Wet Seal Shares Climb 15% on Strong Fiscal 4th Quarter

Wet Seal Inc. shares climbed 15% Thursday after the retailer of clothing for young women said it expects earnings to exceed analysts’ estimates in the fiscal fourth quarter because of strong sales.

The Foothill Ranch company’s stock closed at $40.25, up $5.31 a share, in Nasdaq trading.

The company, whose chains include Contempo Casuals, Arden B. and Wet Seal, said Wednesday it expects to earn 93 cents to 95 cents a share for the quarter ended Jan. 30.

Analysts predicted the company would earn 81 cents a share, according to a First Call survey.

This would be the second quarter in a row that Wet Seal’s results beat forecasts. In the third quarter, the company earned $5.4 million, or 41 cents a share, topping analysts’ estimates of 38 cents a share.

For the full year, earnings should range from $1.89 to $1.91 a share, Wet Seal said, which is also above the $1.78 a share projected by analysts. The company earned $1.53 a share the previous year.

Wet Seal operates 454 stores in 42 states, the District of Columbia and Puerto Rico. This year, the company plans to open 105 stores.