Wet Seal To exit Arden B business, reaffirms guidance

|About: The Wet Seal, Inc. (WTSL)|By:, SA News Editor

Wet Seal (WTSL) +9.2% premarket after saying it will wind down its Arden B brand, as it turns its attention to shoring up its namesake brand.

Arden B, which operates 54 mall-based stores and an e-commerce website, generated sales of $60M in the last fiscal year, ~11% of WTSL's total sales.

WTSL expects to record annual pretax cost savings of ~$1.3M beginning in the July quarter.

Reaffirms guidance for the April quarter of a loss of $0.16-$0.19/share and a same-store sales decline in the mid- to high teens.