NEW YORK (TheStreet) -- Wet Seal (WTSL) stock is tumbling today after reporting first-quarter revenue below estimates and guiding for continued declines in its current quarter. By late afternoon, the nano-cap had dropped 12.6% to 88.3 cents.
Over its April-ended quarter, the retailer reported a net loss of 18 cents a share, inline with analysts' estimates. Revenue slid 16.9% from the year-ago quarter to $116.73 million. Analysts surveyed by Thomson Reuters estimated $117.46 million.
For its second quarter ending July, management expects a net loss between 9 cents and 12 cents a share. That range is based on comparable-store sales dropping 8% to 11%. Analysts expected a net loss of 10 cents a share.
TheStreet Ratings team rates WET SEAL INC as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate WET SEAL INC (WTSL) a SELL. This is driven by multiple weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its poor profit margins, weak operating cash flow and generally disappointing historical performance in the stock itself."
- You can view the full analysis from the report here: WTSL Ratings Report