Home / Knowledge / News / Apparel/Garments / Wet Seal announces Q2 2008 results
Wet Seal announces Q2 2008 results
22
Aug '08
The Wet Seal Inc, a leading specialty retailer to young women, announced results for its fiscal second quarter ended August 2, 2008, and introduced guidance for its fiscal third quarter.

For the second quarter:
• Net sales for the 13-week period ended August 2, 2008, were $149.1 million compared to net sales of $143.3 million for the 13-week period ended August 4, 2007.

• Consolidated comparable store sales declined 4.4%. Comparable store sales for Wet Seal declined 1.8% and for Arden B declined 13.8%.

• Operating income was $11.8 million, or 7.9% of net sales, compared to $5.8 million, or 4.0% of net sales, in the second quarter of fiscal 2007, an increase of 104% year over year.

• The current year second quarter included new store pre-opening expenses of $0.1 million versus $0.7 million in the prior year second quarter.

• The current year second quarter 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.

• Net income in the current year second quarter was $10.1 million, or $0.10 per diluted share, as compared to net income of $6.8 million, or $0.07 per diluted share, in the prior year second quarter. Excluding the effect of the $1.9 million in non-cash interest charges noted above, net income in the current year second quarter was $12.0 million, or $0.12 per diluted share.

• The second quarter earnings per diluted share of $0.10, or $0.12 before the effect of the non-cash interest charges, exceeded the Company's previously announced guidance for the quarter of between $0.07 and $0.09 per diluted share, or between $0.09 and $0.11 per diluted share before the effect of the non-cash interest charges.

Ed Thomas, chief executive officer, commented, "We were pleased with our second quarter financial results, which are significantly improved over the prior year in spite of an increasingly difficult retail environment. Through our ongoing cost and inventory management initiatives, we generated an operating margin of nearly 8% of net sales, with operating income improvements in both our Wet Seal and Arden B business segments.

In spite of continued comparable store sales challenges at Arden B during its merchandising turnaround, its infrastructure downsizing earlier this year and cautious inventory management efforts during the remerchandising have reversed an operating loss to operating income, prior to corporate cost allocations, in the second quarter and for the first half of fiscal 2008 in that segment."

Mr. Thomas continued, "With many economic factors continuing to pressure the consumer as we entered the back to school selling season, we are staying the course with highly disciplined cost and inventory management under the assumption that the retail environment will remain challenging at least through year-end. At the same time, we will continue to phase in merchandise mix changes at Arden B through mid-September and remain focused on efforts to drive sales productivity improvements in both divisions."


Must ReadView All

UK, EU agree to take more time for Brexit deal

Textiles | On 19th Oct 2018

UK, EU agree to take more time for Brexit deal

After an ongoing Brexit summit produced no tangible results, European ...

Courtesy: Pexels

Textiles | On 19th Oct 2018

US announces intent for trade deals with Japan, EU, UK

US Trade Representative Robert Lighthizer recently notified the...

Courtesy: Turtle Limited

Fashion | On 19th Oct 2018

'We are trying to imbibe multi-utility factor in menswear'

Turtle Limited, a leading Indian brand in menswear fashion, is trying ...

Interviews View All

Md Hanifur Rahman, Aman Group

Md Hanifur Rahman
Aman Group

The level of understanding the job role and organisational requirements...

Krishnanand Tripathi, Textrade International Ltd

Krishnanand Tripathi
Textrade International Ltd

We believe in vocational education for entry-level employees, offering...

Smith Vaghasia, Sanado India

Smith Vaghasia
Sanado India

Online remains the best destination for shopping

Harsh Shah,

Harsh Shah

Fynd is the central online shopping destination for fashion, offering...

Karan Behal,

Karan Behal

Karan Behal, founder and chief executive of top-selling brand...

Vikas Banduke,

Vikas Banduke

Softech Controls Private Limited (SCPL) is a part of the Cotmac Group, an...

Silke Brand-Kirsch, Schlegel und Partner

Silke Brand-Kirsch
Schlegel und Partner

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

Luis Quijano, Liberty University

Luis Quijano
Liberty University

Focusing on bold patterns and colour palettes, Luis Quijano, a student at...

Ayyappa Nagubandi, Broadcast Wearables Pvt Ltd

Ayyappa Nagubandi
Broadcast Wearables Pvt Ltd

Hyderabad-based Broadcast Wearables has come up with the country's first...

Adriano Goldschmied, AG Jeans

Adriano Goldschmied
AG Jeans

The hype around 'designer jeans' was created by him. And the new wave of...

Samar Firdos, Arvind Ltd

Samar Firdos
Arvind Ltd

<b>Samar Firdos</b>, Chief Manager (Design) at Lifestyle Apparel Denim...

Prathyusha Garimella, Prathyusha Garimella

Prathyusha Garimella
Prathyusha Garimella

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

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


October 2018

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

news category


Related Categories:

Advanced Search