Josh Arnold • 16 Comments
Sep. 17, 2013, 10:13 AM
- The potential for major consolidation in the retail sector is in focus after Sycamore Partners reveals a 7.96% stake in Aeropostale.
- Teenager-focused retailers in general are having a good day, but a couple of names are leading the pack.
- Advancers: Pacific Sunwear (PSUN) +3.7%, Zumiez (ZUMZ) +1.6%, The Wet Seal (WTSL) +1.9%, Abercrombie & Fitch (ANF) +2.2%.
Sep. 6, 2013, 7:28 AM
- Analysts don't think the challenges facing apparel retailers in the U.S. will go away anytime soon.
- Pent-up demand in the housing and auto sector has crowded out consumer spending on clothes to push the sector into a highly-promotional stance heading into the Back to School and holiday seasons.
- While retailers selling appliances (CONN, HD, LOW) are forecast to benefit from the trend, mall-based chains (KSS, BKE, ANF, WTSL, ZUMZ, GPS, URBN, GES, PSUN, ARO, EXPR, AEO, JCP, M, DDS) are on watch.
Aug. 27, 2013, 5:21 PM
- Wet Seal (WTSL) soars 9% AH, adding to a late rally which propelled the shares 3.3% higher into the close.
- Net sales for Q2 rise 1% Y/Y.
- Comps growth comes in at 3.7%, far better than the numbers put up by some teen retailers earlier in the month.
- Gross margin expands by 680 bps due to "reduced markdown levels" — who knew that was possible in today's retail environment?
- "As we look at the second half of the year, were encouraged by how the business is positioned from both a financial and operational perspective," management says.
- Q3 outlook: Net loss of $0.02-0.03/ share on revenue of $135-138M. Comps growth in the mid-single digits. (PR)
Aug. 27, 2013, 4:08 PM
- Wet Seal (WTSL): Q2 EPS of $0.01 in-line.
- Revenue of $137.2M misses by $1.13M. Shares -3.49% AH. (PR)
Aug. 27, 2013, 12:10 AM
Aug. 26, 2013, 5:35 PM
Aug. 22, 2013, 1:28 PM| Aug. 22, 2013, 1:28 PM
Aug. 13, 2013, 3:40 PM
- Tell us something we don't know: Dougherty says "a lack of trend in teen retail coupled with weak results from competitors" will likely cap any upside in shares of Wet Seal (WTSL -2.9%).
- This comes despite the fact that the company's fortunes have "dramatically improved after returning to its fast fashion roots under CEO John Goodman."
- WTSL shares are initiated at Neutral.
- Well-documented retail woes: ARO, AEO.
Aug. 8, 2013, 8:49 AM
Aug. 6, 2013, 9:49 AM
- Specialty retailers commonly found at the mall are getting hit hard by a profit warning from American Eagle Outfitters (AEO -15.3%).
- The overall tone is that U.S. consumers will tighten spending in H2.
- Decliners: BKE -2%, ANF -5.4%, WTSL -1.8%, ZUMZ -1.7%, GPS -1.9%, URBN -2.6%, GES -2.5%, PSUN -4.4%, EXPR -2.5%, ARO -6.3%.
Jul. 26, 2013, 4:42 AM
Nasdaq (NDAQ) is one of a number of companies that fell victim to an East European hacking group that stole at least 160M payment-card numbers and caused combined losses of over $300M. Federal prosecutors yesterday charged five men in the largest cyber-crime case in U.S. history. Other victims include a Visa (V) licensee, J.C. Penney (JCP), JetBlue (JBLU), Heartland Payment Systems (HPY), Dow Jones (NWS) and Wet Seal (WTSL). Many of the breaches were known about, although prosecutors disclosed an attack on Nasdaq that wasn't previously publicized.| Jul. 26, 2013, 4:42 AM
Jun. 18, 2013, 11:39 AM
"A mid-single digit operating margin over the next 2-3 years is reasonable," says Piper's Stephanie Wissink of Wet Seal (WTSL +0.7%) in a cautious note. Although "sales stability, merchandise margin improvement, and cost leverage" should drive margin expansion, "the current environment" warrants trepidation regarding store growth expectations, she adds. Meanwhile, SA contributor Unbigoted Research says the stock could be "the turnaround story of 2013".| Jun. 18, 2013, 11:39 AM
May 29, 2013, 8:26 AM
Shares of Wet Seal (WTSL) are up 6.9% premarket after the retailer issues guidance above the consensus estimates of analysts. It's been a rocky road for the company over the last year, but the cadence from the retailer this quarter was good enough for KeyBanc to jump in with an upgrade to Buy from Hold and a new price target of $6.50.| May 29, 2013, 8:26 AM
May 28, 2013, 6:17 PM
May 28, 2013, 5:01 PM
More on Wet Seal's (WTSL) Q1: CEO John Goodman says management "has effectively stabilized the business." Comps breakdown: Namesake, -3.4%; Arden B., +0.9%; overall, -2.9%. Inventory per square foot falls 7.7% Y/Y, cash and cash equivalents total $111.7M (no debt), and share repurchases totaled 1.207M during the period. Outlook: Q2 EPS of $0-0.02/ share on revenue of $138-141M (consensus is -$0.02/share on $132.06M), mid-single digit comps growth, and margin expansion of 600-700 basis points. Shares +4.89% AH. (PR)| May 28, 2013, 5:01 PM
May 28, 2013, 4:44 PMWet Seal (WTSL): Q1 EPS of $0.01 in-line. Revenue of $140.4M beats by $3.2M. Shares +4.9% AH. (PR) | May 28, 2013, 4:44 PM