NEW YORK — Wet Seal Thursday became the third teen retail firm to pull back earnings estimates based on sluggish July sales.
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Anemic sales, primarily in Florida and Texas, will pull Wet Seal Inc.’s comparable-store sales down into the mid-single-digit range in July, while the firm’s second-quarter earnings per share will be up to a nickel below Wall Street’s estimates.
The Foothill Ranch, Calif.-based firm said the softness in Florida was due to a year-ago sales-tax promotion that was not repeated. Texas’ shortfall was attributed to a later start for the back-to-school season.
While analysts were expecting Wet Seal to post second-quarter earnings of 17 cents, the firm projected they will be in the 12- to 14-cent range. Wet Seal earned 12 cents a share during last year’s second quarter after adjusting for May’s three-for-two stock split.
Shares of the firm dropped $2.71, or 17.3 percent, to close at $13 in Nasdaq trading Thursday.
As reported, Gadzooks and Hot Topic also pulled back earnings estimates earlier this week.