Wet Seal: WTSL Stock Sinks on Weak Outlook
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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- WTSL: http://studio-5.financialcontent.com/investplace/quote?Symbol=WTSL
- lower-than-expected first-quarter sales: http://www.rttnews.com/2328082/wet-seal-loss-widens-outlook-weak-stock-down-update.aspx?type=bn
- [Image]: http://investorplace.com/wp-content/uploads/2011/05/Wet-Seal-1.jpg
- ARO: Why Aeropostale Stock Is Surging Today: http://investorplace.com/2014/05/aro-aeropostale-stock-surging-sycamore-partners/
- Abercombie & Fitch to Tone Down Stores, Cover Up Models: http://investorplace.com/2014/05/abercombie-fitch-anf-stock/
- TGT Earnings: Another Lousy Quarter Makes Target Stock a Buy: http://investorplace.com/2014/05/tgt-earnings-target-stock/
- WMT — Walmart Profit Miss, Cisco Beat Draw Two Very Different Pictures: http://investorplace.com/2014/05/wmt-earnings-csco/
- M: Macy’s Raises Dividend, Boosts Buyback: http://investorplace.com/2014/05/m-macys-raises-dividend-boosts-buyback/
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