Wet Seal Exit Strategy for Arden B. Is Underway

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Arden B. will soon just be a memory, as its parent company, Wet Seal, Inc., announced it has already begun winding down that business, according to Wet Seal’s first quarter earnings call.

Wet Seal made the announcement of the closure last month.  Arden B. had generated sales of $60.4 million and represented 11% in consolidated sales for Wet Seal, Inc.

John Goodman,  CEO of Wet Seal reported that the closure is “two fold.”

One, the company is closing stores as quickly as possible through lease expirations and early termination provisions, according to Goodman.    And two,  Arden B. locations remain open,  but the company is in the process of transitioning those stores to Wet Seal brand merchandise.

Arden B’s net sales were $13.4 million for the first quarter, which was down 24% from 2013.  Ecommerce sales declined 20% to $1.5 million.

Wet Seal has cut all Arden B. receipts and all 54 stores will be turned over to Wet Seal and Wet Seal Plus merchandise in time for back-to-school season.  Thirty-one of these locations will feature Wet Seal Plus and the remaining 23 will feature Wet Seal product.

Wet Seal reports 8.4% increase in ecommerce sales for the first quarter.