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Wet Seal reports Q1 fiscal 2007 results & provides Q2 guidance
23 May '07
3 min read
The Wet Seal Inc announced results for its first fiscal quarter ended May 5, 2007 and provided guidance for its second fiscal quarter.
Financial Results:
Net income for the 13-week period ended May 5, 2007 was $7.6 million, or $0.07 per diluted share. Operating income totaled $6.6 million, or 4.8% of net sales. Net income per diluted share was at the upper end of the Company's original guidance that indicated a range between $0.04 and $0.08 per diluted share.
These results compare to a net loss of $14.0 million, or $0.22 per diluted share, for the 13-week period ended April 29, 2006.
Included in the prior year first quarter was a non-cash interest charge of $18.1 million associated with the conversion of the Company's convertible notes, a non-cash stock compensation charge of $4.1 million associated with a consulting contract that has now expired, a $2.3 million increase in sales associated with changes made to a customer loyalty program, a $0.7 million employee severance charge, and a $0.4 million reduction to a store closure reserve.
Before the effect of these items, net income for the first quarter of last year totaled $6.2 million, and adjusted operating income was $6.3 million, or 5.1% of adjusted net sales.
Comparable store sales for the 13-week period ended May 5, 2007 increased 2.7% compared to the 13-week period ended May 6, 2006. The Company reported a 20.0% increase in comparable store sales for its first fiscal quarter last year. Net sales for the 13-week period ended May 5, 2007 were $138.0 million compared with net sales of $125.1 million for the 13-week period ended April 29, 2006.
Financial Results:
Net income for the 13-week period ended May 5, 2007 was $7.6 million, or $0.07 per diluted share. Operating income totaled $6.6 million, or 4.8% of net sales. Net income per diluted share was at the upper end of the Company's original guidance that indicated a range between $0.04 and $0.08 per diluted share.
These results compare to a net loss of $14.0 million, or $0.22 per diluted share, for the 13-week period ended April 29, 2006.
Included in the prior year first quarter was a non-cash interest charge of $18.1 million associated with the conversion of the Company's convertible notes, a non-cash stock compensation charge of $4.1 million associated with a consulting contract that has now expired, a $2.3 million increase in sales associated with changes made to a customer loyalty program, a $0.7 million employee severance charge, and a $0.4 million reduction to a store closure reserve.
Before the effect of these items, net income for the first quarter of last year totaled $6.2 million, and adjusted operating income was $6.3 million, or 5.1% of adjusted net sales.
Comparable store sales for the 13-week period ended May 5, 2007 increased 2.7% compared to the 13-week period ended May 6, 2006. The Company reported a 20.0% increase in comparable store sales for its first fiscal quarter last year. Net sales for the 13-week period ended May 5, 2007 were $138.0 million compared with net sales of $125.1 million for the 13-week period ended April 29, 2006.
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