Wet Seal swings to a profit on autumn sales
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Clothing retailer Wet Seal Inc. said Thursday that it swung to a profit in its fiscal third quarter on better-than-expected fall sales and lower interest expense.
The Foothill Ranch-based company, whose Wet Seal and Arden B chains carry clothes primarily for young women, reported net income of $2.4 million, or 2 cents a share, in the quarter that ended Oct. 28.
The period included $5.6 million in noncash stock compensation expenses and $100,000 in interest costs. Excluding items, earnings were $8.1 million, or 8 cents a share, in line with Wall Street estimates.
A year earlier, Wet Seal posted a loss of $6.5 million, or 14 cents a share, hit by $2.5 million in stock charges and $5.7 million in interest charges.
Sales rose to $143.3 million from $129.3 million last year, surpassing the Street’s estimate of $141 million.
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