X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

FOOTHILL RANCH, CA-The Wet Seal Inc. opened five new stores during the second quarter that ended July 29 and plans to open 20 to 25 new stores this year, the company reported Friday during a conference call with financial analysts to discuss quarterly results. The company turned a profit of $4.4 million in the quarter, compared with a loss of $11.7 million in the same quarter last year.

Joel Waller, Wet Seal’s CEO, said that the company expects to “accelerate square footage growth beginning in 2007.” It operated 406 stores at the end of the quarter, 314 of them Wet Seal locations and 92 in its Arden B format.

Wet Seal plans to increase its store count by about 15% per year after this year, Waller said. “We can continue with organic growth at this level until 2011 or 2012,” Waller added. He said that the company sees the potential for about 600 to 700 Wet Seal stores and about 200 to 250 of its Arden B locations. “Although some of our new stores have been open just a short time, all of them are exceeding our pro forma sales for those stores,” Waller noted.

As the specialty young women’s retailer continued its turnaround efforts in the second quarter, its profit, which worked out to four cents per share. Its results included a credit to sales of $1.4 million associated with a customer loyalty program and other one-time events that affected the bottom line.

Wet Seal’s sales for the quarter inched up to $129.5 million from $126.3 million for the same period last year, but comparable store sales for the quarter decreased 2.2% versus a 55.9% increase in the same period a year ago. Joel Waller, Wet Seal’s CEO, called the results of the quarter “disappointing” for the first two months but said that the company rebounded in the third month of the quarter.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

Dig Deeper

 

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt
Live Chat

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.