Wet Seal Q2 Profit Meets Estimate; Issues Q3 Outlook

(RTTNews) - Wet Seal Inc. (WTSL) Tuesday reported second-quarter net income of $1.0 million, or $0.01 per share, compared to a net loss of $12.4 million, or $0.14 per share in the comparable quarter last year.

Adjusted net income for the quarter was $1.2 million, or $0.01 per share, compared to an adjusted net loss of $5.8 million or $0.07 per share in the prior year. On average, six analysts polled by Thomson Reuters expected the company to earn $0.01 per share for the quarter. Analysts' estimates typically exclude special items.

Meanwhile, net sales for the latest second quarter fell to $137.25 million from $135.26 million last year, while five analysts estimated revenues of $137.88 million for the quarter.

Consolidated comparable store sales increased 3.7%, including an increase of 3.9% for Wet Seal and an increase of 2.0% at Arden B.

Looking forward to the third quarter, the company expects net loss to be in the range of $0.02 per share and $0.03 per share and net sales between $135 million to $138 million. The Street currently estimates breakeven per share and revenue of $137.04 million for the third quarter.

The company expects comparable store sales increase in the mid-single digits, versus an 13.5% decrease in the prior year quarter.