NEW YORK (AP) — An analyst boosted Wet Seal's rating Tuesday, saying he sees signs of progress in the teen retailer's attempt to turn around its business.

THE SPARK: Edward Yruma of KeyBanc Capital Markets raised Wet Seal Inc.'s rating to "Buy" from "Hold" and provided a price target of $6.50.

THE BACKGROUND: The Foothill Ranch, Calif., company hired a new CEO this year and has been cutting jobs and weaker stores as part of a broad restructuring following a slump in sales.

John Goodman, who came on board in January, had been a Sears executive.

Wet Seal on May 9 said sales trends in its fiscal first quarter came in better than the company expected. A key revenue metric fell 2.9 percent, while overall sales fell 5 percent to $140.4 million.

THE ANALYSIS: Yruma is upbeat because of the improvement of the sales numbers during the quarter, which ended May 4. Wet Seal reports full results from the period next week.

He now expects the company to post a profit of 1 cent per share this year, rather than a loss of 6 cents per share. Analysts polled by FactSet predict a loss of 1 cent per share for the year.

A representative for Wet Seal did not immediately respond to an email seeking comment.

SHARE ACTION: Up 13 cents, or 3 percent, to $4.41 in morning trading. The stock touched $4.67 earlier in the session, the highest level since October 2011. Shares had already gained 55 percent in 2013.

About News.net

Publishing Services International Limited (PSIL) is the publisher and operator of a worldwide network of online news sites dedicated to delivering fair, accurate and relevant reporting from a variety of the world’s most trusted sources – from the biggest cities to the smallest towns.

We deliver positive and powerful messages to our readers, providing up‑to‑the‑second news that matters to the individual.

Our promise is to serve communities and individuals worldwide, delivering information that hasn’t always been available to them. We will give them back a voice – a voice that’s empowering because it is theirs – and provide a platform to communicate between themselves and the world.

We believe people are not just generic demographics; they are individuals with their own preferences and curiosities. We are about understanding these individuals, listening to them, and serving them.

We are the new pioneering spirit of news – we’re not talking to everyone, we’re talking with every one.

If you want your news, your voice, your way, on your time – we’ve got news for you.

 

FAQs

Email

If you have any questions or concerns please email us on support@news.net

Phone

  • Australia, Toll Free 1-800-983-421
  • Hong Kong, Toll Free 800-906-187
  • Singapore, Toll Free 800-852-3871
  • USA/Canada, Toll Free 1-800-830-4132

Advertise With Us

Interested in being awesome?
Contact us by email or phone.

Cancel