Wet Seal Inc. announced it would pay $7.5 million and take corrective measures to settle a July class-action racial-discrimination lawsuit filed by three African American women from Delaware County who worked at malls in the region. The women, who had lost jobs at Wet Seal stores, announced that in the suit that the chain set out to fire African American employees because they did not fit the retailer's 'brand image'. Wet Seal had denied the allegations. The company called the settlement a 'no-fault resolution of the case'. The lawsuit was filed in federal court in California by Nicole Cogdell and Myriam Saint-Hilaire, who had worked in the Wet Seal store in King of Prussia, and Kai Hawkins, who had worked at several stores, including ones at the Gallery and Cherry Hill Mall. It cited e-mails and testimony from former managers that allegedly showed high-level Wet Seal executives instructing managers to fire African American employees, and 'diversify' by hiring and promoting white employees 'who fit the Wet Seal brand image'.

Wet Seal Inc. announced sales results for the first quarter ended May 4, 2013. For the month, the company reported net sales $140.4 million, down 5.1% change from last year. Comparable store sales were negative to 2.9% against negative 7.7% a year ago. Based on the strength of sales and margins, the company raised expectations for the first quarter of fiscal 2013. The company now expects earnings per diluted share of $0.00 to $0.01 before non-cash asset impairments and a $3.5 million benefit to adjust its loss contingency accrual, which includes the effect of the settlement described below. This compares to prior guidance of a net loss per diluted share in the range of $0.03 to $0.06. The company's updated guidance includes an estimated $1.8 million, or $0.02 per diluted share, of previously announced incremental legal defense costs versus the first quarter of fiscal 2012 for legal matters that arose in prior years.

Wet Seal Inc. announced that it has appointed Tamara Chamberlain as Vice President, General Merchandise Manager, for its Arden B Division, effective April 15, 2013. She will replace Sharon Hughes, former President and Chief Merchandise Officer for the Arden B Division, who resigned to pursue other opportunities. Ms. Chamberlain comes to Wet Seal with 15 years of experience in retail, having most recently served as General Merchandise Manager for contemporary women's retailer bebe stores Inc. Earlier in her career, she held various merchandising leadership roles at Pacific Sunwear of California Inc. and Nordstrom Inc.