Wet Seal reports weak July sales as new styles disappoint
Photo: Wet Seal
July same-store sales at the company fell 15.6 percent, below analysts expectations of a 14 percent decline, according to Thomson Reuters data.
The company's move away from fast fashion merchandising practices has hurt results at both its namesake and Arden B stores in the past few quarters. Higher prices for many products has also put off shoppers.
The company has been struggling to woo fashion-conscious teenagers with new styles, reflected by lackluster sales of its assortment of tops.
The company, which also sells accessories such as hats, watches and jewelry, forecast an adjusted loss of 6 to 7 cents. Analysts on average were expecting a loss of 6 cents per share, according to Thomson Reuters I/B/E/S.
The company said it expects sales of $135.3 million for the quarter, below analysts' expectations of $136.2 million.
Wet Seal had said last week it was in talks with major shareholder Clinton Group after the investor called for a sale of the company.
Shares of the Foothill Ranch, California-based company, closed at $2.77 on Wednesday on the Nasdaq.
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