Wet Seal Falls 15% After CEO Resignation, Guidance Update

The Wet Seal, Inc.

is trading lower on the session after lowering its Q2 guidance and announcing the CEO resignation this morning. The company said its Board of Directors has terminated the employment of the Company's CEO, Susan McGalla, effective immediately. Wet Seal also said it expects that a Q2 loss before non-cash asset impairment and CEO severance costs will be $0.06-0.07 per diluted share, as compared to its initial guidance of a loss between $0.03 and $0.06 per diluted share. Wet Seal is currently trading at $2.50, a loss of $0.46 or 15.54%.