Segment Reporting

3 Months Ended

May 04, 2013

Segment Reporting [Abstract]

Segment Reporting

Segment Reporting

The Company operates exclusively in the retail apparel industry in which it sells apparel and accessory items, primarily through mall-based chains of retail stores, to female consumers with a young, active lifestyle. The Company has identified two operating segments (“Wet Seal” and “Arden B”). E-commerce operations for Wet Seal and Arden B are included in their respective operating segments.

Information for the 13 weeks ended May 4, 2013, and April 28, 2012, for the two reportable segments is set forth below (in thousands, except percentages):

13 Weeks Ended May 4, 2013	Wet Seal			Arden B			Corporate and Unallocated			Total
Net sales	$	122,799		$	17,646		$	—		$	140,445
Percentage of consolidated net sales	87		%	13		%	—			100		%
Operating income (loss)	$	9,553		$	558		$	(6,913	)	$	3,198
Depreciation and amortization expense	$	2,584		$	260		$	494		$	3,338
Interest income	$	—		$	—		$	40		$	40
Interest expense	$	—		$	—		$	(46	)	$	(46	)
Income (loss) before provision for income taxes	$	9,553		$	558		$	(6,919	)	$	3,192

13 Weeks Ended April 28, 2012	Wet Seal			Arden B			Corporate and Unallocated			Total
Net sales	$	126,175		$	21,770		$	—		$	147,945
Percentage of consolidated net sales	85		%	15		%	—			100		%
Operating income (loss)	$	9,324		$	(1,304	)	$	(8,461	)	$	(441	)
Depreciation and amortization expense	$	3,856		$	454		$	381		$	4,691
Interest income	$	—		$	—		$	38		$	38
Interest expense	$	—		$	—		$	(48	)	$	(48	)
Income (loss) before benefit for income taxes	$	9,324		$	(1,304	)	$	(8,471	)	$	(451	)

The “Corporate and Unallocated” column is presented solely to allow for reconciliation of segment contribution to consolidated operating income (loss), interest income, interest expense and income (loss) before provision (benefit) for income taxes. Wet Seal and Arden B segment results include net sales, cost of sales, asset impairment and other direct store and field management expenses, with no allocation of corporate overhead or interest income and expense. The application of accounting policies for segment reporting is consistent with the application of accounting policies for corporate reporting.

Wet Seal operating income (loss) during the 13 weeks ended May 4, 2013, and April 28, 2012, includes $1.1 million and $2.7 million, respectively, of asset impairment charges.

Arden B operating income (loss) during the 13 weeks ended May 4, 2013, and April 28, 2012, includes $0.5 million and $0.9 million, respectively, of asset impairment charges.

Corporate expenses during the 13 weeks ended May 4, 2013, include a $3.5 million benefit to adjust loss contingency charges for several litigation matters.