of state sales tax holidays occurred in the first two weeks of August, we continue to see that consumers are shopping when these tax events and other special shopping occasions occur. We are maintaining a cautious view on the third quarter given the volatility in shopping patterns we've seen for almost two years now, but we are certainly pleased with our early August results."


Must ReadView All

Robert Lighthizer speaking at the opening of the ministerial plenary of the 16th Forum of AGOA, in Lome. Courtesy: US Embassy in Togo

Textiles | On 17th Aug 2017

US committed to Africa, Lighthizer tells AGOA forum

The United States and Africa can jointly create a better business...

Textiles | On 17th Aug 2017

Sri Lankan textile exports down 4.1% in May 2017

After showing positive trend for two consecutive months, Sri Lankan...

Courtesy: CBEC

Textiles | On 17th Aug 2017

E-commerce firms need to file monthly statements: CBEC

India’s Central Board of Excise and Customs (CBEC) has clarified that ...

Interviews View All

Mukesh Agarwal & Rajesh Agarwal
Madhuram Fincap Pvt Ltd

Increasing prices and lack of demand main issues facing industry

Abhishek Ganguly
Puma India

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

Mohammad Mamun Ar Rashid
UL VS Bangladesh Ltd

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

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Sanjukta Dutta
Sanjukta's Studio

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

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Judy Frater
Somaiya Kala Vidya

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

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

August 2017

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
69.0%
No
17.2%
Skip
13.8%

Total Votes: 29

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
41.4%
No
37.9%
Skip
20.7%

Total Votes: 29

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
82.8%
No
6.9%
Skip
10.3%

Total Votes: 29

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
58.6%
No
10.3%
Skip
31.0%

Total Votes: 29


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



X