Wet Seal swings to profit in quarter

Teen fashion retailer Wet Seal Inc. posted a better-than-expected profit as it reined in inventories and expenses, sending shares up 6.3%.

Net income was $7.6 million, or 7 cents a share, contrasted with a loss of $14 million, or 22 cents, a year earlier, when debt-related charges and stock compensation costs hurt results. Sales rose 10% to $138 million.

Results were driven by improved fashion and color choices, coupled with better inventory and cost control, Chief Executive Joel Waller said.

For the second quarter, Foothill Ranch-based Wet Seal said it expected to earn 5 cents to 8 cents a share, below analysts’ forecast of 9 cents.

The company said it expected same-store sales in May and the current quarter to rise in the low-single-digit range. Same-store sales are a measure of retail strength and track sales at stores open at least one year.

Investors did not seem concerned about the lower-than-expected outlook, as Wet Seal shares closed up 35 cents at $5.93.