Wet Seal Inc. on Thursday reported a third-quarter profit compared with a loss last year as consumers responded positively to merchandise offerings through the fall season.
For the three months ended Oct. 28, net income increased to $2.4 million, or 2 cents a diluted share, which is against a loss of $6.5 million, or 14 cents, in the year-ago period.
The results included $5.6 million in noncash stock compensation expenses and $100,000 in interest costs. Excluding these items, income was $8.1 million, or 8 cents a diluted share. Last year’s loss of $6.5 million was due to $2.5 million in stock charges and $5.7 million in interest charges. Sales for the quarter rose 10.8 percent to $143.3 million from $129.3 million, while total same-store sales jumped 7.3 percent on top of a 46.6 percent gain last year.
For the nine-month period, the loss narrowed to $6.9 million, or 10 cents a diluted share, from a loss of $26.7 million, or $1.20, last year. Sales rose 10.7 percent to $397.9 million from $359.4 million.
“I am pleased with the results we achieved for both brands. At Wet Seal, our summer offering was powerful and was followed by a fall selling season that is exceeding our expectations,” Joel Waller, chief executive officer, said in a statement. “At Arden B., new collections provided strength in sales that we have not seen in this business for some time.”
The young women’s apparel retailer said it expects a solid holiday selling season, and predicts fourth-quarter earnings in the range of 9 to 12 cents a share, including stock option expenses.