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Wet Seal August Same-store Sales Up 1.1% - Update

(RTTNews) - Wet Seal Inc. (WTSLA), a retailer of women's apparel and accessories, Thursday reported higher comparable store sales, also known as same-store sales, for the month of August 2010, helped by improved merchandise assortment at the Wet Seal brand and an increase in merchandise margin.

For the four-week period ended August 28, 2010, the Foothill Ranch, California-based retailer's total comparable store sales, a sales metric commonly applied to the outlets within the chain over a period of time, were up 1.1%, compared to a decline of 11.2% in the prior-year month.

The company's total sales for the month rose 4.2% from the last year to $52.6 million.

Commenting on the results, Ed Thomas, chief executive officer of The Wet Seal, Inc., stated, "August comparable store sales results were in line with our expectations. We are pleased with our results during this very important back-to-school selling month, with the overall sales trend improvements we experienced early in the month continuing through the back half."

Segment-wise, comparable store sales at Wet Seal business rose 1.5%, in comparison with a 12.6% decrease a year ago. Total Wet Seal sales grew 5.5% year-over-year to $46.0 million.

"Our improved merchandise assortment at Wet Seal led to a comparable store sales increase, and merchandise margin improvement over the prior year, in spite of a very challenging and promotional retail environment," Ed noted.

The company's Arden B segment posted a 1.8% drop in August comparable store sales, in line with the prior-year month. Total monthly sales were down 4.4% to $6.6 million.

"At Arden B, we continued to maintain strong merchandise margins despite a slight comparable store sales decline. We believe inventories at both divisions continue to be well-positioned as we move into the fall season," Ed added.

WTSLA closed Wednesday's trading at $3.04, up $0.02, on a volume of 1.16 million shares.