NEW YORK — The Wet Seal, Inc. reported second-quarter earnings of $4.4 million, or 4 cents a diluted share, compared to a loss of $35 million, or 87 cents, last year. The results in the current quarter included a credit to sales of $1.4 million associated with a customer loyalty program; non-cash stock compensation charges of $0.2 million and a store closure reserve adjustment that reduced expense by $0.2 million. Before the effect of the items, income was $3 million, or 3 cents a diluted share. The loss in the prior year included $23.3 million for accretion of noncash dividend on convertible preferred stock.
Sales in the current quarter grew 2.5 percent to $129.5 million from $126.3 million in the year-ago period. Same-store sales for the quarter decreased by 2.2 percent compared to a 55.9 percent increase a year ago.
“Although results for the first two months of the quarter were disappointing, we saw an encouraging rebound in sales and gross product margins with both concepts in July,” Joel Waller, ceo of the teen specialty retailer, said in a statement.
The company operates the nameplates Wet Seal and Arden B.
For complete coverage, see Monday’s issue of WWD.