Wet Seal ( WTSLA) reported a narrower fourth-quarter loss amid improved sales and margins, but Wall Street appeared unimpressed with the retailer's continued work at a turnaround. The trendy apparel chain reported a loss of $2.8 million, or 5 cents share, compared to the loss of $47.8 million, or $1.31 a share, it reported for the same quarter a year ago. The latest results included a bevy of one-time expenses, including $6.8 million in compensation charges, $3.1 million in interest charges related to conversions of its convertible notes and $600,000 in asset impairment charges. The year-earlier results were also weighed down by charges, including $16.4 million in store-closure costs. Analysts, on average, were expecting a profit of 3 cents a share, according to Thomson First Call. Analyst estimates typically exclude one-time charges. Sales increased to $141.4 million from $119.2 million, as a 44.6% surge in same-store sales offset the effect of store closures. "Operating income before non-cash stock compensation expense was $7.4 million, or 5.3% of net sales in the fourth quarter, and represents a substantial improvement from recent results," Wet Seal said in a statement. "We were pleased to see improvements in merchandise margins due to a significantly lower overall markdown rate that resulted from stronger product assortment," the company continued. "Our primary goal in fiscal 2006 is to make further improvements in operating income rates, and we now have ample evidence that we are in a position to begin to open new locations to drive growth in sales and profits." The company, in another sign that its restructuring is moving along , said it plans to add 20 to 25 new stores this year. Wet Seal also said it will begin increasing its store count annually between 15% and 20% beginning in 2007. For 2006, Wet Seal expects same-store sales to increase in the mid-single digits. It didn't provide any earnings guidance. Shares of Wet Seal recently were down 28 cents, or 4.7%, to $5.70 in after-hours trading.