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Wet Seal reduces Q3 earnings guidance due to weak traffic

  • Wet Seal (WTSL) issues an Q3 earnings update. It expects EPS of -$0.12 to $-0.10 from a previous -$0.03 to -$0.02 (and vs. a consensus of -$0.02) and a comparable store sales increase in the "low-single digits" from the previous "mid-single digits" outlook.
  • CEO John Goodman: "Following our strong start to the quarter, mall traffic softened considerably during September and has continued into October, resulting in an increasingly promotional competitive environment in recent weeks. We expect to deliver improvement in most key financial metrics versus the year ago period, but the need to implement more extensive promotions than planned has caused us to lower our margin and earnings expectations for the quarter."
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