The 10-second takeaway
For the quarter ended Feb. 2 (Q4), Wet Seal beat slightly on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted slightly. Non-GAAP earnings per share dropped to a loss. GAAP earnings per share shrank to a loss.
Margins contracted across the board.
Wet Seal tallied revenue of $161.7 million. The five analysts polled by S&P Capital IQ wanted to see sales of $159.3 million on the same basis. GAAP reported sales were the same as the prior-year quarter's.
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 -$0.06. The four earnings estimates compiled by S&P Capital IQ averaged -$0.06 per share. Non-GAAP EPS were -$0.06 for Q4 compared to $0.03 per share for the prior-year quarter. GAAP EPS were -$0.97 for Q4 versus $0.01 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 24.8%, much worse than the prior-year quarter. Operating margin was -10.8%, much worse than the prior-year quarter. Net margin was -53.1%, much worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $137.6 million. On the bottom line, the average EPS estimate is -$0.01.
Next year's average estimate for revenue is $559.5 million. The average EPS estimate is $0.03.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 192 members out of 229 rating the stock outperform, and 37 members rating it underperform. Among 61 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 47 give Wet Seal a green thumbs-up, and 14 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Wet Seal is hold, with an average price target of $2.85.
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