Mar 26, 2010
Wet Seal fourth quarter profit tops Street; shares rise
Mar 26, 2010
Wet Seal Inc (WTSLA.O) posted a higher-than-expected adjusted fourth-quarter profit, helped by strong same-store sales at its Arden B division, and forecast first-quarter sales above market expectations.
Wet Seal womenswear - Photo: www.wetseal.com
The specialty retailer, which runs the Arden B chain in addition to its namesake stores, earned $80.8 million, or 79 cents a share, compared with $4.3 million, or 4 cents a share, a year ago.
The net income includes a non-cash tax benefit to of $71.3 million.
Excluding items, it earned 10 cents a share.
Revenue fell 2 percent to $151.0 million.
Analysts on average were looking for a profit of 8 cents a share, before items, on revenue of $151.9 million, according to Thomson Reuters I/B/E/S.
The Foothill Ranch, California-based company forecast a first-quarter profit of between 4 cents and 5 cents a share on revenue of between $138 million and $140 million.
Wet Seal, which sells apparel and accessory items, primarily for female customers aged 13 to 35 years, forecast a same-store sales growth of between 2 and 4 percent for the first quarter.
Shares of the retailer were trading up 7 percent at $4.99 in post-market trade. They closed at $4.68 Thursday 25 March on Nasdaq.
(Reporting by Vidya Lakshmi in Bangalore; Editing by Maju Samuel)
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