Tag - WTSLA

Despite reporting decreased sales for September, The Wet Seal Inc. (Nasdaq:WTSLA) got a 5% boost this morning after affirming its previous third-quarter guidance.

The Foothill Ranch, Calif.-based specialty retailer said the before the bell this morning that its net sales fell 3.2% and comparable-store sales 7.5% for the five-week period ended Oct. 4 compared with last year's fiscal September.

Still, it said that relatively strong sales in parts of the country helped the company and allowed it to expect third-quarter earnings per share of between $0.05 and $0.07.

Analysts polled by Thomson First Call on average are expecting earnings per share of $0.06.

By mid-morning, The Wet Seal is at $3.26, up $0.16 from Tuesday's close. The stock has traded between $1.81 and $5.54 during the past 52 weeks.

For detailed price information and news stories on The Wet Seal, click WTSLA.

Teen retailer The Wet Seal, Inc. (Nasdaq: WTSLA) posted a wider-than-expected decline in August comparable same-store sales. Same-store sales slumped 8.7% in the month of August, compared with an increase of 1.7% in the same month last year. Sales were wider than the mean analyst forecast for a decline of 7.5%.

Wet Seal’s Arden B business remained challenged by the ongoing difficult retail environment and by the firm’s inventory management in conjunction with its new merchandising strategy. Total sales declined 1.3% for the month compared with August of 2007.

Shares were halted ahead of the bell. For detailed price information and news stories on Wet Seal, click WTSLA.

Clothing retailer The Wet Seal Inc. (Nasdaq:WTSLA) is down 7% today as much of the youth clothing industry gets hit by a weak economy and low consumer spending. Also, a survey conducted by Capital One and released today said that parents are planning on spending less money on children’s back-to-school clothing this year. The apparel retail industry is down about 1.2% as a whole today. Shares of Foothill Ranch, Calif.-based Wet Seal are down $0.37 at $5. Trading volume is about 400,000 shares below average. Despite today’s downturn, shares of Wet Seal are up more than 114% since January.

Small-cap stocks edged slightly lower shortly after a brief opening bid, pulled down by profit-taking from short-term traders who caught this week’s surge to the highest prices since January. Still, the market managed to dodge several data landmines this morning, as a batch of economic figures were basically in line with expectations. At 10:03 a.m. ET, the Russell 2000 (NYSE:IWM) was down 2, or 0.27%, at 743.55.

The Chicago Purchasing Manager’s Survey came in at 49.1, which was above the forecast at 48.5. Although the reading was slightly above expectations, it had only a muted impact on stock prices as the number was still below 50 for the fourth consecutive month.

Also, the Michigan sentiment survey came in at 59.8, just slightly above the forecast of 59.5, but still at 28-year lows.

Before the opening, the personal income headline figure and the core PCE deflator both were in line with analyst projections, which supported both stocks and bonds in pre-opening activity. The core PCE is considered to be the Federal Reserve’s preferred inflation gauge, and the moderation in the number should allay some inflation fears that have stoked up lately.

Tech stocks were expected to get a lift today from positive earnings news from Dell Inc. (Nasdaq:DELL) and Marvell Technology Group (Nasdaq:MRVL), both of which were seeing impressive  percentage gains this morning after topping earnings estimates overnight. In the financial sector, American Insurance Group (NYSE:AIG) was up 3.3% early after Morgan Stanley upgraded the insurer. Although good news dominated the market so far today, there were some sour notes to be found for large caps, including J. Crew Group (NYSE:JCG), which was off about 20% after reducing guidance and being downgraded by Citigroup.

Month-end window dressing could be a factor in the markets again today, and there could also be a push from some fund managers who are under invested . . .

The Russell 2000 (NYSE: IWM) is declining on news that the strain from the subprime meltdown has spread.

At 12:04 p.m. ET, the small-cap index had retreated 10.53 points, or 1.54%, to 673.21. The Dow Jones Industrial Average (INDU) was off 133.10 points, or 1.09%, to 12,121.89.

Stocks small and large are in the red following news that residential mortgage lender Thornburg Mortgage Inc. (NYSE: TMA) has failed to meet a margin call of about $28 million. Similarly, investment company Carlyle Capital Corp. Ltd. announced before the start of trading that it has also failed to meet a margin call and has received a notice of default from one of the banks that helps finance its portfolio of mortgage securities.

A “margin call” is when banks call in their loans to investors, who are in turn forced to sell off assets to raise cash, leading to a reduction in the price of those assets and more margin calls and losses.

In other news, U.S. retailers generally beat low same-store expectations in February. Leading the way was Wal Mart Stores, Inc. (NYSE: WMT), the world’s largest retailer, which reported a 2.6% increase in same-store sales.

The Russell 2000 (NYSE: IWM) has lost steam following news of a steeper-than-expected decline in pending U.S. home sales.

At 11:53 a.m. ET, the small-cap index had added 0.60 points, or 0.09%, to 693.09. The Dow Jones Industrial Average (INDU) was down 22.68 points, or 0.19%, to 12,177.42.

Pending home sales fell 1.5% in December, the National Association of Realtors reported after the opening.

The Washington, D.C.-based trade organization’s pending home sales index fell to a reading of 85.9 from a downwardly revised level of 87.2 in November. Economists were expecting the measure to decline 1%.

The December 2007 level is 24.2% below the year-earlier level. For of all 2007, the index is at it lowest level ever.

“Existing-home sales have moved narrowly since last September, but when the full impact of higher loan limits for conventional mortgages begins to impact the market there is likely to be a notable rise in home sales and prices,” said NAR chief economists Lawrence Yun in a statement.

News of the decline hit small-cap stocks, which dropped from their morning high above 700 points at about 10:30 a.m. ET and briefly entered negative territory at about 11 a.m. ET.

In other economic news, the day began with news that of weak January sales at U.S. retailers.

The Wet Seal, Inc. (Nasdaq: WTSLA) shares are increasing after the investment bank Piper Jaffray added the teen retailer to its “Alpha List,” a short-term category used to place emphasis on firms whose shares have positive signs, with a $4 price target.

Piper Jaffray said the company’s new management team will explain an aggressive top-line growth plan and cost reduction details at an upcoming investor conference. The investment bank said Wet Seal is one of its “top small-cap ideas” for the first half of fiscal 2009.

In afternoon trading, WTSLA shares are up 6.14%, or $0.14, at $2.42. Over the last 52 weeks, shares have ranged from $1.81 to $6.75.

The Wet Seal, Inc. (Nasdaq: WTSLA) CEO Edmond Thomas said the struggling women’s clothing retailer can drive sales and other improvements through merchandise changes. Thomas made the comments during a midday conference call.

“We see a number of opportunities to improve our assortment planning and size optimization,” Thomas said. “In addition, we can increase average dollar sales by improving our tops to bottoms ratio.”

The chief executive said the company plans to modify store designs and alter its employee compensation plan in an effort to increase sales. Wet Seal also plans to slow its store growth plan from a current 15% to about 5%, with more openings planned for the second half of fiscal 2008, he said. Thomas also said the company is reviewing its IT infrastructure as part of the company growth plan.

“We realize that we have work to do and we are operating in an uncertain macro environment,” Thomas said. “However, I am confident that we are moving in the right direction that will enable us to improve sales and earnings results.”

Before the opening, Wet Seal reported that it swung to a third-quarter loss of $3.3 million, or $0.04 per share, down 238% from a profit of $2.4 million, or $0.02 per share, a year earlier. Analysts were expecting a loss of $0.02 per share. The company said an asset impairment charge of $1.6 million, or $0.02 per share, contributed to the quarterly loss.

The investment gurus have been warning about it all summer and now it’s finally beginning to rear its ugly head. Retailers are starting to show signs of flailing and Charlotte Russe Holding, Inc. (Nasdaq: CHIC) is no exception. The fashion retailer was downgraded today to “neutral” from “outperform” by JP Morgan.

After disappointing results last night from Charlotte Russe’s largest competitor, The Wet Seal, Inc. (Nasdaq: WTSLA), warmer weather and underperforming sales at Charlotte Russe’s California and Florida-based stores, JP Morgan analyst Anna Andreeva said she perceives that September comps for Charlotte Russe will fall short of expectations.

In addition, given that the small cap’s competitor, Wet Seal, is struggling, the analyst thinks Charlotte Russe could miss fourth quarter earnings. She also anticipates management will lower guidance for the first quarter of fiscal 2008. 

Andreeva lowered her estimates today for 2007 and 2008. For fiscal year 2007, ended Sept. 30, the analyst predicts earnings of $1.41, down from previously forecasted $1.45. For fiscal year 2008, Andreeva anticipates earnings of $1.54, down from $1.64. Twelve analysts surveyed by Thomson Financial are on average expecting earnings of $1.45 for 2007, and $1.60 for 2008.

“…Implications of WTSLA news for this competitive fast fashion space and little visibility ahead, we would rather stay on the sidelines,” Andreeva wrote in a research note today.

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.

The Russell 2000 led the descent as U.S. indices fell for the third consecutive day on news of higher yields on government bonds. The Russell 2000 shed 15.89 points, or 1.89%, to finish at 825.32. The Dow Jones Industrial Average dropped 198.94 points, or 1.48%, to 13,266.73.

The yield on the 10-year U.S. Treasury rose to 5.13%, while the 2-year note climbed to 5.03%. The increase, the first time the 10-year note has passed $5 in almost a year.

Foothill Ranch, Calif.-based specialty retailer The Wet Seal, Inc. (Nasdaq: WTSLA) reported this morning that its net income for the first fiscal quarter of 2007 ended May 5 was $7.6 million, or $0.07 per share, compared with a net loss of $14.0 million, or $0.22 per share, in the analogous period of 2006.  That beats analysts’ projected earnings of $0.06 per share.  Nevertheless, the stock has lost $0.17, or 3%, to $5.58.

The following small-cap companies are making news in after-hours trading Monday:

American Science and Engineering, Inc. (Nasdaq: ASEI) reported revenues at $45.9 million for the fourth quarter ended March 31, up 13% from the previous year's quarter. Net income was $0.60 per share, up $0.09 from the comparable period in 2006. Billerica, Mass.-based American Science, a supplier of X-ray inspection systems, was up $2.77, or nearly 6%, in after-hours trading, at $50.75.

The Wet Seal Inc. (WTSLA) said its president and CEO Joel Walter will step down from his positions on Feb. 1, 2008, when his current agreement is set to expire. Foothill Ranch, Calif.-based Wet Seal is an apparel retailer geared to young women. The company will release its first-quarter earnings on Wednesday. Shares of Wet Seal were little changed after the announcement, down nearly $0.03 at $5.72.

Interim study results from the BRITE trial in major depression, presented today at the annual meeting of the American Psychiatric Association, suggest that Aspect Medical Systems' (Nasdaq: ASPM) EEG-based research technology is a "significant predictor of patient response to treatment of depression with a selective serotonin reuptake inhibitor (SSRI) after one week of treatment," the company said. The Norwood, Mass.-based company, which specializes in brain monitoring technology, had planned a conference call for 5:00 p.m. ET. BRITE, an acronym for Biomarkers for Rapid Identification of Treatment Effectiveness, presented the findings at the APA meeting in San Diego. In after-hours trading, shares of Aspect Medical were down $0.11 at $15.66.