Home breadcru News breadcru Company breadcru Wet Seal reports Qtly net loss of $2.8 mn

Wet Seal reports Qtly net loss of $2.8 mn

24 Mar '06
3 min read

Gross profit increased to $47.6 million from $14.6 million in the prior year, and as a percent of sales, increased 21.4 percentage points to 33.6 percent.

Selling, general and administrative ("SG&A") expenses were $46.3 million, or 32.8 percent of sales, and included $6.8 million of non-cash stock compensation. Excluding non-cash compensation, SG&A expense was $39.6 million, or 28.0 percent of sales, a decrease of 6.8 percentage points from the comparable percentage of sales for the prior year period.

Current year operating expense includes a $0.6 million asset impairment charge versus a $1.0 million charge in the prior year. The charges in both periods were a result of management's review of the historical and current operating performance of its stores and their related carrying values. This review indicated that it was unlikely the Company would recover the carrying value of certain assets.

The Company has discontinued recognizing income tax benefits until it determines it is more likely than not that it will generate sufficient taxable income to realize its deferred income tax assets.

During the 13-week period ended January 28, 2006, the Company opened one Wet Seal store and closed two Wet Seal stores and one Arden B. store. At January 28, 2006, the Company operated 308 Wet Seal stores and 92 Arden B. stores.

On March 23, 2006, the Company repaid its $8 million term loan that had a scheduled maturity date of May 27, 2007.

Headquartered in Foothill Ranch, California, The Wet Seal, Inc. is a leading specialty retailer of fashionable and contemporary apparel and accessory items. The Company currently operates a total of 400 stores in 46 states, the District of Columbia and Puerto Rico, including 308 Wet Seal stores and 92 Arden B. stores.

The Wet Seal Inc

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