Aug 20, 2009
Wet Seal Q2 profit misses Wall Street view
Aug 20, 2009
Aug 20 (Reuters) - Specialty retailer Wet Seal Inc (WTSLA.O) posted a lower-than-expected quarterly profit on a fall in gross margins and forecast third-quarter earnings below Wall Street expectations.
Wet Seal womenswear - Photo: www.wetseal.com
For the second quarter, Wet Seal, which runs the Arden B. chain in addition to its namesake stores, earned $3.1 million, or 3 cents a share, compared with $10.1 million, or 10 cents a share, a year ago.
Excluding items, the company posted a profit of 2 cents a share, below analysts' average estimate of 3 cents a share, according to Reuters Estimates.
Sales fell 9 percent to $136.4 million. Analysts on average were expecting $136.8 million.
The retailer, whose rivals include American Eagle Outfitters Inc (AEO.N) and Gap Inc (GPS.N), forecast a third-quarter profit of 2 cents to 5 cents a share on sales of $138 million to $142 million.
Analysts on average expect a third quarter profit of 6 cents, before special items, on revenue of $140.7 million.
The retailer forecast a decline of 6 percent to 9 percent in third-quarter same-store sales.
The company said it would open three Wet Seal stores and close one Arden B store.
Shares of Foothill Ranch, California-based Wet Seal closed at $3.32 Thursday 20 August on Nasdaq. (Reporting by Vidya Lakshmi in Bangalore; Editing by Vinu Pilakkott)
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