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Thomas Announces Plans to Re-merchandise Wet Seal
A week after juniors retailer Wet Seal Inc. announced that Ed Thomas would return as its chief executive officer, Thomas presided over a conference call with Wall Street analysts on Sept. 10.
“I think it is a great opportunity to recapture marketshare. I think it is pretty open now,” Thomas said of the current field for juniors retailing. Thomas ran the Foothill Ranch, Calif.–based Wet Seal from 2007 to 2011. John D. Goodman, Wet Seal’s previous CEO, left the company on Aug. 26. Thomas’s return marked the second time in more than 18 months that a new CEO has been announced at the retailer. The company had reported only one quarter of positive same-store sales in the past two years. During the Sept. 10 conference call, it was revealed that Wet Seal will close 48 stores.
Thomas promised to announce an action plan to turn around the retailer before Wet Seal’s conference call on its third-quarter results. Also, on Sept. 3, Wet Seal announced a stock sale that the company expects to make more than $18 million. Steve Benrubi, chief financial officer, said the retailer had enough cash to operate comfortably.
During the conference call, Thomas talked about the retailer’s mistakes over the past two years. “The customer base has skewed too young,” he said. “I don’t think we have to change the whole customer base.” Wet Seal will improve its performance by making clothes for an older teenager. He also noted that the merchandising mix offered too many basics.
