Wet Seal Q2 Comps. Up 3.7%; Sees Q2 EPS Within Prior Range

(RTTNews) - Specialty retailer The Wet Seal, Inc.(WTSL), Thursday reported positive comparable store sales of 3.7 percent for the 13-week period ended August 3, compared with negative comparable store sales of 11 percent last year. Net sales for the period increased 1.5 percent to $137.2 million. The company said the E-commerce sales were approximately flat for the period.

While sales trends softened during the latter months of the period, the company said, it generated positive comparable store sales each month of the quarter and achieved an improved blend of regular and promotional pricing, enabling it to generate a substantial increase in merchandise margin and deliver on previously announced expectations for earnings improvement

The company also said it has completed its $25 million share repurchase program, under which it repurchased a total of about 5.5 million shares for a total cost of $25 million. During the second quarter ended August 3, the company repurchased about 4.3 million shares for a price of $21.4 million.

For the second quarter, the company now expects to report earnings per share of $0.01, excluding non-cash asset impairments. This is in line with the previously announced guidance range of $0.00 - $0.02.