Update (4:05 p.m.): Updated with Monday market close information.
NEW YORK (TheStreet) -- The Wet Seal (WTSL) continued its decline to a one-year low of $1.25 on Monday after B. Riley downgraded the stock to "sell" from "neutral" and lowered its target price to 50 cents from $2.10. The firm cited the company's weak first-quarter guidance and potentially substantial dilution from the convert deal.
The stock closed down 18.71% to $1.26, 29 cents less than its previous close of $1.55, on Monday.
Last Thursday, the teen apparel retailer reported fourth-quarter results below consensus. Revenue declined 22.8% year over year to $124.8 million, less than the $134.74 million expected from analysts surveyed by Thomson Reuters. Consolidated comparable-store sales dropped 16.5%, which included a 15.4% decline at namesake stores and a 25% decrease at Arden B. The net loss of 23 cents a share was a penny narrower than analysts' expectations.
For the first quarter, The Wet Seal expects net loss in the range of 16 cents to 19 cents a share, much wider than the consensus estimate of a loss of 5 cents a share. This guidance is based on expected comparable-store sales in the negative mid- to high-teens.
