53.2 F
Laguna Hills
Thursday, Mar 28, 2024
-Advertisement-

Wet Seal Looking to Revamped Arden B. for Growth

It’s the moment of truth for Foothill Ranch-based Wet Seal Inc.

The company spent the past year revamping marketing and styles for its Arden B. stores, which go after women in their 20s and up.

This month is the first time a full clothing selection will roll out under new merchandise president Greg Germette, something company watchers have been waiting for.

The chain, which has some 93 stores, is “nearing the next phase of its metamorphosis,” said Eric Beder, analyst at Brean Murray Carret & Co., in a recent report.

Arden B. already is playing up big changes, including a “much more aggressive color palette” with cobalt blue and yellow, and trendy styles that play up more “leg.”

On Arden B.’s Web site, the chain highlights pleated miniskirts and a super short dress with black-and-white swirls.

“We believe Arden B. will be the key upside driver for Wet Seal in 2007 as the chain will benefit from a coordination collection for the first time in almost three years,” Beder said.

Wet Seal runs 93 Arden B. stores. The bulk of the company’s stores, 336, are Wet Seal, which cater to teen girls.

Arden B. also is changing its sourcing, or where it gets its fabrics and clothes made.

Now about 30% of the clothes come from overseas, which means they cost less and are more profitable for Wet Seal. That’s expected to hit 50% this year and eventually reach 80%, Beder said.

“Wet Seal remains poised for continued top- and bottom-line growth in 2007 and beyond,” the analyst said.

The company also has made big changes at its Wet Seal chain.

The division continues to try and lure more shoppers by improving checkout, store layouts and selection, which has shifted to a “more fashion-based focus,” Beder said.

Wet Seal also got a new general merchandise manager, Dyan Jozwick.

“The division is slowly building up its identity as a key fashion choice for the teenage customer,” Beder said.

The company has been on a tear the past couple of years after stumbling hard earlier in the decade.

It lost some steam in December, posting a same-store sales increase of 1.3%, at the low end of its 1% to 3% forecast. Warmer weather cut into sales of winter clothes, the company said.

Same-store sales for January are expected to increase in the low- to mid-single digits, the company said.

Wet Seal expects to see an overall sales bump this year by opening stores.

The company already has signed 20 leases with another 20 approved for this year, Beder said.

“We believe our projection of 65 net new stores is achievable,” he said.

Wet Seal should benefit from opening stores in “B” and “C” malls, where the brand is seen as a “destination” store, and where rents are “materially lower” than “A” malls, Beder said.


More Allergan

Costa Mesa-based Pacific Communica-tions continues to see more work from its drug maker parent, Allergan Inc. of Irvine.

The marketing shop recently picked up Allergan’s managed care business and hired a worker to oversee the account.

Pacific Communications, which started as Allergan’s marketing arm and still is owned by the company, hired Aubrey Johnson as vice president, management supervisor to work with Allergan’s managed care unit.

The business previously was held by McCann Healthcare Worldwide’s Torre Lazur ad shop in New Jersey.

The added work comes on the heels of Pacific Communications being named agency-of-record for Juv & #233;derm, a wrinkle smoother Allergan got in its buy of Santa Barbara-based Inamed Corp. last year.

Pacific Communications had hired four workers to help with Juv & #233;derm.

The work for Allergan includes print ads, sales materials and customer relationship marketing.


Local.com Buy

Irvine-based Web advertising company Local.com Corp. is buying Tulsa, Okla.-based soUno Directional Media Solutions LLC, which offers online yellow pages advertising to small businesses, for $2.25 million in cash and $6.75 million in stock.

The deal is expected to close in April.

The move is part of Local.com’s bid to beef up its offerings, including listings for local businesses, maps, driving directions and user reviews.

The company, formerly known as Interchange, refocused on the local market last year after seeing a drop in national searches. The company gained attention for a big stock run-up and meltdown in 2004 and 2005.

For the past year or so, the company has focused on Web advertising for people trying to find businesses in their area.

Want more from the best local business newspaper in the country?

Sign-up for our FREE Daily eNews update to get the latest Orange County news delivered right to your inbox!

-Advertisement-

Featured Articles

-Advertisement-
-Advertisement-
-Advertisement-
-Advertisement-

Related Articles

-Advertisement-
-Advertisement-