Wet Seal Announces Stock Buyback (WTSLA)

Shares of The Wet Seal Inc. (NASDAQ: WTSLA) ended the session lower by 5.62%, trading at $3.19. The stock has been sliding lower for the past six months, off from a recent high near $5.20. Management is looking to stem the bleeding in shares and just issued a press release after the closing bell announcing that they will be repurchasing $25 million in stock. Based on the company's closing share price on September 7, 2010, the $25 million stock repurchase program represents approximately 7.7% of the WTSLA’s total market capitalization. The repurchase program will be funded using existing cash on hand, which currently totals $165.5 million.The Wet Seal, Inc. is a national specialty retailer operating stores selling fashionable and contemporary apparel and accessory items designed for female customers aged 13 to 35 years old. As of January 30, 2010, it operated 504 retail stores in 47 states, Puerto Rico and Washington D.C. Its products can also be purchased online. The company operates two nationwide, primarily mall-based, chains of retail stores under the names Wet Seal and Arden B. As of January 30, 2010, it operated 424 Wet Seal stores and 80 Arden B stores.