Women's retailer Wet Seal (WTSLA) is drowning in its own red ink -- with shares of the retailer tumbling more than 17% on Friday to $3.04, a day after the company reported a 44% decline in quarterly earnings and said its second-quarter earnings would miss Wall Street's expectation.
In the first quarter, the company earned $5 million, or 5 cents per share, compared with $8.9 million, or 9 cents per share, a year earlier. Analysts expected the company to earn 4 cents.
Sales fell 7% to $132 million from $142.4 million a year earlier, hurt by a difficult retail environment and inventory issues.
While total comparable sales tumbled 7.3%, the company is seeing early signs of a turnaround at its Arden B chain.Wet Seal forecasts second quarter earnings in the range of 2 cents to 5 cents a share. Analysts expect a profit of 8 cents. The company also predicts same-store sales will slip between 7% and 10%.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV