Shares of Foothill Ranch-based Wet Seal Inc. were higher Friday, a day after the mall clothing retailer reported a better than expected profit and offered an outlook in line with expectations.
Wet Seal’s stock was up more than 4% in early New York trading before pulling back to about a 2% gain at recent check.
The company has a market value of $460 million.
On Thursday, Wet Seal reported an adjusted profit for the three months through January of $10.2 million, up 11% from a year earlier and topping the $8.1 million expected on average by analysts.
Sales were down 2% to $151 million, in line with the $151.8 million expected by Wall Street.
For the current three months through April, Wet Seal said it forecasts a profit of $4.1 million to $5.1 million. At the high end, Wet Seal’s outlook matches what Wall Street had been expecting.
Sales are seen coming in at $138 million to $140 million. Analysts had been expecting sales of $136.9 million.
The company runs 504 stores, including 424 Wet Seal stores for teen girls and 80 Arden B. stores for young women.
Wet Seal’s results reflect an ongoing turnaround.
In February, same-store sales—a measure of sales growth at stores open at least a year—rose 4.7% at Wet Seal, with gains at both of its chains.
The monthly increase was the first in two years for the company.
The company is seeing “continued momentum in our turnaround of the Arden B. business and progress with merchandising improvements at Wet Seal,” Chief Executive Ed Thomas said.
On Friday, a Piper Jaffray analyst said Wet Seal is benefiting from “broader assumptions for steady gains in sales trends and improving consumer confidence.”
