This was a great follow through in breaking $5.00
CNBC GAVE A TARGET OF $9.30.
It may just do it, see no reason not to.
No position,just a pick.
http://stockcharts.com/def/servlet/SC.web?c=wtsla,uu[m,a]daclyyay[pb50!b200][vc60][iUb14!La12,26,9]&pref=G
I have WTSLA on my radar for a while now. I had a buy signal when it crossed $4.00. right now its in a overbought position. Im waiting for WSTLA to have a bit of correction maybe down to 5.5 area before next leg up
Active in the pre-market +12.50%
Quote from: kekec on June 16, 2005, 01:49:35 AM
I have WTSLA on my radar for a while now. I had a buy signal when it crossed $4.00. right now its in a overbought position. Im waiting for WSTLA to have a bit of correction maybe down to 5.5 area before next leg up
We are in the 5.50 area.
We may be headed up.
setravis,
what about the head and shoulder formation?
Did you not see it?
Friday like the last few day closed below the neck line level.
From such a H/S pattern, the book says it should go down a other 1.00$???
I say, be carefull!
What do you think?
I say you are correct Phabrux!
Do be careful.Thanks for the heads up! ;)
Has been on it's way back up. ;D
Moving in the pre-market. +6.60%.......Volume @.......152,142
Support @ $5.09...4.95...4.78
Resistance @ $5.51...5.66...5.81...6.38
MACD is Bullish
Stochastic is Bullish
Technicals
Last Price Quote is:
7.98%above 13-day EMA
10.91%above 50-day EMA
RS Rating: 24
Fundamentals
Key Data:
Market Cap (M): $289.92
P/E Ratio: NA
PEG Ratio: N/A
Next Earnings: 12/07/2005
Last Analyst Rating: Hold
Press Release Source: The Wet Seal, Inc.
The Wet Seal, Inc. Announces October Comparable Store Sales Up 46.6%
Thursday November 3, 7:30 am ET
FOOTHILL RANCH, Calif.--(BUSINESS WIRE)--Nov. 3, 2005--Specialty retailer The Wet Seal, Inc. (Nasdaq:WTSLA - News) today reported net sales for the four-week period ended October 29, 2005 of $36.0 million, compared with net sales of $29.8 million for the same period last year, an increase of 20.6 percent. Comparable store sales increased 46.6 percent for the four-week period ended October 29, 2005, compared with a decline of 15.5 percent for the same period a year ago.
Net sales for the fiscal quarter ended October 29, 2005 were $129.3 million, compared with net sales of $110.8 million for the same quarter last year, a 16.7 percent increase. Comparable store sales increased 46.6 percent for the fiscal quarter ended October 29, 2005, compared with a decline of 12.6 percent for the same quarter a year ago.
Net sales for the 39-week period ended October 29, 2005 were $359.4 million, compared with net sales of $316.4 million for the same period last year, a 13.6 percent increase. Comparable store sales increased 44.8 percent for the 39-week period ended October 29, 2005, compared with a decline of 13.5 percent for the same period a year ago.
Mr. Joel Waller, chief executive officer of the Wet Seal, Inc., commented: "We enjoyed our tenth consecutive month of comparable store sales growth in October. As we prepare for the upcoming holiday season, we are very pleased with the consistently strong sales growth we have experienced through three fiscal quarters of 2005."
During the four-week period ended October 29, 2005, the Company opened two Wet Seal and one Arden B. stores. At October 29, 2005, the Company operated 309 Wet Seal stores and 93 Arden B. stores.
Headquartered in Foothill Ranch, California, The Wet Seal, Inc. is a leading specialty retailer of fashionable and contemporary apparel and accessory items. The Company currently operates a total of 402 stores in 46 states, the District of Columbia and Puerto Rico, including 309 Wet Seal stores and 93 Arden B. stores. The Company's products can also be purchased online at www.wetseal.com or www.ardenb.com. For more company information, visit www.wetsealinc.com.
SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995: This news release contains forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, statements that relate to the Company's opening and closing of stores, profitability and growth, demand for its products or any other statements that relate to the intent, belief, plans or expectations of the Company or its management. All forward-looking statements made by the Company involve material risks and uncertainties and are subject to change based on factors beyond the Company's control. Accordingly, the Company's future performance and financial results may differ materially from those expressed or implied in any such forward-looking statements. Such factors include, but are not limited to, those described in the Company's filings with the Securities and Exchange Commission. This news release contains results reflecting partial year data and non-fiscal data that may not be indicative of results for similar future periods or for the full year. The Company will not undertake to publicly update or revise its forward-looking statements even if experience or future changes make it clear that any projected results expressed or implied therein will not be realized.
--------------------------------------------------------------------------------
Contact:
The Wet Seal, Inc.
Investor Relations, 949-699-4804
--------------------------------------------------------------------------------
Source: The Wet Seal, Inc.
Reuters.com - No Spin. No Agenda. Just the Facts. As they happen.
Wet Seal October same-store sales rise
Thu Nov 3, 2005 07:35 AM ET
NEW YORK, Nov 3 (Reuters) - Wet Seal Inc. (WTSLA.O: Quote, Profile, Research) on Thursday said sales at stores open at least a year rose 46.6 percent in October.
The retailer, which caters to teenage girls, said total sales for the four weeks ended on Oct. 29 rose 20.6 percent to $36 million from a year earlier.
bought into this stock a little too early or you can say too late on the last downtrend and held on at an loss for months. Company has been announcing 40-60% increase in SSS for the past few quarters. Numbers are expected to be in the black this upcoming earnings. The only concern I have is the hit retail specialty stores have been getting the past few weeks.
Any opinion on wtsla? I'm expecting a turnaround starting this quarter. My expectations too high?
Alan
Press Release Source: The Wet Seal, Inc.
The Wet Seal, Inc. Announces November Comparable Store Sales up 51.5%
Thursday December 1, 7:30 am ET
FOOTHILL RANCH, Calif.--(BUSINESS WIRE)--Dec. 1, 2005--The Wet Seal, Inc. (Nasdaq:WTSLA - News), a leading specialty retailer to young women, today reported net sales for the four-week period ended November 26, 2005 of $41.3 million, compared with net sales of $33.8 million for the same period last year, an increase of 22.3 percent. Comparable store sales increased 51.5 percent for the four-week period ended November 26, 2005, compared with a decline of 19.5 percent for the same period a year ago.
Net sales for the 43-week period ended November 26, 2005 were $400.7 million, compared with net sales of $350.1 million for the same period last year, a 14.5 percent increase. Comparable store sales increased 45.4 percent for the 43-week period ended November 26, 2005, compared with a decline of 14.1 percent for the same period a year ago.
Mr. Joel Waller, chief executive officer of The Wet Seal, Inc., commented: "With our eleventh consecutive month of comparable store sales growth in November, we're very happy to be carrying the momentum generated during 2005 right up to the beginning of the holiday selling season."
During the four-week period ended November 26, 2005, the Company did not open or close any Wet Seal or Arden B. stores. At November 26, 2005, the Company operated 309 Wet Seal stores and 93 Arden B. stores.
Headquartered in Foothill Ranch, California, The Wet Seal, Inc. is a leading specialty retailer of fashionable and contemporary apparel and accessory items. The Company currently operates a total of 402 stores in 46 states, the District of Columbia and Puerto Rico, including 309 Wet Seal stores and 93 Arden B. stores. The Company's products can also be purchased online at www.wetseal.com or www.ardenb.com. For more company information, visit www.wetsealinc.com.
SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995: This news release contains forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, statements that relate to the Company's opening and closing of stores, profitability and growth, demand for its products or any other statements that relate to the intent, belief, plans or expectations of the Company or its management. All forward-looking statements made by the Company involve material risks and uncertainties and are subject to change based on factors beyond the Company's control. Accordingly, the Company's future performance and financial results may differ materially from those expressed or implied in any such forward-looking statements. Such factors include, but are not limited to, those described in the Company's filings with the Securities and Exchange Commission. This news release contains results reflecting partial year data and non-fiscal data that may not be indicative of results for similar future periods or for the full year. The Company will not undertake to publicly update or revise its forward-looking statements even if experience or future changes make it clear that any projected results expressed or implied therein will not be realized.
Contact:
The Wet Seal, Inc.
Investor Relations, 949-699-4804
--------------------------------------------------------------------------------
Source: The Wet Seal, Inc.
Press Release Source: The Wet Seal, Inc.
The Wet Seal, Inc. Announces December Comparable Store Sales up 38.5%
Thursday January 5, 7:30 am ET
FOOTHILL RANCH, Calif.--(BUSINESS WIRE)--Jan. 5, 2006--The Wet Seal, Inc. (Nasdaq:WTSLA - News), a leading specialty retailer to young women, today reported net sales for the five-week period ended December 31, 2005 of $69.9 million, compared with net sales of $63.2 million for the same period last year, an increase of 10.6 percent. Comparable store sales increased 38.5 percent for the five-week period ended December 31, 2005, compared with a decline of 11.8 percent for the same period a year ago.
Net sales for the 48-week period ended December 31, 2005 were $470.6 million, compared with net sales of $413.3 million for the same period last year, a 13.9 percent increase. Comparable store sales increased 44.3 percent for the 48-week period ended December 31, 2005, compared with a decline of 13.8 percent for the same period a year ago.
Mr. Joel Waller, chief executive officer of The Wet Seal, Inc., commented: "We're very pleased with our strong sales performance during the all-important holiday selling season. December's sales results brought us our twelfth consecutive month of comparable store sales growth."
During the five-week period ended December 31, 2005, the Company opened one Wet Seal store and closed one Wet Seal store. At December 31, 2005, the Company operated 309 Wet Seal stores and 93 Arden B. stores.
Headquartered in Foothill Ranch, California, The Wet Seal, Inc. is a leading specialty retailer of fashionable and contemporary apparel and accessory items. The Company currently operates a total of 402 stores in 46 states, the District of Columbia and Puerto Rico, including 309 Wet Seal stores and 93 Arden B. stores. The Company's products can also be purchased online at www.wetseal.com or www.ardenb.com. For more company information, visit www.wetsealinc.com.
Contact:
The Wet Seal, Inc.
John Luttrell, 949-699-3918
--------------------------------------------------------------------------------
Source: The Wet Seal, Inc.
Active in the pre-market.
Looks to be headed for a higher open.
WET SEAL INC CL A (NasdaqNM:WTSLA) Delayed quote data
Pre-Market (RT-ECN): 4.76 0.35 (+7.94%)
Yesterday's closing chart
Breakout from this Symmetrical Triangle (continuation) Pattern,
With follow through.
Volume: 2,302,817
Avg Volume (3m): 708,376
Technicals
Close Above the 50-day EMA
Close Above the 13-day EMA
Last Price Quote is:
20.59%above 13-day EMA
18.54%above 50-day EMA
RS Rating: 74
Fundamentals
Key Data:
Market Cap (M): $273.06
P/E Ratio: NA
PEG Ratio: N/A
Next Earnings: 04/21/2006
Last Analyst Rating: Hold
North bound this morning.
+5.18%....Volume @......406,161
Yes, I've bought some here at $5.21..It looks constructive, that is, if the overall mkt. doesn't hit the skids....
Quote from: setravis on January 27, 2006, 04:58:44 PM
Breakout from this Symmetrical Triangle (continuation) Pattern,
With follow through.
Wet Seal upgraded by Sanders Morris Harris........From Hold...To Buy.
Briefing.com (Fri 9:17am)
Link..... http://finance.yahoo.com/q/ud?s=WTSLA
Technicals
Last Price Quote is:
6.05%above 13-day EMA
9.44%above 50-day EMA
RS Rating: 54
Fundamentals
Analyst Upgrade to Buy
Key Data:
Market Cap (M): $346.04
P/E Ratio: NA
PEG Ratio: N/A
Next Earnings: 04/21/2006
Last Analyst Rating: Buy
[audio] The Wet Seal, Inc. Earnings Conference Call (live tomorrow at 5:00 pm ET)
Link....... http://biz.yahoo.com/cc/1/66471.html
A lot of potential, good support.
Breakout of the Symmetrical Triangle (continuation)Pattern.
Technicals
Last Price Quote is:
8.07%above 13-day EMA
12.29%above 50-day EMA
RS Rating: 83
Fundamentals
Earnings Expected on Mar 23
Key Data:
Market Cap (M): $341.64
P/E Ratio: NA
PEG Ratio: -0.832
Next Earnings: 03/23/2006
Last Analyst Rating: Accumulate
Volume: 2,095,988
Avg Vol (3m): 966,203
Technicals
Last Price Quote is:
10.38%above 13-day EMA
17.12%above 50-day EMA
RS Rating: 90
Fundamentals
Key Data:
Market Cap (M): $367.43
P/E Ratio: NA
PEG Ratio: -0.892
Next Earnings: 05/26/2006
Last Analyst Rating: Accumulate
Motley Fool
Can Wet Seal Swim Again?
Friday March 24, 10:35 am ET
By Stephen D. Simpson, CFA (TMFWildWeasel)
What a difference a year and a half can make.
In the fall of 2004, teen retailer Wet Seal (Nasdaq: WTSLA - News) was flat on its back, briefly trading for less than a buck a share. The company had badly misjudged trends and tastes for several periods in a row, had turbulence within its management ranks, and had been all but abandoned by the "fashion forward" young ladies that its two concepts target.
Since then, the company has hired a well-regarded merchandising consultant, closed numerous stores, and managed to pull itself back from the brink of bankruptcy.
That's not to say that things are going swimmingly for this seal just yet. True, net sales for the fourth quarter were up almost 19%, atop a more-than-44% boost in same-store sales, but that was compared to a very low base indeed. And while the company is now profitable at the operating income line -- as well as the net income line, if you subtract out a sea of charges -- I wouldn't say that business is necessarily booming again.
Management has some interesting ideas about how to continue to right the ship. First, it's looking to boost imports as a percentage of its total merchandise. This is a good idea, since it will improve margins, but the company can probably only take it so far. Being "fashion forward" requires a level of responsiveness that isn't always compatible with relying upon imports.
The company is also focusing future store growth on what it calls type "B" and "C" malls. Intuitively, you'd think that you'd want to locate stores in the better malls (the "type As"), but management says it's had better success with the second- and third-tier locations. Given that the namesake Wet Seal chain is value-oriented (as opposed to Arden B, which competes more with the likes of bebe stores (Nasdaq: BEBE - News) and Guess? (NYSE: GES - News)), I suppose that makes a certain amount of sense. It can be relatively more difficult to do well with bargain merchandise in high-class shopping centers.
If you had the guts to buy this when it was circling the drain, I congratulate you. That said, while Wet Seal has made progress, it's still not even close to the level of Abercrombie & Fitch (NYSE: ANF - News), Aeropostale (NYSE: ARO - News), and the other teen-scene kings. It'll be interesting to see how Wet Seal performs this year when faced with tougher year-ago comps. It's never too late to turn yourself around in retail, but just remember that success is still far from a sure thing.
bebe stores is a Motley Fool Stock Advisor recommendation.
Fool contributor Stephen Simpson has no financial interest in any stocks mentioned (that means he's neither long nor short the shares).
Breakout with great follow through.
The Golden Cross has occurred.
Volume: 2,259,998
Avg Vol (3m): 966,203
Technicals
Last Price Quote is:
12.09%above 13-day EMA
19.89%above 50-day EMA
RS Rating: 93
Fundamentals
Key Data:
Market Cap (M): $367.43
P/E Ratio: NA
PEG Ratio: -0.94
Next Earnings: 05/26/2006
Last Analyst Rating: Accumulate
Moving on baby.... ;D
Volume: 2,475,602
Avg Vol (3m): 992,237
Technicals
Last Price Quote is:
13.80%above 13-day EMA
22.86%above 50-day EMA
RS Rating: 94
Fundamentals
Key Data:
Market Cap (M): $367.43
P/E Ratio: NA
PEG Ratio: -0.968
Next Earnings: 05/26/2006
Last Analyst Rating: Accumulate
Reuters
Back-to-school styles hit mall
Sunday July 23, 11:14 am ET
By Alexandria Sage
LOS ANGELES (Reuters) - Steamy July temperatures, high gas prices and a slowing U.S. economy are all contributing to create a very different start to this year's back-to-school shopping season.
While school shopping was once solely a late August, early September boon for retailers, kids go back to school earlier now and stocks of sweaters and corduroys have been replaced by more warm weather offerings.
"Buy now, wear now" warm weather styles have hit the malls with a bang, but analysts are divided over how much economic pressures will keep young shoppers and their parents away.
On Monday, Target Corp.(NYSE:TGT - News) -- currently showcasing its back-to-school dorm room essentials -- lowered its July sales forecast.
And recent surveys give a mixed picture of consumer behavior. A National Retail Federation back-to-school report found that families will spend more this season than last, with apparel and electronics driving sales. But an America's Research Group survey found that nearly half of U.S. parents have convinced their children to wear last year's clothing this season.
"Everybody is down on the economy," said retail consultant Kurt Barnard. "Back-to-school is going to be very difficult and is going to be a period where a lot of retailers will look wistfully at what they did last year."
But Brean Murray, Carret analyst Eric Beder said that, after a relatively dull spring and summer, teens will welcome new styles at trendy retailers such as Wet Seal Inc. (NASDAQ:WTSLA - News) and Guess Inc. (NYSE:GES - News). And teens will continue to buy through September once they have seen what their peers are wearing, creating a double-edged sword for retailers.
"If you're fashion-right, your season will be longer and you'll take advantage of it," Beder said. "If you're not, you're in purgatory for a lot longer."
Analyst Marshal Cohen of NPD Group said consumers sense a lack of must-have items and there is a willingness to wait before buying. He expects that, as shoppers cut back on impulse buying, the winners will include J.C. Penney Co. Inc. (NYSE:JCP - News) and Kohl's Corp. (NYSE:KSS - News), while higher-end mall darlings such as Coach Inc. (NYSE:COH - News) will suffer.
"The end of the third quarter is where you'll see the absence of back-to-school. And it's a clear indication of what's going to happen for (the) holiday," Cohen said.
INSTANT GRATIFICATION
Teen retailers, who are usually insulated from economic pressures, may get a boost this year with the increased emphasis on apparel that can be worn right away, as opposed to later when the weather turns colder, some analysts say.
"People aren't willing to fund a wardrobe they don't wear for three months," Sanders Morris Harris analyst Liz Pierce said.
Youth retailers who succeed will be those such as American Eagle Outfitters Inc. (NASDAQ:AEOS - News), who create strategies to overcome consumers' resistance to buying, analysts say. Barnard also cited Federated Department Stores Inc. (NYSE:FD - News) as creating excitement in its new Macy's stores.
American Eagle, which introduced a large number of cold- weather styles last year, is giving customers free movie passes in exchange for trying on its new assortment of jeans.
"Kids will go as a destination to American Eagle," said The Doneger Group market analyst Tim Bess. "I think it will hurt the other guys."
That includes Abercrombie & Fitch Co. (NYSE:ANF - News), a winner in the last two back-to-school seasons that may now be hitting a snag.
Analysts have cited concerns Abercrombie's fall assortment includes too many heavy fabrics and distressed denim styles that do not gibe with today's pared-down look. On Tuesday, A.G. Edwards downgraded the stock, which has dropped 7 percent since the beginning of July, citing consumer spending concerns.
But struggling teen retailer Hot Topic Inc.(NASDAQ:HOTT - News), may get a boost from the skinny jeans trend, analysts say, as the look fits into the company's rocker sensibility.
(Additional reporting by Chelsea Emery in New York)
One to watch......
Way oeversold !
Technicals
Last Price Quote is:
0.29%above 13-day EMA
-5.65%below 50-day EMA
RS Rating: 14
Fundamentals
Key Data:
Market Cap (M): $334.51
P/E Ratio: NA
PEG Ratio: 0.432
Next Earnings: 09/04/2006
Last Analyst Rating: Hold
WetSeal ,trying to prove that they are turning things around.
50-day MA about to cross over the 200-day MA...The Golden Cross.....
Technicals
Last Price Quote is:
5.71%above 13-day EMA
15.18%above 50-day EMA
RS Rating: 96
Fundamentals
Key Data:
Market Cap (M): $455.37
P/E Ratio: NA
PEG Ratio: -4000
Next Earnings: 11/28/2006
Last Analyst Rating: Buy
Will drop the end of the day chart.....
Wet Seal of Approval......
Retail picking up before xmas season.
Support @ $5.97...5.70...5.20
Resistance @ $6.20...6.78
52wk Range: 4.15 - 6.83
Volume: 998,457
Avg Vol (3m): 648,338
Technicals
Last Price Quote is:
3.37%above 13-day MA
8.54%above 50-day MA
RS Rating: 92
Fundamentals
Key Data:
Market Cap (M): $455.37
P/E Ratio: NA
PEG Ratio: -4000
Next Earnings: 11/28/2006
Last Analyst Rating:
HeadLine News Link...... http://finance.yahoo.com/q/h?s=WTSLA
Apparel Chain Sales Results
AP (Thu, Oct 5)
• Wet Seal Same-Store Sales Climb
AP (Thu, Oct 5)
• Wet Seal September same-store sales rise
at Reuters (Thu, Oct 5)
• Wet Seal September same-store sales rise 5.8%
at MarketWatch (Thu, Oct 5)
• The Wet Seal, Inc. Announces September Comparable Store Sales up 5.8%
Business Wire (Thu, Oct 5)
The Wet Seal, Inc. Earnings Conference Call (Q3 2006)
Link...... http://biz.yahoo.com/cc/0/75040.html
Bouncing off a 38.2% Fib retrace.
52wk Range: 4.15 - 6.83
Volume: 269,861
Avg Vol (3m): 676,953
Technicals
Close Above the 13-day MA
Last Price Quote is:
1.27%above 13-day MA
3.14%above 50-day MA
RS Rating: 90
Fundamentals
Earnings Expected on Nov 16
Key Data:
Market Cap (M): $455.37
P/E Ratio: NA
PEG Ratio: -4000
Next Earnings: 11/28/2006
Last Analyst Rating: Buy
I haven't time for any comments...
I will leave today's closing chart........Nice Move!! ;)
WET SEAL INC CL A (NasdaqGM:WTSLA) Delayed quote data
After Hours: 6.97 0.20 (2.95%) ............................................. ;)
52wk Range: 4.15 - 6.85
Volume: 2,388,419 .......................... ;D
Avg Vol (3m): 709,821
Looks good setravis ... waiting for entry point here on the breakout of the Rectangle Pattern ;)
WetSeal is wanting to break out today 1.44M vol Price 7.04 as I write this
AP
Wet Seal November Sales Up Sharply
Thursday November 30, 7:30 am ET
Wet Seal November Same-Store Sales Growth Beats Wall Street Expectations
FOOTHILL RANCH, Calif. (AP) -- Teen clothing retailer Wet Seal Inc. said Thursday November same-store sales rose 5.5 percent surpassed expectations on Wall Street, where analysts were looking for a 4 percent gain, according to Thomson Financial.
Same-store sales, or sales at stores open at least a year, are a closely watched indicator of retail strength. In the year-ago period, the company posted a 51.5 percent gain.
Wet Seal, which operates the Arden B chain in addition to its namesake franchise, said total sales for the four weeks ended Nov. 25 climbed 11.4 percent to $46 million from $41.3 million last year.
Looking ahead, the company forecast December same-store sales to grow by a low to mid-single-digit percentage.
"Sales again exceeded our expectations in November," said Joel Waller, chief executive officer. "We are well positioned to meet anticipated strong demand for the holidays."
The company currently operates 425 stores in 46 states, the District of Columbia and Puerto Rico, including 333 Wet Seal stores and 92 Arden B stores.
A Good Year in Retail.
52wk Range: 4.15 - 7.60
Volume: 509,321
Avg Vol (3m): 785,515
Technicals
Last Price Quote is:
-0.04%below 13-day MA
8.74%above 50-day MA
RS Rating: 86
Fundamentals
Key Data:
Market Cap (M): $455.37
P/E Ratio: NA
PEG Ratio: -4000
Next Earnings: N/A
Last Analyst Rating: Overweight
AP
Wet Seal Shares Rise
Friday March 28, 11:00 am ET
Wet Seal Shares Increase for 2nd Day After 4th-Quarter Earnings; Analyst Raises Target Price
NEW YORK (AP) -- Shares of Wet Seal Inc. rose for the second day on Friday, one of the few retailers to gain, as an analyst raised her target price on the stock following strong fourth-quarter earnings.
On Thursday, Wet Seal reported fourth-quarter profit above expectations as it tightened control on inventory.
Roth Capital Partners analyst Elizabeth Pierce said in a note to investors on Friday that results were strong amid a difficult retail environment.
"We attribute the better than expected Q4 performance to the company's conservative management of the business which was evident by the tightly managed inventory levels, firm control of expenses and the decisive slowdown in square footage growth," Roth wrote.
She added Wet Seal has strong growth potential and can improve operating margins over the next two years.
Roth raised her price target to $5 from $4.50 and reiterated her "Buy" rating on the stock.
Shares rose 14 cents, or 4.9 percent, to $3.01 during midday trading. The stock has traded between $1.81 and $6.67 during the past 52 weeks.
52wk Range: 1.81 - 6.67
Volume: 2,098,483
Avg Vol (3m): 1,572,420
Market Cap: 300.52M
P/E (ttm): 58.18
EPS (ttm): 0.06
Technicals
Close Above the 50-day MA
Close Above the 13-day MA
Percentage Gainer
Last Price Quote is:
17.69%above 13-day MA
17.49%above 50-day MA
RS Rating: 97
Fundamentals
Key Data:
Market Cap (M): $249.65
P/E Ratio: 250.47
PEG Ratio: 1.23333
Next Earnings: 05/21/2008
Last Analyst Rating: Neutral
Small-Cap Winners.......
Foothill Ranch, Calif.'s Wet Seal (WTSLA), an apparel retailer headquartered in Foothill Ranch, Calif., tacked on 4.67% to $4.48. Wet Seal reported first-quarter earnings of $8.9 million, or 9 cents a share, vs. $7.6 million, or 7 cents a share, in the year-ago quarter. The Street was looking for 7 cents a share. The company guided for second-quarter EPS between 8 cents and 10 cents, ahead of the consensus estimate of 7 cents a share. JPMorgan upgraded the stock to overweight from neutral.
52wk Range: 1.81 - 6.33
Volume: 9,460,747
Avg Vol (3m): 1,640,220
Market Cap: 413.08M
P/E (ttm): 19.48
EPS (ttm): 0.23
Technicals
Most Actives
Gap Up
Last Price Quote is:
9.52%above 13-day MA
23.63%above 50-day MA
RS Rating: 95
Fundamentals
Analyst Upgrade to Overweight
Key Data:
Market Cap (M): $412.42
P/E Ratio: 20.81
PEG Ratio: 1.20833
Next Earnings: 08/21/2008
Last Analyst Rating: Overweight
updated chart look...
The Wet Seal, Inc. Announces Second Quarter Fiscal 2009 Resu...
FOOTHILL RANCH, Calif., Aug 20, 2009 (BUSINESS WIRE) -- The Wet Seal, Inc. (WTSLA), a leading specialty retailer to young women, announced results for its fiscal second quarter ended August 1, 2009, and introduced guidance for the third quarter of fiscal 2009. The Company provides segment information on Wet Seal and Arden B in Exhibit B to this press release.
For the second quarter:
-- Net sales for the quarter were $136.4 million compared to net sales of $149.1 million for the prior year second quarter.
-- Consolidated comparable store sales decreased 10.6%. Comparable store sales for Wet Seal decreased 11.9% and for Arden B decreased 4.1%.
-- Operating income was $3.3 million, or 2.4% of net sales, compared to $11.8 million, or 7.9% of net sales, in the prior year second quarter.
-- The current year quarter included $1.6 million in non-cash asset impairment charges and $1.2 million of benefits resulting from a change in estimated breakage for unredeemed gift cards, gift certificates and store credits. The prior year quarter included $0.3 million in non-cash asset impairment charges and $1.9 million in non-cash interest charges associated with a June 2008 conversion of $3.4 million of the Company's Secured Convertible Notes into Class A common stock.
-- Net income was $3.1 million, or $0.03 per diluted share, as compared to $10.1 million, or $0.10 per diluted share, in the prior year quarter. Excluding the effect of the prior year interest charges noted above, net income in the prior year quarter was $12.0 million, or $0.12 per diluted share.
Ed Thomas, chief executive officer, commented, "We have made some progress at both divisions, but we are disappointed with our overall results for the second quarter. At Arden B, we sustained performance improvement begun in the first quarter, with operating income of $3.3 million in the second quarter. We have also gained further confidence in the lower-priced merchandise model we adopted at Arden B at the beginning of this year.
"At Wet Seal, while we entered the second quarter with inventory mix issues that challenged our sales and margin performance, by the beginning of August we had remedied many of these issues and believe we are better positioned for the important back-to-school season."
As of quarter-end, the Company's inventory per square foot declined 15% versus the prior year quarter, with Wet Seal down 14% and Arden B down 21%.
The Company generated cash flows from operations of $11.0 million during the second quarter, and ended the quarter with $144 million of cash and cash equivalents and $3.1 million of long-term debt, comprised of Convertible Notes, net of discount.
Store Openings and Closings
The Company had five Wet Seal net store openings and two Arden B net store closures during the second quarter. At August 1, 2009, the Company operated 496 stores in 47 states, the District of Columbia and Puerto Rico, including 415 Wet Seal stores and 81 Arden B stores.
Capital Expenditures and Depreciation
During the second quarter, the Company incurred capital expenditures of $6.6 million, of which $6.0 million was for construction of new stores and remodels of existing stores. The Company recognized tenant improvement allowances of $0.5 million associated primarily with new store construction, resulting in net capital expenditures for the quarter of $6.1 million.
Depreciation in the second quarter totaled $3.6 million as compared to $3.6 million in the prior year second quarter.
Capital Transactions
During the second quarter, there were no conversions of Secured Convertible Notes or convertible preferred stock. As of August 1, 2009, Secured Convertible Notes and Convertible Preferred Stock remain outstanding that are convertible into approximately 3.1 million shares and 537,000 shares, respectively, of the Company's Class A common stock.
During the second quarter, investors exercised warrants for 83,572 shares of the Company's Class A common stock, generating proceeds to the Company of $0.2 million. As of August 1, 2009, warrants exercisable into approximately 10.6 million shares of the Company's Class A common stock remain outstanding. Exercise of all remaining outstanding warrants via cash payment by the warrant holders would result in proceeds to the Company of $39.1 million. The average exercise price on the outstanding warrants is $3.70, with approximately 7.8 million of such warrants having an exercise price in excess of the Company's closing Class A common stock price as of August 19, 2009.
Income Taxes
The Company began fiscal 2009 with approximately $117.9 million of federal net operating loss ("NOL") carry forwards available to offset taxable income in fiscal 2009 and thereafter, subject to certain annual limitations based on the provisions of Section 382 of the Internal Revenue Code. Subject to potential further adjustment, the Company believes NOL carry forwards available will be sufficient to offset any possible federal regular taxable income in fiscal 2009. Accordingly, if the Company generates taxable income in Fiscal 2009, the Company expects it would report an effective income tax rate of approximately 3.0% related to a limited portion of federal alternative minimum taxes that cannot be offset by NOL carry forwards, income taxes in the State of California, which cannot be offset by NOL carry forwards, and certain other state income taxes.
Reconciliation of Non-GAAP Financial Measures to Most Directly Comparable Financial Measures
Included within this press release are references to net income and earnings per diluted share before certain charges, which are measures not in compliance with accounting principles generally accepted in the United States of America, or "non-GAAP financial measures." The following is a reconciliation of these non-GAAP financial measures to the applicable GAAP financial measures for the 13-week period ended August 2, 2008 (in millions, except for earnings per diluted share):
13 Weeks Ended August 2, 2008
Net Income Earnings Per
Diluted Share
Financial measure before certain charges
(non-GAAP) $12.0 $0.12
Charges:
Non-cash interest expense upon conversion
of Secured Convertible Notes (1.9) (0.02)
GAAP financial measure $10.1 $0.10
The complexity and volatility of the accounting and financial reporting for the Company's Secured Convertible Notes has been a focus of the Company's management and investors. To help investors better understand the complexity of the accounting for the Notes, the Company provided significant disclosure in its Annual Report on Form 10-K for the fiscal year ended January 31, 2009. Management occasionally presents certain financial information that excludes the non-cash charges for the ratable write-off of unamortized debt discounts, deferred financing costs and accrued interest when notes are converted. Given the unique nature of these charges and their volatility, management believes that presenting financial information without these charges helps investors better understand the Company's current operating performance. Management believes the magnitude of the charges when conversions occur can impact investors' understanding of the Company's business results in such periods. Explicit disclosure of these impacts provides meaningful information to investors.
Third Quarter Fiscal 2009 Guidance
For the third quarter of fiscal 2009, earnings are estimated in the range of $0.02 to $0.05 per diluted share. The guidance is based on the following major assumptions:
-- Total net sales between $138 million and $142 million versus $146.6 million in the third quarter of fiscal 2008.
-- Comparable store sales decline between 6% and 9% versus a 7.6% decrease in the prior year third quarter.
-- Gross margin rate between 27.9% and 29.7% of net sales versus 31.3% in the prior year third quarter, with the decrease driven mainly by a deleveraging effect on occupancy costs due to the forecasted comparable store sales decline and a reduction in merchandise margin.
-- SG&A expense between 26.0% and 26.4% of net sales versus 26.1% in the prior year third quarter.
-- Operating income between $2.1 million and $5.2 million versus operating income of $7.1 million in the prior year third quarter.
-- Interest expense of $0.1 million versus interest income of $0.4 million in the prior year third quarter.
-- Income tax expense of between $0.1 million and $0.2 million versus income tax expense of $0.6 million in the prior year third quarter.
-- Net new store openings of 3 stores at Wet Seal and closing of 1 store at Arden B.
The Company will host a conference call and question and answer session at 1:30 p.m. Pacific Time today. To participate in the conference call, please dial 888-293-6966 and provide ID number 9411665. A broadcast of the call will also be available on the Company's website, www.wetsealinc.com . A replay of the call will be available through August 27, 2009. To access the replay, please call 888-203-1112 or 719-457-0820 and provide the ID number above.
Headquartered in Foothill Ranch, California, The Wet Seal, Inc. is a leading specialty retailer of fashionable and contemporary apparel and accessory items. As of August 1, 2009, the Company operated a total of 496 stores in 47 states, the District of Columbia and Puerto Rico, including 415 Wet Seal stores and 81 Arden B stores. The Company's products can also be purchased online at www.wetseal.com or www.ardenb.com . For more company information, visit www.wetsealinc.com .
SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995: This news release contains forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, statements that relate to the Company's guidance for its third quarter of fiscal 2009, or any other statements that relate to the intent, belief, plans or expectations of the Company or its management. All forward-looking statements made by the Company involve material risks and uncertainties and are subject to change based on factors beyond the Company's control. Accordingly, the Company's future performance and financial results may differ materially from those expressed or implied in any such forward-looking statements. Such factors include, but are not limited to, those described in the Company's filings with the Securities and Exchange Commission. This news release contains results reflecting partial year data and non-fiscal data that may not be indicative of results for similar future periods or for the full year. The Company will not undertake to publicly update or revise its forward-looking statements even if experience or future changes make it clear that any projected results expressed or implied therein will not be realized.
Segment Reporting (Unaudited)
The Company operates exclusively in the retail apparel industry in which it sells fashionable and contemporary apparel and accessories items, primarily through mall-based chains of retail stores, to female consumers with a young, active lifestyle. The Company has identified two operating segments ("Wet Seal" and "Arden B") as defined by Statement of Financial Accounting Standards No. 131, "Disclosures about Segments of an Enterprise and Related Information." E-commerce operations for Wet Seal and Arden B are included in their respective operating segments. Information for the 13 and 26 weeks ended August 1, 2009, and August 2, 2008, for the two reportable segments is set forth below (in thousands, except store counts and sales per square foot):
Wet Seal and Arden B reportable segments include net sales generated from their respective stores and e-commerce operations. The "Corporate" column is presented solely to allow for reconciliation of store contribution amounts to consolidated operating income, interest expense, net, and income before provision for income taxes. Wet Seal and Arden B segment results include net sales, cost of sales, asset impairment and other direct store and field management expenses, with no allocation of corporate overhead or interest income and expense.
Wet Seal operating segment results during the 13 and 26 weeks ended August 1, 2009, include $0.8 million and $0.8 million, respectively, of additional net sales resulting from a change in estimated "breakage" for unredeemed gift cards, gift certificates and store credits remaining outstanding more than two years from their respective issuance dates, and during the 13 and 26 weeks ended August 1, 2009, and the 13 and 26 weeks ended August 2, 2008, includes $1.6 million, $1.6 million, $0.3 million and $0.3 million, respectively, of asset impairment charges.
Arden B operating segment results during the 13 and 26 weeks ended August 1, 2009, include $0.4 million and $0.4 million, respectively, of additional net sales resulting from a change in estimated "breakage" for unredeemed gift cards, gift certificates and store credits remaining outstanding more than two years from their respective issuance dates.
Corporate expenses during the 13 and 26 weeks ended August 2, 2008, include interest expense of $1.9 million and $1.9 million, respectively, as a result of accelerated write-off of discounts, capitalized interest and deferred financing costs upon conversions of secured convertible notes.
SOURCE: The Wet Seal, Inc.
The Wet Seal, Inc.
Steven H. Benrubi, 949-699-3947
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Fundamentals
Key Data:
Market Cap (M): $342.57
P/E Ratio: 13.64
PEG Ratio: 0.622222
Next Earnings: 11/19/2009
Last Analyst Rating: Buy