UPDATE 1-Wet Seal Q1 profit beats Wall Street; sees weak Q2

* Q1 EPS $0.06 vs est. $0.05

* Q1 rev $137.8 mln vs est. $138.8 mln

* Sees Q2 EPS $0.02-$0.04 vs est. $0.05

May 20 (BestGrowthStock) – Wet Seal Inc’s (WTSLA.O: ) first-quarter
profit edged past Wall Street estimates, helped by improving
merchandise margins, but the specialty retailer forecast a weak
second quarter due to soft business in May.

For the second quarter, the company sees earnings of 2
cents to 4 cents a share, short of analysts’ expectations of
earnings of 5 cents a share, according to Thomson Reuters
I/B/E/S.

Sales are expected to range between $134 million and $137
million in the second quarter, also shy of analysts’
expectations for sales of $144.7 million. Same-store sales for
the period are seen flat to down 3 percent.

For the first quarter ended May 1, the specialty retailer,
which runs the Arden B chain in addition to its namesake
stores, earned $3.1 million, or 3 cents a share, compared with
$5 million, or 5 cents last year.

Excluding items, the company earned 6 cents a share, while
analysts on average had expected earnings of 5 cents a share.

Sales rose 4 percent to 137.8 million, Wall Street
forecasts of $138.8 million. Same-store sales were up 2
percent.

Shares of the company closed at $4.03 Thursday on Nasdaq.

Stock Report

(Reporting by Abhishek Takle in Bangalore; Editing by
Unnikrishnan Nair)

UPDATE 1-Wet Seal Q1 profit beats Wall Street; sees weak Q2