FOOTHILL RANCH, Calif.--()--The Wet Seal, Inc. (Nasdaq: WTSLA), a leading specialty retailer to young women, reported net sales and comparable store sales for the five-week period ended June 30, 2012, or fiscal June, as follows:
“June sales were in line with our expectations. We maintained sharp promotional levels through the month, as planned, in our efforts to ensure inventories at both Wet Seal and Arden B are well-positioned entering the fiscal third quarter.”
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Susan McGalla, chief executive officer of The Wet Seal, Inc., commented: “June sales were in line with our expectations. We maintained sharp promotional levels through the month, as planned, in our efforts to ensure inventories at both Wet Seal and Arden B are well-positioned entering the fiscal third quarter.
“E-commerce sales declined 5% in June compared to a 17% decrease for the prior year month. June represented the anniversary of our strategic efforts to transition to a higher penetration of full-price selling and better align e-commerce merchandising with our stores. We expect continued stabilization in our e-commerce sales going forward.”
Ms. McGalla concluded, “We continue to expect a fiscal second quarter net loss in the range of $0.03 to $0.06 per diluted share, with comparable store sales also still expected to decline between 7% and 11%.”
The Company also announced today that its Board of Directors is conducting a capital planning review that will include an analysis of the Company’s cash position. The Company regularly conducts such reviews. The Board intends to retain an investment banking firm to assist in its evaluation, as it has done at times in the past.
The Company is announcing the current capital planning review due to multiple recent stockholder inquiries as to the Company’s capital plans. The Board’s capital planning process includes consideration of all factors relevant to the Company’s capital and cash requirements, including projected Company cash levels, Company operating performance, market trading prices and economic trends. There can be no assurance as to the determination to be made by the Board. The Company does not intend to comment further about its capital planning conclusions until the Board’s analysis is complete and it has made a determination, at which time the Company will make a public announcement.
About The Wet Seal, Inc.
Headquartered in Foothill Ranch, California, The Wet Seal, Inc. is a leading specialty retailer of fashionable and contemporary apparel and accessory items. As of June 30, 2012, the Company operated a total of 553 stores in 47 states and Puerto Rico, including 470 Wet Seal stores and 83 Arden B stores. The Company’s products can also be purchased online at www.wetseal.com or www.ardenb.com. For more Company information, visit www.wetsealinc.com.
SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995: This news release contains forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, statements that relate to the Company’s guidance for its second quarter of fiscal 2012, its expected e-commerce sales trend stabilization, and its capital planning review, as well as the intent, belief, plans or expectations of the Company or its management. All forward-looking statements made by the Company involve material risks and uncertainties and are subject to change based on factors beyond the Company’s control. Accordingly, the Company’s future performance and financial results may differ materially from those expressed or implied in any such forward-looking statements. Such factors include, but are not limited to, those described in the Company’s filings with the Securities and Exchange Commission. This news release contains results reflecting partial year data and non-fiscal data that may not be indicative of results for similar future periods or for the full year. The Company will not undertake to publicly update or revise its forward-looking statements even if experience or future changes make it clear that any projected results expressed or implied therein will not be realized.