Wet Seal Inc.’s new chief executive, former Tilly’s Inc. exec Edmond Thomas, starts work this month. He’s got a three-year contract and lots to do.
The job isn’t new to Thomas. He was Wet Seal’s president and chief operating officer during the company’s more prosperous times, 1992 to 2000.
Chief Executive Joel Waller, who had been seen as the turnaround guy, resigned from the post in May and also stepped down from his chairman duties. His contract doesn’t expire until February.
Wet Seal also has a new chief financial officer. Steve Benrubi, the company’s controller since 2005, replaced John Luttrell, who resigned last month. Luttrell now is chief financial officer for Old Navy, a division of Gap Inc.
Wet Seal’s stock has lost nearly half of its value in the past year and the company counts a recent market value of about $300 million.
The Foothill Ranch company lowered its expectations for the third quarter. It now expects to either break even or to post a gain of about $1.9 million. That’s down from an earlier profit forecast of $6.5 million to $9.3 million.
Analysts were looking for a profit of about $8.4 million in the quarter.
Wet Seal also lowered forecasts for September and October same-store sales.
The retailer still plans to continue opening new stores this year. Waller, who has said the stock is undervalued, has predicted the company will double in size during the next four to five years.
A Wet Seal store is set to open at the Westminster Mall. The company, which has 467 stores altogether, also operates 93 Arden B. stores.
Checking in with local middle school girls, they say they don’t shop at Wet Seal. Hollister, Abercrombie & Fitch, Abercrombie,the brand’s store for younger kids,and Urban Outfitters are the more popular stores.
It wasn’t long ago when Abercrombie was out of fashion. But never as much as Wet Seal.
Both of Orange County’s one-time star clothing retailers, Anaheim-based Pacific Sunwear of California Inc. and Wet Seal, have been struggling to reinvent themselves.
PacSun is getting a remodel at Fashion Island, as are several other PacSun stores. The stores are closed during the revamp.
Showing its strength, rival Urban Outfitters just opened its 9,800-square-foot store at Fashion Island, across from American Rag Cie.
There’s other buzz in the retail community: Many are doing away with reporting monthly same-store sales,sales at stores open at least a year,and going quarterly, more telling of overall trends and less of a hassle for retailers.
Among the stores eliminating monthly reporting are Bebe Stores, Gymboree, Dress Barn and Talbots.
Wall Street uses monthly same-store comparisons to measure a retailer’s vitality.
At least one analyst, Eric Beder at Brean Murray, Carret & Co., likes the idea of retailers going quarterly and says more will follow.
Bellagio at Orchard
The Bellagio Spa & Salon opened at Orchard Hills Village Center in Irvine. In addition to spa services, the salon will sell jewelry from France and Italy, clothing and accessories.
Fresh & Easy
Britain’s Tesco PLC new Fresh & Easy Neighborhood Market stores opening in the U.S. are promising “Whole Foods quality at Wal-Mart prices,” according to a British newspaper.
Tesco has nine stores planned for OC.
Among those is a store on Beach Boulevard in Huntington Beach.
Green Tenant
Environment Furniture Inc., which uses recycled wood, announced its opening at the South Coast Plaza on cardboard.
South Coast Plaza launched its month-long effort, in partnership with the Italian Trade Commission, to promote its Italian retailers with art, fashion shows and food.
Onto L.A.’s Auto Show
The Orange County Auto Show is over. Next up, the L.A. Auto Show at the Los Angeles Convention Center Nov. 16 to 25.
The show, which has more debuts and concept autos than the OC show, will be open to media for two days. The OC show, owned by the local dealers’ association, has been carving out a consumer niche.
About 14 autos will debut worldwide at the Los Angeles show and there will be 30 North American debuts. Lamborghini, Lexus and Jaguar will introduce new models there.
At the North American Auto Show in Detroit in January, Fisker Coachbuild LLC and Quantum Technologies, both in Irvine, will be debuting a hybrid luxury auto. Fisker, which builds high-end autos, expects to sell them for less than $100,000.
Fletcher Charity
This year’s Jones Cup Golf Tournament, sponsored by Fletcher Jones Motorcars of Newport Beach, included a presentation to Lula Halfacre, widow of jeweler Marion Halfacre, who died earlier this year. Lula owns Traditional Jewelers at Fashion Island.
Fletcher Jones’ general manager Garth Blumenthal presented a $5,000 donation to Lula to go toward Halfacre’s favorite charity, the Cystinosis Research Foundation’s Natalie’s Wish Fund. Cystinosis is a rare disease that destroys cells.
Meanwhile, Fletcher Jones and other Mercedes-Benz dealers are teaming up again with Saks Fifth Avenue for the annual “key to the cure” fundraiser for breast cancer. Saks is donating 2% of its sales from Oct. 18 to 21 and Saks at South Coast Plaza will be displaying a special edition Mercedes 2008 C350. Proceeds from the sale of that model will go toward breast cancer research with a goal of hitting $1 million.
Only 1,000 “key to the cure” cars are made. Fletcher, as the largest Mercedes-Benz dealer, gets the largest number to sell.
