Wet Seal (WTSL) Q2 Comps Rise 3.7%
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The Wet Seal, Inc. (NASDAQ: WTSL) reported Q2 comps rose 3.7% and net sales rose 1.5% to $137.2 million. The Company expects to report second quarter 2013 earnings per diluted share of $0.01 before non-cash asset impairments, which reflects strong merchandise margin improvement and is in line with previously announced guidance of earnings per diluted share of $0.00 to $0.02.
"We're pleased to see the business return to positive comp store sales, particularly against the backdrop of a challenging retail environment in June and July,” said John D. Goodman, Chief Executive Officer. “While sales trends softened during the latter months of the period, we generated positive comparable store sales each month of the quarter and achieved an improved blend of regular and promotional pricing. This enabled us to generate a substantial increase in merchandise margin versus a year ago and deliver on our previously announced expectations for earnings improvement. We also ended the quarter with inventories well-positioned entering the key back-to-school shopping period.
"Since the beginning of the year, we have made notable progress toward restoring top line growth and improving margins by delivering great product and enhancing our brand positioning. We are continuing to execute against our core fast fashion strategy, while strengthening our marketing programs and customer engagement initiatives, which are enabling us to win back the Wet Seal customer. New leadership in our Arden B division has begun to influence the product assortment, and will have a more pronounced impact on both merchandise and brand positioning beginning in the third quarter."
"We're pleased to see the business return to positive comp store sales, particularly against the backdrop of a challenging retail environment in June and July,” said John D. Goodman, Chief Executive Officer. “While sales trends softened during the latter months of the period, we generated positive comparable store sales each month of the quarter and achieved an improved blend of regular and promotional pricing. This enabled us to generate a substantial increase in merchandise margin versus a year ago and deliver on our previously announced expectations for earnings improvement. We also ended the quarter with inventories well-positioned entering the key back-to-school shopping period.
"Since the beginning of the year, we have made notable progress toward restoring top line growth and improving margins by delivering great product and enhancing our brand positioning. We are continuing to execute against our core fast fashion strategy, while strengthening our marketing programs and customer engagement initiatives, which are enabling us to win back the Wet Seal customer. New leadership in our Arden B division has begun to influence the product assortment, and will have a more pronounced impact on both merchandise and brand positioning beginning in the third quarter."
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