Edmond Thomas, the chief executive who’s led an ongoing turnaround at Foothill Ranch-based Wet Seal Inc., is leaving the operator of mall clothing stores.
Thomas, who joined Wet Seal in late 2007, said he is stepping down when his contract expires on Oct. 8. He could stay on longer if a replacement isn’t found by then.
It’s unclear why Thomas is stepping down. He’s led a revival of Wet Seal, which runs some 500 mall stores for teen girls and young women.
But, like other retailers, Wet Seal continues to see mixed results as shoppers remain hesitant.
The company’s sales at stores open at least a year fell in June by 3.6% from a year earlier.
The monthly same-store sales drop was the third in a row for Wet Seal after declines in May and April that reversed gains in March and February.
The company warned that that profits for the three months through July could come in at the low end of expectations.
Wet Seal is due to report results on Aug. 18.
Thomas has steered Wet Seal through its second turnaround in the past 10 years.
He’s cut costs, remodeled stores and added more jeans and other pants, switching out styles faster and using focus groups to help better understand the taste of the company’s fickle customers.
Thomas initially closed stores or slowed openings. Now he’s opening stores.
In June, the company opened a Riverside store called Blink by Wet Seal to test products and possibly grow to be a chain of its own.
Wet Seal also is opening a Brea Mall store that includes a Blink section.
The moves have earned Thomas good marks from Wall Street analysts.
Wet Seal spent the early part of the last decade reorganizing under former chief executive Joel Waller, who stemmed losses and brought robust sales.
But sales gains ground to a halt in the latter part of 2007.
The departure is set to end Thomas’ second stint at Wet Seal, where he spent 1992 to 2000 as president and chief operating officer.
In between, he was chief executive of Irvine-based Tilly’s Inc., a seller of clothes inspired by skateboarding and surfing.
