NEW YORK — The Wet Seal Inc. reported second-quarter earnings of $4.4 million, or 4 cents a diluted share, compared with 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, noncash stock compensation charges of $200,000 and a store closure reserve adjustment that reduced expenses by $200,000. 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, while same-store sales for the quarter decreased by 2.2 percent compared with a 55.9 percent increase a year ago.
For the six months, the company narrowed its loss to $9.3 million, or 13 cents a diluted share, compared with a $43.6 million loss, or $1.13 a share, a year ago. Sales rose 10.7 percent to $254.7 million from $230.1 million.
“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, chief executive officer of the teen specialty retailer, said in a statement.
The company operates nameplates Wet Seal and Arden B.
The retailer said it was able to quickly correct its shortage in fashion tops and dresses for the back-to-school season at Wet Seal, and saw significant improvement at Arden B. as it began to receive fall assortments.