The Wet Seal, Inc. Announces CEO Departure; Updates Second Quarter EPS Guidance
FOOTHILL RANCH, Calif.--(BUSINESS WIRE)--
The Wet Seal, Inc. (Nasdaq:WTSLA), a leading specialty retailer to young
women, announced today that its Board of Directors has terminated the
employment of the Company's Chief Executive Officer, Susan McGalla,
effective immediately. The Board is commencing a search for a new Chief
In the interim, while the search process is conducted, the Company has
formed an Office of the Chairman, led by Hal Kahn, the Company's
non-executive chairman of the Board. Also during this interim period,
Ken Seipel, the Company's President and Chief Operating Officer, and
Steve Benrubi, the Company's Chief Financial Officer, will be
co-principal executive officers and members of the Office of the
Chairman until a new CEO has been selected by the Board. The Board
expressed its confidence that under the leadership of Mr. Kahn and the
members of senior management, the Company will have in place a capable
leadership team during the search process.
Through the third week of the fiscal month ending July 28, 2012, or
fiscal July, the Company's comparable store sales for fiscal July have
declined between 13% and 14%. For the second fiscal quarter, the Company
expects comparable store sales to decline between 10% and 11%, which is
at the low end of its initial guidance range.
The Company currently estimates second quarter loss before non-cash
asset impairment and CEO severance costs will be between $0.06 and $0.07
per diluted share, as compared to its initial guidance of a loss between
$0.03 and $0.06 per diluted share. The Company is evaluating certain Wet
Seal and Arden B stores for potential non-cash asset impairments and
will also be incurring CEO severance costs during the quarter. Asset
impairment and CEO severance costs were not included in prior guidance
and will increase the loss per diluted share for the quarter.
About The Wet Seal, Inc.
Headquartered in Foothill Ranch, California, The Wet Seal, Inc. is a
leading specialty retailer of fashionable and contemporary apparel and
accessory items for young women. As of June 30, 2012, the Company
operated a total of 553 stores in 47 states and Puerto Rico, including
470 Wet Seal stores and 83 Arden B stores. The Company's products can
also be purchased online at www.wetseal.com
For more Company information, visit www.wetsealinc.com.
SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT
OF 1995: This news release contains forward-looking statements as that
term is defined in the Private Securities Litigation Reform Act of 1995.
These forward-looking statements include, but are not limited to, the
Company's comparable stores sales and loss per share expectations for
its fiscal second quarter and any statements that relate to the intent,
belief, plans or expectations of the Company or its management. All
forward-looking statements made by the Company involve material risks
and uncertainties and are subject to change based on factors beyond the
Company's control. Accordingly, the Company's future performance and
financial results may differ materially from those expressed or implied
in any such forward-looking statements. Such factors include, but are
not limited to, those described in the Company's filings with the
Securities and Exchange Commission. This news release contains results
reflecting partial year data and non-fiscal data that may not be
indicative of results for similar future periods or for the full year.
The Company does not undertake to publicly update or revise its
forward-looking statements even if experience or future changes make it
clear that any projected results expressed or implied therein will not
The Wet Seal, Inc.
Steven H. Benrubi
Source: The Wet Seal, Inc.
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