Wet Seal to Lower Prices, Cut Inventory

Wet Seal Inc., a specialty women’s apparel retailer, said Wednesday that it must mark down merchandise to clear inventory, an action that will hurt its fourth-quarter profit margins.

The Foothill Ranch company did not provide more information.

Two months ago, Wet Seal said same-store sales at two core units were down through the third week of the fourth quarter. Wet Seal said this factor would likely result in fourth quarter earnings and sales being below current analysts expectations.

The company’s press release was issued after the stock market closed. Its shares rose 50 cents to close at $12 a share in Nasdaq trading.