Quarterly Loss Sends Wet Seal Tumbling

Wet Seal Inc., a retailer of clothing for teenage girls, Thursday reported a loss in its fiscal second quarter as sales of shirts plunged, and forecast a loss in the third quarter.

The company had warned that its second-quarter loss probably would be worse than forecast. Nonetheless, the news caused Wet Seal’s stock price to tumble 8%, or 92 cents, to $10.60 on Nasdaq.

The Foothill Ranch-based company had a net loss of $13.4 million, or 45 cents a share, contrasted with net income of $3.67 million or 12 cents, in the year-earlier period.

The company had been expected to have a loss of 40 cents a share in the second quarter and a profit of 4 cents this quarter, according to the average estimates of analysts surveyed by Thomson First Call.

Sales dropped 14% to $126 million in the period ended Aug. 2. Sales at stores open at least a year -- an important marker for a retailer -- fell 20% and may drop 10% this quarter, company executives said in a conference call.

Wet Seal, which has had four straight quarterly losses, has discounted merchandise as sales fell from $161.1 million in the fourth quarter.

In May, the retailer hired former Disney Stores President Peter Whitford as chief executive after firing Kathy Bronstein.

On Wednesday, Whitford announced key management changes, including the appointment of former Walt Disney Co. executive Allan Haims as president of the Wet Seal stores unit.

Wet Seal operates 621 Wet Seal, Arden B. and Zutopia stores.