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Wet Seal Inc. (WTSLA) filed Quarterly Report for the period ended 2011-10-29.
Wet Seal Inc. has a market cap of $280.5 million; its shares were traded at around $3.1 with a P/E ratio of 13.48 and P/S ratio of 0.48.
This is the annual revenues and earnings per share of WTSLA over the last 10 years. For detailed 10-year financial data and charts, go to 10-Year Financials of WTSLA.
Highlight of Business Operations:
Wet Seal’s operating income increased to 10.4% of net sales during the 13 weeks ended October 29, 2011, from 10.0% of net sales during the 13 weeks ended October 30, 2010. The increase in operating income, as a percentage of sales, was due primarily to a decrease in the write down of long-lived assets identified during our quarterly impairment evaluation, an increase in merchandise margin as a result of higher initial markup rates and a decrease in inventory shrink, partially offset by an increase in occupancy costs due to the deleveraging effect of negative comparable store sales as well as an increase rent and common area maintenance for newly opened stores, compared to the prior year. During the 13 weeks ended October 29, 2011, and October 30, 2010, the asset impairment charges, as discussed above, were $0.2 million and $1.0 million, respectively.The comparable store sales decrease during the 13 weeks ended October 29, 2011, was due to a 10.1% decrease in comparable store average transactions, partially offset by a 4.2% increase in comparable store average dollar sales per transaction. The increase in the comparable store average dollar sales per transaction resulted from a 9.4% increase in our average unit retail prices, partially offset by a 5.0% decrease in units purchased per customer. The net sales decrease was attributable to the comparable sales decline and a $1.4 million decrease in net sales in our internet business, partially offset by an increase in the number of stores compared to the prior year.
The comparable store sales increase during the 39 weeks ended October 29, 2011, was due primarily to an increase of 6.7% in comparable store average dollar sales per transaction, partially offset by a decrease of 1.4% in comparable store average transactions. The increase in comparable store average dollar sales per transaction resulted from an 8.6% increase in units purchased per customer, partially offset by a 2.4% decrease in our average unit retail prices. The net sales increase was attributable to the comparable store sales increase and the increase in the number of stores compared to the prior year, partially offset by a $0.6 million decrease in net sales in our internet business.
Wet Seal’s operating income increased to 11.0% of net sales during the 39 weeks ended October 29, 2011, from 9.5% of net sales during the 39 weeks ended October 30, 2010. The increase in operating income, as a percentage of sales, was due primarily to an increase in merchandise margin as a result of lower markdown rates, a decrease in inventory shrink, and a decrease in occupancy costs due to the leveraging effect of positive comparable store sales. Additionally, during the 39 weeks ended October 29, 2011, and October 30, 2010, operating income included asset impairment charges of $1.0 million and $2.1 million, respectively, to write down the carrying value of long-lived assets that were identified during our quarterly impairment evaluations.
The comparable store sales decrease during the 39 weeks ended October 29, 2011, was due to a 4.5% decrease in comparable store average transactions, partially offset by a 4.4% increase in comparable store average dollar sales per transaction. The increase in the comparable store average dollar sales per transaction resulted from a 13.5% increase in our average unit retail prices, partially offset by an 8.2% decrease in units purchased per customer. The net sales increase was attributable to the increase in the number of stores compared to the prior year, partially offset by the comparable store sales decrease and a $1.9 million decrease in net sales in our internet business.
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