Wet Seal Narrows 4th-Quarter Loss With Better Product Mix

Teen apparel retailer Wet Seal Inc. posted a narrower fiscal fourth-quarter loss Thursday as new fashion offerings reinvigorated sales.

The company, based in Foothill Ranch, posted a net loss of $2.8 million, or 5 cents a share, in the quarter ended Jan. 28, compared with a loss of $47.8 million, or $1.31, a year earlier amid lackluster demand.

“We were pleased to see improvements in merchandise margins due to a significantly lower overall markdown rate that resulted from stronger product assortment,” Chief Executive Joel Waller said.

Sales grew 19% to $141.4 million, driven by a 45% gain in sales at stores open at least a year.

Earnings were released after the close of regular trading. Shares of Wet Seal fell nearly 5% to $5.70 after hours, down from a close of $5.98.