Debt Charges Sink Wet Seal

Wet Seal (WTSLA Quote) served up another round of strong sales gains for its first quarter, but the retailer's losses widened on higher interest expenses related to convertible-note offerings.

The mall-based teen-apparel chain posted a loss Monday of $13.7 million for the first quarter, compared with a loss of $8.6 million, or 23 cents a share, a year earlier. The results included a bevy of charges related to the company's ongoing turnaround that has been financed by hedge fund SAC Capital. On a per-share basis, the loss narrowed to 22 cents from 23 cents due to a higher number of shares outstanding.

Minus the interest and debt-related charges, Wet Seal earned $8 million, or 9 cents a share. Analysts had an average estimate for earnings of 5 cents a share, according to Thomson First Call. ...