Earnings Report Sends Wet Seal Shares Down

Wet Seal Inc.’s stock dropped 11% Wednesday, a day after the Foothill Ranch-based apparel retailer posted lower quarterly earnings and said it will scale back expansion scheduled for next year. Shares of the company, which misjudged the fashion preferences of its young customers, closed at $15.06, down $1.88. About 1.3 million shares changed hands, more than four times the average daily volume over the last three months.