Foothill Ranch-based Wet Seal Inc. on Thursday reported quarterly results and offered an outlook for the current quarter that largely fell in line with Wall Street expectations.
For the three months ended Aug. 2, Wet Seal had sales of $149.1 million, up 4% from a year earlier and in line with what analysts expected.
Profit for the quarter grew 32% to $12 million on cost cutting. Wall Street had been expecting a profit of $10 million.
For the current quarter, Wet Seal gave a mixed outlook that wasn’t bad compared to what other retailers have been reporting.
The company forecast a profit of $5 million to $7 million. Analysts had been expecting a profit of $5 million.
Sales for the three months October are seen coming in at $144 million to $149 million, down from the $150.6 million analysts had been expecting.
Shares were flat in afterhours trading with a market value of $370 million.
Wet Seal sells trendy, inexpensive clothes and accessories for teens and young women at 404 Wet Seal and 93 Arden B stores.
The company has been on a mission to restructure in the past year after a long battle with Arden B’s dwindling sales and fashion missteps at Wet Seal.
Wet Seal plans to continue making merchandise changes at Arden B through mid-September.
The company said it is focused on driving sales productivity at Arden B. and Wet Seal.
