Wet Seal Q4 Comps. Down; Sees Wider-than-expected Loss

(RTTNews) - Wet Seal Inc. (WTSLA), a specialty retailer headquartered in Foothill Ranch, California, said its comparable store sales declined 16.5 percent for the fourth quarter. Total quarterly sales reached $124.8 million, down 22.8 percent from last year.

CEO John Goodman said, "We had a difficult fourth quarter, marked by ongoing softness in mall traffic, a highly promotional environment throughout the teen sector and elements of our assortments that did not resonate as well as we anticipated with our customers. This led to a greater than expected decline in comp store sales and pressured our merchandise margins." In addition, the company said it now expects to report fourth-quarter loss per share, excluding non-cash asset impairments, of about $0.24. This compares to previously projected loss range of $0.14 - $0.17 and reflects lower than expected sales and greater than expected promotional activity during the period.

Analysts polled by Thomson Reuters currently expect the company to report a loss per share of $0.16 for the quarter. Analysts' estimates typically exclude special items.