NEW YORK — Wet Seal Thursday became the third teen retail firm to pull back earnings estimates based on sluggish July sales.
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.