This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

The Reasons For The Wet Seal's (WTSL) Double-Digit Losses

NEW YORK (TheStreet) -- Another day, another retailer crushed in a sell-off. After Express  (EXPR - Get Report) fell 22% on Wednesday, Thursday's target was  The Wet Seal (WTSL), which plummeted 14.1% to $2.74 by market close.

The apparel retailer, which reported after the bell Wednesday, posted net sales of $127.7 million, nearly 6% lower than a year earlier and missing Thomson Reuters' consensus by $6.8 million. Net loss of 12 cents a share was as expected.

Comparable-store sales were up 0.8%, which included a 1.7% increase at Wet Seal-branded stores and a 6.7% drop at Arden B.

The Foothill Ranch, Calif.-based business didn't forecast positive earnings over the holiday season. For the fourth-quarter ending January, management expects a net loss between 14 cents and 17 cents a share, much worse than a one-cent profit consensus.

Must Read: Dollar General Surges, Kroger Falls on Earnings Reports

Total sales are expected in the range of $134 million to $137 million. At the top end of guidance, the forecast is 15% lower than a year earlier and $13.2 million less than analysts had hoped for. The company explains the drop as a result of a 13-week quarter, one week less than in 2012. Comparable-store sales are anticipated to drop in the high-single to low-double digits.

"We've had a challenging start to the season, reflecting the difficult macro environment and ongoing softness in mall traffic, which is causing us to maintain a cautious outlook for the remainder of the year," said CEO John Goodman in a statement.

--Written by Keris Alison Lahiff.

Also see: The 10 Drunkest States in America... and the 10 Most Sober.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
WTSL $0.03 -10.76%
EXPR $20.39 0.00%
AAPL $113.29 0.00%
FB $91.01 0.00%
GOOG $630.38 0.00%

Markets

Chart of I:DJI
DOW 16,643.01 -11.76 -0.07%
S&P 500 1,988.87 +1.21 0.06%
NASDAQ 4,828.3250 +15.6170 0.32%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs