Foothill Ranch-based mall clothing retailer Wet Seal Inc. reported a better than expected surge in January sales and upped its profit outlook for the recently ended quarter.
Wet Seal, which runs 533 stores selling clothes for teen girls and young women, saw sales at stores open at least a year rise 6.2% from a year earlier.
Analysts had been looking for a gain of 4%.
The same-store sales gain provided a solid coming out for Susan P. McGalla, a former American Eagle Inc. executive who joined as Wet Seal’s chief executive on Jan. 18.
“We were pleased with our positive comparable store sales,” she said in a statement. “The momentum that began in late December continued through January.”
The company’s dominant Wet Seal division for teen girls saw a 6.6% gain in same-store sales.
Arden B., which sells clothes for young women, was up 3.7%.
Total sales for the month were $35.4 million, up 14.6% from a year earlier.
Better than expected sales prompted Wet Seal to up its profit forecast for the three months through January.
It now expects an adjusted profit of $4 million to $5 million, up from an earlier forecast of $3 million.
Like many teen retailers, Wet Seal was hit hard by the downturn and fast fashion competitors such as Los Angeles-based Forever 21 Inc.
Previous chief executive Ed Thomas is credited with leading a turnaround that has included revamping clothing styles, shuttering stores and reducing operational costs.
Last year, Wet Seal saw the reopening of some mall locations along with new store openings in strip and neighborhood shopping centers.
