Foothill Ranch-based mall retailer Wet Seal Inc. reported mixed results for the recently ended quarter and offered an outlook for the current one that was below what Wall Street had been expecting.
The company, which runs 508 clothing stores for teen girls and young women, reported a profit of $1.6 million for the three months through July 31.
That was down slightly from Wet Seal’s comparable adjusted profit from a year earlier but on target with what analysts were looking for on average.
Revenue came in at $131.5 million, down 3% from a year earlier and shy of the $133.6 million expected by Wall Street.
Same-store sales, or sales at stores open for at least a year, fell 4.3% in the quarter.
Both of the companies chains, Wet Seal for teen girls and Arden B. for young women, saw same-store sales drops in the quarter.
The company added 10 Wet Seals in the quarter for a total of 432. Three Arden B. stores were added for a total of 76.
Wet Seal’s results reflect a market where retailers still are cutting prices and shoppers are inconsistent in their spending, according to Chief Executive Ed Thomas.
For the current three months through October, Wet Seal offered a profit and sales outlook that fell short of what analysts had been expecting.
Profits are seen coming in at $800,000 to $2.4 million, versus the $4 million Wall Street had been looking for.
Sales are seen coming in at $139 million to $144 million, versus $141.5 million a year earlier and the $148 million analysts had in mind.
The company is looking beyond the difficult retail market today with plans for more stores in coming months and next year.
For the 12 months through January, the company plans to add another 28 stores—25 Wet Seals and three Arden B. stores.
The company plans to step up its expansion plans next year, opening 60 Wet Seals including some outside of malls in neighborhood shopping centers.
