FOOTHILL RANCH, Calif. — Wet Seal has terminated the employment of its CEO, Susan McGalla, and has begun a search for a new executive to head the struggling young women's apparel retailer.
Until such a person is found, Wet Seal president and COO and Steve Benrubi, CFO, will serve as co-principal execuitve officers and members of the office of the chairman, led by Hal Kahn, until a new CEO is elected by the board of directors.
For the month-to-date, Wet Seal's comps have declined between 13% and 14%.
During its first quarter ended April 28, Wet Seal reported a same-store sales decline of 7.7% and a net loss of $0.3 million.
For the second fiscal quarter, the company expects comparable store sales to decline between 10% and 11%, which is at the low end of its initial guidance range.
Wet Seal currently estimates second quarter loss before non-cash asset impairment and CEO severance costs will be between 6 cents and 7 cents per diluted share, as compared with its initial guidance of a loss between 3 cents and 6 cents per diluted share.
Wet Seal operates 553 stores in 47 states and Puerto Rico, including 470 Wet Seal stores and 83 Arden B stores.