Wednesday, June 13, 2001, 11:40 AM ET
The Wet Seal sees a possible stock split on the horizon
California-based The Wet Seal Inc. (Nasdaq:WTSLA) filed a preliminary proxy with the Securities and Exchange Commission on Monday for a special shareholders meeting to increase the Company's authorized common shares for the specific purpose of implementing a 3-for-2 stock split.
The proxy urged shareholders to vote in favor of the proposal "so that the stock split can be effected as promptly as possible." The date of the shareholder meeting has not been released, but it is expected to be held during the first part of July.
An additional notice released on Monday further qualified the Company's intentions, stating that favorable market conditions must continue before officially declaring a stock split.
The Wet Seal currently has 20 million shares authorized, 13 million shares outstanding and 7.1 million in the float. Shareholders will be voting to increase the authorized shares to 60 million.
SplitTrader analysts will monitor WTSLA more closely as we near the July meeting.
About the Company:
The Wet Seal, Inc. is a nationwide specialty retailer of fashionable and contemporary apparel and accessory items designed for consumers with a young, active lifestyle. As of 5/01, the Company operated 563 stores. For the 13 weeks ended 5/5/01, sales rose 6% to $137.9M. Net income totaled $5.4M, up from $2.2M. Results reflect the addition of new stores, a 3.5% increase in same store sales and higher margins due to lower merchandise costs.
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