Wet Seal: WTSL Stock Sinks on Weak Outlook

Its first-quarter loss matched Wall Street forecasts

   

Wet Seal: WTSL Stock Sinks on Weak Outlook

Shares of Wet Seal (WTSL) tumbled more than 12% in Wednesday morning trading after the apparel retailer issued disappointing second-quarter guidance and posted lower-than-expected first-quarter sales.

Wet Seal 1 300x190 Wet Seal: WTSL Stock Sinks on Weak OutlookDuring the first quarter, Wet Seal swung to a net loss of $21.8 million, compared to a profit of $3.1 million in the year-ago period. Adjusted EPS showed a loss of 18 cents, which matched Wall Street expectations, RTT News notes.

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First quarter sales at Wet Seal were $116.7 million, down from $140.4 million in the prior-year period. That fell short of the $117.46 million in Wet Seal sales that analysts were looking for.

For the current quarter, Wet Seal said it anticipates an adjusted loss of between 9 cents and 12 cents per share. That’s worse than the loss of 4 cents per share that analysts had forecast. Second-quarter same-store sales are predicted to fall by between 8% and 11%.

On Tuesday, Wet Seal stock closed at $1.01 per share.

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Article printed from InvestorPlace Media, http://investorplace.com/2014/05/wet-seal-wtsl-stock-sinks-weak-outlook/.

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