The Wet Seal (WTSL), a multi-channel specialty retailer, remains under sharp selling pressure after it late Wednesday reported a wider Q3 net loss and lower revenues and margins and warned of potential bankruptcy. Shares traded down to an all-time-low of $0.09 in Thursday’s session; the stock remains down more than 64% in afternoon trading.
The company reported non-GAAP adjusted net loss for the quarter of $0.28 per diluted share, compared with $0.09 net loss per share in Q3 2013. Capital IQ provided a Street estimate of $0.28 net loss per share, but this may not be comparable.
Net sales were $104.3 million, down 9% from $114.9 million reported for the same quarter last year but came in higher than the $93.1 million Street estimate. Wet Seal, which had already engaged outside advisers to seek strategic and financial alternatives, indicated that it may file for bankruptcy protection upon failure to meet its immediate liquidity needs.