Profit at Wet Seal Surges on Denim Sales

Wet Seal Inc. said its profit surged nearly eightfold in the fiscal second quarter as its trendy denim offerings struck a chord with girls and young women.

In one of the rosiest reports recently from an apparel retailer, the Foothill Ranch company said net income shot up to $3.6 million, or 18 cents a share, compared with $461,000, or 2 cents, a year ago. Analysts had expected earnings of 15 cents a share. Per-share results are adjusted to reflect a 3-for-2 stock split last month.

Sales for the quarter ended Aug. 4 rose 5.8% to $135.6 million. Sales at stores open at least a year increased 3.4% and have exceeded expectations so far this month, the company said.

The company’s stock gained $1.76 a share, closing at $18.25 in Nasdaq trading.