NEW YORK (TheStreet) -- The Wet Seal (WTSL) plunged to another one-year low of slightly less than $1.08 as of 12:03 p.m. on Tuesday thanks to an analyst downgrade and the company's quarterly results that came up short of analysts' expectations.
B. Riley downgraded the stock to "sell" from "neutral" and lowered its target price to 50 cents from $2.10 on Monday. The firm cited the company's weak first-quarter guidance and potentially substantial dilution from the convert deal.
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.
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