Wet Seal Inc. was one of few apparel stocks that rose Thursday, after the teen clothing retailer reported same-store sales fell 2.9 percent in June, just beating analyst expectations.
Same-store sales, or sales at stores open at least a year, is a key indicator of retailer performance, since it measures growth at existing stores rather than newly opened ones.
Analysts surveyed by Thomson Financial, on average, expected same-store sales to slip 3 percent.
The company also said it would take a one-time interest charge in the second quarter, but slightly raised its forecast for adjusted profit, to 9 cents to 11 cents per share. Analysts expect a profit of 9 cents per share.
Roth Capital Partners analyst Elizabeth Pierce said in a note to investors on Thursday she was "slightly surprised" by the negative same-store sales, which followed two positive months, but reiterated her "Buy" rating on the stock.
"Sales were driven by strong performance in fashion and basic denim, both of which are key fall categories and thus bodes well for back-to-school, screen tees and dresses," she wrote.
Shares rose 19 cents, or 4 percent, to $4.98. The stock has traded between $1.81 and $5.99 during the past year.
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