Bloomberg News

Wet Seal Shares Decline 14% as Profit, Revenue Trail Forecast

October 04, 2007

Wet Seal Inc. (WTSLA:US), the California-based women's clothing chain with 467 stores, fell 14 percent in U.S. trading after lowering its third-quarter earnings forecast and reporting an unexpectedly large drop in September sales.

The stock declined 57 cents to $3.42 at 8:09 a.m. New York time. It had already slumped (WTSLA:US) 40 percent this year through yesterday.

The Foothill Ranch, California-based retailer said yesterday that third-quarter net income (WTSLA:US) will probably be breakeven to 2 cents a share, down from an earlier forecast of 7 cents to 10 cents.

Comparable-store sales in September dropped 7.5 percent to 8.5 percent. The company had predicted a decline of 1 percent to a gain of 3 percent.

To contact the reporter on this story: Joseph Galante in New York at at jgalante3@bloomberg.net.

To contact the editor responsible for this story: Michael Nol at mnol@bloomberg.net.


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