Apparent Inventory Glut Pulls Wet Seal Net Down 50%

Wet Seal Inc., the struggling Foothill Ranch retailer of young women’s apparel, said net income for the first fiscal quarter declined 50% to $2.2 million, or 18 cents a share, from $4.4 million, or 34 cents a share, for the like period a year ago.

The company, apparently saddled with inventory from unsuccessful merchandising campaigns, had warned of the slump earlier this month.

Sales for the quarter ended April 29 increased 6% to $130.6 million. But sales at stores open at least a year, a key measure of performance in the industry, were down 5%.