The 10-second takeaway
For the quarter ended April 28 (Q1), Wet Seal met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped and GAAP earnings per share dropped to zero.
Margins dropped across the board.
Wet Seal reported revenue of $147.9 million. The four analysts polled by S&P Capital IQ hoped for a top line of $149.3 million on the same basis. GAAP reported sales were 5.2% lower than the prior-year quarter's $156.0 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.02. The four earnings estimates compiled by S&P Capital IQ anticipated $0.02 per share. GAAP EPS contracted to zero from the prior-year quarter's $0.08.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 29.5%, 480 basis points worse than the prior-year quarter. Operating margin was 2.1%, 660 basis points worse than the prior-year quarter. Net margin was -0.2%, 530 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $145.0 million. On the bottom line, the average EPS estimate is -$0.05.
Next year's average estimate for revenue is $633.4 million. The average EPS estimate is $0.08.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Wet Seal is outperform, with an average price target of $4.12.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.