EXHIBIT 12.1
THE WET SEAL, INC.
COMPUTATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND
PREFERRED STOCK DIVIDENDS
(AMOUNTS IN THOUSANDS, EXCEPT RATIOS AND WHERE NOTED)
February 3, 2007 | January 28, 2006 | January 29, 2005 | January 31, 2004 | February 1, 2003 | |||||||||||||||
EARNINGS: | |||||||||||||||||||
(Loss) income from continuing operations before income taxes | $ | (12,530 | ) | $ | (29,032 | ) | $ | (164,080 | ) | $ | (61,287 | ) | $ | 10,309 | |||||
Fixed charges | 39,868 | 54,618 | 24,898 | 22,965 | 21,676 | ||||||||||||||
Accretion of non-cash dividends on convertible preferred stock | (23,317 | ) | |||||||||||||||||
Total earnings | $ | 27,338 | $ | 2,269 | $ | (139,182 | ) | $ | (38,322 | ) | $ | 31,985 | |||||||
FIXED CHARGES: | |||||||||||||||||||
Interest expense and amortization of deferred financing costs | $ | 23,177 | $ | 15,030 | $ | 2,663 | $ | — | $ | — | |||||||||
Estimated interest expense included in minimum gross rent (5) | 16,691 | 16,271 | 22,235 | 22,965 | 21,676 | ||||||||||||||
Accretion of non-cash dividends on convertible preferred stock | 23,317 | ||||||||||||||||||
Total fixed charges | $ | 39,868 | $ | 54,618 | $ | 24,898 | $ | 22,965 | $ | 21,676 | |||||||||
RATIO OF EARNINGS TO FIXED CHARGES | — | (1) | — | (2) | — | (3) | — | (4) | 1.48 | ||||||||||
(1) | Earnings were insufficient to cover fixed charges by $12.5 million. |
(2) | Earnings were insufficient to cover fixed charges by $52.3 million. |
(3) | Earnings were insufficient to cover fixed charges by $164.1 million. |
(4) | Earnings were insufficient to cover fixed charges by $61.3 million. |
(5) | Interest component is estimated to be one-third of minimum gross rent. |