The Wet Seal falls on lowered Q3 guidance
The Wet Seal, Inc. (Nasdaq: WTSLA) shares are down after the women’s clothing retailer warned that its third-quarter results will miss expectations, due to poor sales. The Foothill Ranch, Calif.-based company lowered its third-quarter earnings guidance to a range of nil to $0.02 per share, from previous guidance of $0.07 to $0.10 per share. Analysts, on average, expect $0.09 per share.
"During September, we have continued to experience lower year-over-year average store transaction counts,” CEO Joel Waller said in a statement. “This, along with higher than originally expected promotional activity, has resulted in lowered comparable store sales and earnings expectations for the third quarter."
The company also said it expects October same-store sales to be lower by 2% to 6%, compared with last year.
In morning trading, shares of WTSLA fell 16.54%, or $0.66, at $3.33. Over the last 52 weeks, shares have ranged from $3.23 to $7.60.
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