Foothill Ranch-based mall retailer Wet Seal Inc. saw a 3.6% increase in sales at stores open at least a year in January and cut its profit outlook for the recently ended quarter.
The company now sees profits for the quarter through January at $7.7 million to $8.7 million, down from an earlier projection of $12.5 million to $14.8 million.
The news sent Wet Seal’s shares lower in trading Thursday.
Wet Seal blamed slow sales at its Arden B chain of clothing stores for young women.
“At Arden B, our sales were less than expected even with aggressive promotion of remaining holiday season product,” Chief Executive Joel Waller said.
The company continues to cut prices and send unsold clothes to clearance centers, Waller said.
Wet Seal runs of 430 stores, including 338 Wet Seal stores for teen girls and 92 Arden B stores.
For February, the company said it projects same-store sales growth in the low single digits.
