Foothill Ranch-based retailer Wet Seal Inc. took another step in its turnaround Monday by reporting a smaller second-quarter operating loss and higher sales.
Sales for the quarter were up nearly 20% from a year earlier to $126.3 million, Wet Seal said. The retailer cited a jump in same-store sales at Wet Seal and Arden B. chains, reversing a sales drop a year earlier.
Wet Seal reported an operating loss of $10.4 million, down from $67 million a year ago. The company’s net loss, which included charges for a consulting pact, a financing deal and other items, was $35 million, versus $106.3 million last year.
The net loss includes a $16 million charge for a consulting deal with Michael Gold, who was hired to reverse Wet Seal’s sales slump.
Wet Seal started struggling in 2002 after riding high in 2001. The retailer, which sells trendy clothes for girls and young women, struggled to find the right fashion mix and has been losing money since 2003.
The company, which warned of a possible Chapter 11 bankruptcy reorganization earlier this year, has been logging some gains this year. Wet Seal’s July same-store sales were up 51%, while total sales for the month were up 15% to $37.6 million.
