Teen clothing retailer Wet Seal Inc. said Tuesday its loss narrowed in the third quarter on a jump in sales.
Foothill Ranch-based Wet Seal reported a net loss of $6.5 million in the quarter ended Oct. 29, down from a loss of $24.2 million a year ago. Sales rose 16.7% to $129 million in the period.
The company said that it posted an operating profit of $300,000 in the quarter. That’s Wet Seal’s first quarterly positive operating income since the second quarter of 2002.
Wet Seal, which had been struggling for the past few years, has closed more than 100 unprofitable stores, revamped its management and attracted new financing during the past year.
The company, which declined to give earnings guidance for the fourth quarter, did say that it could record “significant” charges of about $7 million in the period related to stock given to consultant Michael Gold.
Earlier Tuesday Wet Seal named John Luttrell as its chief financial officer. Luttrell replaces Douglas Felderman, who stepped down for personal reasons in the summer.
Luttrell most recently was chief financial officer of Cost Plus Inc. for the past five years. Prior to that, he had a two-year stint as vice president, controller, for Bugle Boy Industries Inc.
