Foothill Ranch-based mall retailer Wet Seal Inc. said Thursday June sales fell more than expected and forecast that profits for the three months through April could come in at the low end of expectations.
Wet Seal, which runs more than 500 clothing stores for teen girls and young women, said June sales at stores open at least a year fell 3.6%.
Analysts were expecting a same-store sales drop of 1.8%.
Total sales for the month fell nearly 3% from a year earlier to $50.3 million.
Chief Executive Ed Thomas blamed “inconsistent traffic patterns” among shoppers for the bigger than expected decline.
The company’s dominant Wet Seal chain for teen girls saw a 3.7% same-store sales drop. Arden B. stores for young women fell 3.2%
The monthly same-store sales drop was the third in a row for Wet Seal after declines in May and April that reversed gains in March and February.
A tough spring led Wet Seal to caution that profits for the recently ended quarter could come in at the low end of an earlier forecast.
In May, the company said it expects a profit of $2 million to $4 million. Wall Street analysts on average have been expecting a profit of $3 million.
