Wet Seal Misses Q2 Revenue Estimates; Provides Weak Q3 Guidance

Retailer The Wet Seal

released its fiscal second-quarter earnings results after the closing bell on Tuesday. The company reported lower than expected revenues for the period and a dismal outlook for the third-quarter. The Wet Seal reported an adjusted net loss for the second quarter of $5.8 million or $0.07 per share, compared to net income of $2.8 million or $0.03 per share, in last year's corresponding quarter. This was in line with Wall Street consensus EPS estimates calling for a $0.07 loss. Net sales for the second-quarter were $135.26 million, down from the $148.77 million that the company reported in last year's corresponding quarter. This missed analysts' consensus revenue estimates of $136.64 million. Looking ahead to the third-quarter, The Wet Seal sees a net loss of between $0.13 and $0.16 per share on total sales of $128 million to $133 million. Currently, Wall Street analysts project that the company will lose $0.01 per share on revenue of $144.41 million for the third-quarter.