between 2.10 - 2.20. The only thing holding this down is the results of others like Target and Kohl's. If Wet Seal can put up these numbers in this environment wait another 1-2 yrs and this baby is back to double digits.
Agree on all points. I think this quarter that included working off some residual inventory mistakes shows that WTSLA may now have the merchandising acumen to do better. Retailing in niche markets is always a risk on fashion. Thanks for sharing your thoughtful analysis!
I have no idea whether WTSLA's Feb-March-April etc...selling months will be strong. Nobody does. However, it is my understanding that as of November Wet Seal had reasonably good control of existing inventory and that excessive Fall-Winter inventory amounts would not be a problem for the December-January selling period. This means Wet Seal should have a nice clean foundation from which in to take in new Spring '08 merchandise and try to achieve good margin sell throughs to improve profitabilty going forward. I can't answer as to the success potential of the new incoming inventory saleability. However I am certain that Edmond Thomas's first priority when he came on board in October was to review with company buyers and merchandisers their Spring '08 future orders to check and double check that the company was on target with their fashion direction. I own Wet Seal stock and am willing to take a gamble that the company will be improving their merchandise, giving themselves a good shot at increasing same store sales.
Had been holding PSUN and WTSLA. I had always been leaning towards WTSLA but felt that PSUN was on the right path....no more. I sold all PSUN and moved into WTSLA. Bought another 20k at $2.10 this morning. I'm anticipating some possible downside due to some profit-taking, but with an increase in comps, increased earnings, no unusual charges, a confirmation that Arden will not be closed or sold-off, and a cash position that will only get better, this is going to perform well in 2008.