Wet Seal Posts Wider Loss, Sees Sales Decline

Teen retailer Wet Seal Inc. posted a wider loss in its fiscal first quarter and forecast Monday that sales would fall at established stores this month. Its shares declined 11% after hours.

Wet Seal shares fell 57 cents to $4.63 in extended trading. In the regular session, the stock rose 16 cents to $5.20.

Foothill Ranch-based Wet Seal said it expected May same-store sales to fall by a high single digit percentage, in part because of insufficient inventory of young women’s tops and dresses. For the rest of the year, the company said, it anticipates mid-single digit increases in such sales.

Wet Seal recorded a net loss in the quarter ended April 29 of $13.7 million, or 22 cents a share. That compares with a loss of $8.6 million, or 23 cents, a year earlier, when the company had fewer shares outstanding.

The loss in the latest quarter was driven by $18.1 million in charges related to conversions of Wet Seal’s convertible notes and $5.6 million for stock compensation expense.