Wet Seal Loss Widens; Stock Plunges 25%

(RTTNews) - Women's apparel retailer Wet Seal Inc (WTSL) Wednesday reported third-quarter net loss of $35.9 million or $0.43 per share compared with a loss of $14.9 million or $0.15 per share last year.

Excluding items, adjusted loss for the quarter was $0.28 per share compared with a loss of $0.09 per share a year ago.

Revenues for the quarter were lower at $104.3 million compared with $114.9 million in the prior year.

Analysts polled by Thomson Reuters estimated a loss of $0.26 per share on revenues of $97.2 million for the quarter. Analysts' estimates typically exclude special items.

Consolidated comparable store sales for the quarter slid 14.5%.

Gross margin for the quarter declined to 13.7% from 23.8% a year ago.

The company's CEO Ed Thomas said, "While our results came in at the low end of our expectations during the third quarter, we continue to take important steps in our efforts to address our financial position and our ongoing challenges."

"A key priority is to address our immediate liquidity needs in the very near term in order for us to have the time and resources to be able to implement our operating strategies."

As previously disclosed, the company has engaged the services of outside advisors to assist it in analyzing potential strategic and financial alternatives.