Foothill Ranch-based mall retailer Wet Seal Inc. reported a decline in July sales that was worse than analysts expected.
Wet Seal, which runs 508 clothing stores for teen girls and young women, said July sales at stores open at least a year fell 4.3% from a year earlier.
Analysts were expecting a same-store sales drop of 3.4%.
The monthly drop was the fourth in a row for Wet Seal after declines in June, May and April that reversed gains in March and February.
Wet Seal is undergoing a hot and cold turnaround in which the company has cut costs, remodeled stores and switched out styles faster.
But it still faces challenges from a retail market that’s slow to recover from the downturn and from the ever changing tastes of its fickle target shoppers.
Late last month, Chief Executive Edmond Thomas said he’s leaving the company when his contract expires on Oct. 8. He could stay on longer if a replacement isn’t found by then.
Edmond and the company haven’t elaborated on why Thomas is leaving. He joined Wet Seal in late 2007 and has led big changes at the retailer.
Wet Seal’s total sales for the four weeks through July 31 fell 3.9% to $41.1 million.
For the three months through July, Wet Seal reiterated that profits could come in at the low end of its earlier guidance.
In May, the company said it expects a profit of $2 million to $4 million. Wall Street analysts on average expect a profit of $2 million.
