Wet Seal to Open Outlet Shops
The Wet Seal Inc. reported its fourth quarter and fiscal 2012 results on March 21. Same-store sales declined 8.3 percent, and net sales for the fourth quarter were $161.7 million, compared with $163.2 million in its fourth quarter for its fiscal 2011 year. However, John D. Goodman, chief executive officer of Wet Seal, was upbeat in a recent conference call with Wall Street analysts.
“We are in the final stages of stabilizing our business,” he said. He forecast Wet Seal will return to positive same-store sales by the end of this year and will start growing again.
During the call, he said Wet Seal will open 19 outlet shops this year, close 14 to 18 Wet Seal shops and nine in its Arden B division, and remodel 20 to 24 Wet Seal shops. Goodman also promised to build Wet Seal’s e-commerce business, which currently makes up 6 percent of Wet Seal’s sales. He forecast e-commerce may eventually make up 10 percent of the retailer’s sales.—A.A.
