2009 Retrospective Retail Sales: Specialty Chains: Wet Seal, Buckle
Get ready for a 2010 comeback for The Wet Seal Inc., said retail analyst Jeffrey Van Sinderen.
The Foothill Ranch, Calif.–based affordable-fashion retailer spent much of 2009 building a foundation for its return to profitability, according to Van Sinderen, who works for Los Angeles–based B.Riley & Co.
If achieved, a return to profitability will be a sweet victory for Wet Seal Chief Executive Ed Thomas. In 2009 Wet Seal Inc. reported a full year of same-store-sales declines for its Wet Seal and Arden B. divisions. The last time it reported a same-store-sales increase was December 2007.
While Wet Seal’s finances remain solid—it has $144 million in cash—its Arden B. division suffered through much of the past two years by reporting double-digit same-store-sales declines. In 2009, the 80-store division hoped to change its fortunes by shifting from a relatively high-priced young contemporary price point to merchandise that could possibly be described as affordable fashion for the young contemporary shopper. Sharon Hughes helped guide much of this change of direction as a consultant to the company. In November, she was named president and chief merchandising officer of Arden B.
2009 was a good year for The Buckle Inc., a specialty retailer running a fleet of 404 stores. The Kearney, Neb.–based retailer was one of the few specialty chains that reported positive same-store sales throughout 2009. As the year rolled on, its positive sales went down from double digits to single digits. It left some retail analysts, including Adrienne Tennant of FBR Research, questioning whether The Buckle had reached its peak. Some further wondered if the retail chain will have a harder time competing this holiday season and in the near future. But not all agree. Roth Capital Partners’ Liz Pierce forecast no decline for The Buckle. She said its merchandise mix, inventory flexibility and market position would continue to keep it in top condition.—Andrew Asch
