Comparable Store Sales Results Exceed Prior Forecast
Company Raises Earnings Per Share Guidance; Expects to Achieve Profitability in First Quarter 2013
Announces Class Action Lawsuit Settlement
Fiscal First Quarter 2013
|Comparable Store Sales|
|Net Sales||% Change|
|% Change From|
|$ in Millions||Last Year||This Year||Last Year|
E-commerce sales, which are not a component of comparable store sales, increased 4.6% for the period.
"We experienced significant improvement across the business as the
quarter progressed," said
"As of quarter-end, we estimate total inventory dollars per square foot
decreased in the mid- to high-single digits versus the prior year at
"We continue to improve at delivering great product and offering the right blend of regular and promotional pricing, supported by more compelling in-store marketing and merchandise presentation. The customer is responding well and returning to the Wet Seal brand more quickly than anticipated, which has enabled us to stabilize the business and exceed our financial forecasts in the first quarter. We are also making progress at Arden B, achieving slightly positive comps for the period. The improvements we've made year-to-date, along with the recent appointment of a new GMM for this division, make us optimistic that we can reinvigorate the Arden B brand."
Based on the strength of sales and margins, the Company raised
expectations for the first quarter of fiscal 2013. The Company now
expects earnings per diluted share of
Class Action Lawsuit Settlement
Last night, in the
While the Company maintains that it has a strong track record of hiring, promoting and retaining a diverse work force, Wet Seal's new leadership approached the Plaintiffs to collaborate on best practices and a no-fault resolution of the case. This collaboration has played an important role in redefining the Company and positioning it for success.
"From the moment I became CEO of
Under the agreement, the Company agrees to post open positions, implement new selection criteria and interview protocols, revamp its annual performance reviews and compensation structure, add regional human resources directors, implement more diversity and inclusion communications and training for field and corporate office employees, and enhance its investigations training and processes. The Company also has reflected its commitment to use diverse models in its marketing and to partnerships with organizations dedicated to the advancement and well-being of African Americans and other diverse groups.
Additional information about the Company's commitment to diversity and
First Quarter Conference Call Information
The Company will host a conference call to discuss first quarter fiscal
2013 financial results on
To participate in the call, please dial (877) 407-3982 or (201)
493-6780. A broadcast of the call will also be available on the
Company's web site at www.wetsealinc.com.
A replay of the call will be available through
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,
statements that relate to the Company's estimated fiscal 2013 first
quarter earnings guidance and estimated quarter-end inventory levels, as
well as 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
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