The Wet Seal, Inc. Announces July Comparable Store Sales Increased 7.4%

The Wet Seal, Inc. (Nasdaq: WTSLA), a leading specialty retailer to young women, reported net sales and comparable store sales for the four-week period ended July 30, 2011, or fiscal July, and the fiscal second quarter ended July 30, 2011, as follows:

Fiscal July

Fiscal Second Quarter

The Company expects earnings per diluted share for the fiscal second quarter to be $0.02, which is the high end of its initial guidance range of $0.01 to $0.02. This includes estimated non-cash asset impairment charges, net of income taxes, of $0.6 million, which were not anticipated in the Company's original guidance. Excluding the asset impairment charges, earnings per diluted share for the fiscal second quarter are expected to be between $0.02 and $0.03.

Susan McGalla, chief executive officer of The Wet Seal, Inc., commented: “We are encouraged by our July sales results as we begin the back-to-school season.”

Ms. McGalla continued, “At Wet Seal, our balanced assortment at a compelling value continued to drive improved sales and a higher merchandise margin versus the prior year. Led by our accessories business, we generated positive July comparable store sales in nearly all major categories. At Arden B, we were pleased with our sales results, which were driven by continued strength in our dress business.”

For the fiscal month and quarter, the Company's e-commerce sales declined 17% and 13%, respectively, as the Company continues its strategic efforts to transition to a higher penetration of full-price selling online and better align merchandising in this channel with its stores.

Ms. McGalla concluded, “We estimate we ended the quarter with inventory per square foot up 3% to the prior year, with Wet Seal up 1% and Arden B up 12%. We are comfortable and believe we're well-positioned with this overall inventory level as we enter the third quarter.”

About The Wet Seal, Inc.

Headquartered in Foothill Ranch, California, The Wet Seal, Inc. is a leading specialty retailer of fashionable and contemporary apparel and accessory items. As of July 30, 2011, the Company operated a total of 542 stores in 47 states and Puerto Rico, including 460 Wet Seal stores and 82 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 estimated second quarter earnings per share and inventory levels, as well as 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.