Fashion retailer Wet Seal same-store sales slide 4% in June
06 Jul '06
2 min read
Leading specialty retailer to young women The Wet Seal Inc reported that comparable store sales decreased 4.0 percent for the five-week period ended July 1, 2006, compared to a 59.3 percent increase for the same period a year ago.
These results are in line with guidance provided by the Company at the end of May, when it indicated it expected a mid-single digit decrease for the month. Net sales for the five-week period ended July 1, 2006, were $48.0 million, compared with net sales of $49.2 million in the same period last year, a decrease of 2.5 percent.
Joel Waller, chief executive officer of The Wet Seal, Inc., commented: "At the Wet Seal division, our inventory position in key fashion categories improved as we moved through the month. As we received this merchandise, we saw improvements in our comparable sales and we are comfortable with the composition of our inventory at Wet Seal as we enter the back-to-school season. We have also started to see sales improvements at Arden B, with encouraging sell-through of inventory on recent purchases in the woven top and dress categories."
For the month of July, the Company indicated it expects a low single-digit increase in comparable store sales, reflecting a continuation of recent trends and a relatively tough comparison to the 50.9 percent increase in comparable sales last July.
Additionally, the Company indicated that in June it repurchased 200,000 shares of its common stock under an existing share repurchase program for a total cost of $923,500. As of July 1, 2006, the Company has authorization to repurchase up to 4,128,100 additional shares under the program. Repurchases are at the option of the Company and can be discontinued at any time.
Headquartered in Foothill Ranch The Wet Seal is a leading specialty retailer of fashionable and contemporary apparel and accessory items. At month end, the Company operated a total of 403 stores in 46 states, the District of Columbia and Puerto Rico, including 311 Wet Seal stores and 92 Arden B stores.
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