LOS ANGELES — Teen apparel retailer Wet Seal Inc. said on Monday that it will take a $2 million cash charge and a $13.3 million noncash charge in the second quarter related to a consulting agreement with turnaround specialist Michael Gold.
The Foothill Ranch, Calif.-based company rebounded after Gold came aboard in November and new chief executive officer Joel Waller — the second ceo in less than two years — took the helm in February. Until March, the company had been in a decline that started in 2002, when same-store sales slipped 5.6 percent compared with an increase of 4.7 percent the previous year.
Wet Seal, which has said it is modeling its business after hot Los Angeles-based teen retailer Forever 21, announced earlier this month it will pay Gold $4 million over two years. Gold is a well-known Canadian retailer and owner of Stitches, a Toronto-based, privately owned low-priced juniors' clothing chain with more than 400 locations in Canada and the U.S.
The company said the $2 million charge reflects Gold's compensation through July 30.
In addition to 2 million restricted shares that will vest on Jan. 28, Gold also will receive two tranches of performance shares of 1.75 million each. Charges for those will be recorded over the 30-month period ending Jan 1, 2008, on a variable basis. And the amount and timing of the charges will depend on the stock's fluctuations.
The company this month reported that same-store sales for the five-week period ended July 2 increased 59.3 percent compared with a decline of 10.1 percent for the same period a year ago. Net sales for the second quarter ending July 2 were $193 million compared with net sales of $172.8 million for the same period last year — an 11.7 percent increase.
Wet Seal operates 397 stores, including 306 Wet Seal stores and 91 Arden B. stores.
EXCLUSIVE: @tomford is opening its first-ever beauty store. The boutique, which opens November 20 in London’s Covent Gardens, was designed with the over the top glam Ford is known for. Read the full story on WWD.com, link in bio. #wwdbeauty #wwdnews (📷: Simon Wagner) #TomFordBeauty
New York-based DJ @harleyvnewton threw a party to celebrate the holiday collection of her dress and pajama line @hvn at the Ladurée Beverly Hills. It Girls @katebosworth, @rashidajones and more joined in on the fun, which included cocktails, croque monsieur sandwiches and a photo booth. #wwdfashion (📷: Owen Kolasinski/BFA.com)
For the holidays, @Burberry partnered with 20-year-old artist @blondeymccoy on a series of three outdoor murals in downtown Manhattan. The murals are McCoy’s interpretation of a Christmas eve party, the idea of charity and the spirit of family. His third mural, pictured here, is the most personal. The image depicts McCoy’s grandparents and father in London’s Trafalgar Square in the Seventies. “My work often features lots of sentimental objects.” #wwdeye
For spring 2018, designers applied bold colors and cartoonish motifs on everything from sneakers and belts to key chains. See all the top men’s accessories trends on WWD.com. #wwdtrends (📷: George Chinsee; Prop Styling by @rnasti; Market Editor: @luiscampuzano)
The @dior-sponsored @guggenheim international gala pre-party has a history of drawing cool-girl musical acts to serenade the crowd –– and last night was no exception. @haimtheband performed songs both new and old, and lured a star-studded audience with the likes of Rebecca Hall, Kate Mara, Mamoudou Athie and more. #wwdeye (📷: @lexieblacklock)
In a partnership between the @metopera and the @englishnationalopera, “Marnie” was born. The opera, with costumes sponsored by @mrporterlive, is an adaptation of the 1961 thriller by Winston Graham. Arianne Phillips, who created the costumes, is no rookie: She’s styled Madonna for her tours and created costumes for a myriad of films in the past. Read WWD’s interview with Phillips, where she talks about her inspiration for the opera’s costumes on WWD.com #wwdfashion
@barneysnyc took a different approach to their holiday windows this year. Instead of Christmas decor, Barneys tapped @thehaasbrothers to tell a story of positivity, gratitude and inclusivity via heartwarming silliness and humor. “It’s about kids and it’s about coming together and being family and loving each other,” said Simon Haas. #wwdfashion (📷: @joshuascottphoto)
Beauty influencer @kandeejohnson makes her foray into hair care with a collaboration with @ogx_beauty — making it the first time that OGX has teamed up for a product creation. The collab includes shampoos and conditioners in three scents. At 39 and a mom, Johnson is a different profile than the emerging social media stars, but is considered one of the pioneers of the digital beauty influencer world. Read WWD’s interview with her on wwd.com, including the strangest beauty product she’s ever tried #wwdbeauty