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) 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.

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.

If you liked this article you might like

3 Retail Stocks Driving The Industry Higher

3 Retail Stocks Driving The Industry Higher

Wet Seal Bankruptcy Filing Leaves Experts Wondering Who's Next

Wet Seal Bankruptcy Filing Leaves Experts Wondering Who's Next

Wet Seal is the Latest Teen Retailer to Seek Chapter 11

Wet Seal is the Latest Teen Retailer to Seek Chapter 11

Stocks Pare Losses But Still Likely to Close Lower for Week

Stocks Pare Losses But Still Likely to Close Lower for Week

Stocks Slide as Weak Wage Growth Not Seen as Barrier to Fed Rate Hike

Stocks Slide as Weak Wage Growth Not Seen as Barrier to Fed Rate Hike