by Christopher Freeburn | May 28, 2014 12:00 pm
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.
During 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.
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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