Foothill Ranch-based Wet Seal Inc.’s store-closing efforts look to be paying off.
The teen retailer said Friday its first-quarter operating loss narrowed to $6.8 million versus a loss of $24.8 million a year earlier, on a 3.9% rise in sales to $103.8 million.
Wet Seal took a $5.2 million charge to close 105 unprofitable stores in the period. The company declined to provide a 2005 forecast.
Earlier this month Wet Seal closed a $31 million stock sale to help fund its turnaround bid.
Meanwhile, the company said it plans to refile its annual report for the 12 months ended Jan. 31, 2004 and its quarterly reports for the first three quarters of the year ended Jan. 29, 2005. Wet Seal said its method of accounting for tenant improvement allowances and rent holidays doesn’t agree with accounting guidelines.
The company also plans to restate its income taxes for the second and third quarters of the year ended Jan. 29, 2005.
Shares of Wet Seal were up 9.09% to $4.20 Friday.
