The Wet Seal Inc, a leading specialty retailer to young women, announced results for its second fiscal quarter ended August 4, 2007 and provided guidance for its third fiscal quarter.
Financial Results:
Net income for the quarter was $6.8 million, or $0.07 per diluted share. These results compare to prior year second quarter net income of $4.4 million, or $0.04 per diluted share.
The prior year results include a benefit to sales and gross margin of $1.4 million associated with a customer loyalty program adjustment and a $1.1 million reduction to expense for a decrease in the fair value of performance shares granted to a consultant formerly used by the Company.
As previously announced, net sales for the 13-week period ended August 4, 2007 were $143.3 million compared to net sales of $129.5 million for the 13-week period ended July 29, 2006.
Included in net sales for the 13-week period ended July 29, 2006 is $1.4 million in sales recognized as a result of adjustments made for expired program awards under a customer loyalty program.
Comparable store sales for the 13-week period ended August 4, 2007 decreased 1.7%. The Company reported a 2.2% comparable sales decrease for the 13-week period ended July 29, 2006.
Joel Waller, chief executive officer, commented, "Although sales in the second quarter were somewhat lower than original guidance, we were again able to deliver earnings near the upper end of our original estimate. Increasing product margins, a positive contribution from new stores and tight cost management resulted in an over 50% increase in net income from that achieved in the second quarter last year.
marketing@alchempro.com
