FOOTHILL RANCH, Calif. (AP) — Wet Seal expects to report a bigger fourth-quarter loss than previously projected due to lower-than-expected sales and more promotional activity than it had anticipated.
The retailer also announced Thursday that fiscal fourth-quarter sales at stores open at least a year dropped 16.5 percent, hindered by weakness at its Arden B and namesake stores.
This figure is a key indicator of a retailer's health. It excludes results from stores recently opened or closed.
CEO John D. Goodman said in a statement that the fourth quarter was tough in part because of weak mall traffic, a highly promotional environment in the teen sector and certain products not received favorably by its customers.
Wet Seal Inc. said that it now foresees a fourth-quarter loss of about 24 cents per share, before non-cash asset impairments. Its prior guidance was for a loss of 14 cents to 17 cents per share.
Analysts polled by FactSet predict a loss of 17 cents per share.
Total revenue for the fourth quarter fell to $124.8 million. Wall Street is looking for $136.8 million.
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