The Wet Seal (WTSLA) Reports 11.1% Slide in June Comps

The Wet Seal, Inc. (Nasdaq: WTSLA) reports total sales for the month of June were $51.6 million, down 9.3% from the same period last year. Same store sales fell 11.1%.

Ed Thomas, CEO of The Wet Seal, Inc., commented: "The retail environment remained very difficult in June, resulting in consolidated comparable store sales that were below our expectations. At our Wet Seal stores, we responded to aggressive promotional selling by our competitors throughout the mall, which challenged business in that division. We were pleased, however, with our progress toward rebalancing inventory mix at Wet Seal and continue to expect to be well positioned by late this month."

Mr. Thomas continued, "In spite of the June comparable store sales decline, we were able to sustain strong merchandise margins at Arden B as a result of continued inventory management discipline and the improved regular price sales mix versus the prior year. We are also encouraged by continued year-over-year growth in transactions per store at Arden B."

Mr. Thomas concluded, "We will maintain conservative inventory levels at both divisions assuming the selling environment remains challenging as we enter the back-to-school season later this month."

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