Dallas, Texas 03/04/2014 (FINANCIALSTRENDS) – Apparel store, The Wet Seal, Inc. (NASDAQ:WTSL) reported its fourth quarter and full year operations results for period ending 2nd February, in the first week of February.
Fourth quarter Highlights
The apparel maker which focuses on designing cloths targeted at young women reported that for the fourth quarter, its net sales for its flag ship Wet Seal line of cloths was down 18.8 percent, while Arden B line of cloths was down by a significant 45.6 percent. Same store sales numbers for the reporting quarter too saw a significant dip. Wet Seals line saw same store numbers go down by 15.4 percent, where as Arden line post a 25 percent dip in same stores comparison.
Full Year Highlights
For the full year too, the sales of this premier cloths line took a big hit. Wet Seals line was down 5 percent, where as Arden B line was down by a huge 29.2 percent. Over all, as a group, the sales was down by significant 8.7 percent in the fiscal year.
Challenging Fiscal Year
Explaining the challenges faced by the cloths line during the fiscal year, The Wet Seal, Inc. (NASDAQ:WTSL) CEO John D. Goodman has been quoted to have said that, “We had a difficult fourth quarter, marked by ongoing softness in mall traffic, a highly promotional environment throughout the teen sector and elements of our assortments that did not resonate as well as we anticipated with our customers. This led to a greater than expected decline in comp store sales and pressured our merchandise margins”.
Turn Around Efforts
Highlighting the efforts being put in by the firm to turn the sales around, the CEO disclosed that he has called for a more focused and disciplined approach in operations which involves a closer scrutiny on the expenses the firm is putting up with as well as a more lean inventory management.