The Wet Seal Inc. (Foothill Ranch, Calif.), operator of 564 Wet Seal, Contempo Casuals, Arden B. and Limbo Lounge stores, announced a precipitous drop in second quarter earnings – to $461,000 in 2000 from $3.6 million in 1999. For the 26-week period ended July 29, 2000, the company posted earnings of $2.7 million. as compared to $8.1 million for the 26-week period ended July 31, 1999. Total second-quarter sales actually rose, to $128 million from $126 million, but comparable store sales decreased 2.9 percent.
On average, the chain has experienced low single-digit comparative store sales increases for the last six-week period. It said it will start releasing monthly comparative store sales results for fiscal 2000 beginningwith the fiscal month of August.
Wet Seal Company has opened 25 stores this year, and closed 12. It said it plans to open 11 more stores during the year.
It also announced the appointment of Stephen Cox as senior vp and gmm for the Wet Seal and Contempo Casual chains. Cox has spent the last eight years at Limited Express, most recently as merchandise manager of denim and sweaters. He has also been with the I. Magnin, Gap, Robinson's and Bullocks retail organizations.
And Steven Strickland has been hired as senior vice president of creative and marketing. He comes from Brookstone, Inc., where he served as vice president of marketing. He was also the vice president of creative for Women's Specialty Retail, a division of U.S. Shoe, and held positions with Limited, Inc. and Burdine's.