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)
January 30, 2010 | January 31, 2009 | February 2, 2008 | February 3, 2007 | January 28, 2006 | |||||||||||||
EARNINGS: | |||||||||||||||||
Income (loss) from continuing operations before income taxes | $ | 22,366 | $ | 31,476 | $ | 23,610 | $ | (12,530 | ) | $ | (29,032 | ) | |||||
Fixed charges | 21,473 | 23,063 | 19,827 | 48,646 | 54,738 | ||||||||||||
Accretion of non-cash dividends on convertible preferred stock | (23,317 | ) | |||||||||||||||
Total earnings | $ | 43,839 | $ | 54,539 | $ | 43,437 | $ | 36,116 | $ | 2,389 | |||||||
FIXED CHARGES: | |||||||||||||||||
Interest expense and amortization of deferred financing costs | $ | 973 | $ | 2,863 | $ | 1,136 | $ | 31,955 | $ | 15,150 | |||||||
Estimated interest expense included in minimum gross rent(3) | 20,500 | 20,200 | 18,691 | 16,691 | 16,271 | ||||||||||||
Accretion of non-cash dividends on convertible preferred stock | 23,317 | ||||||||||||||||
Total fixed charges | $ | 21,473 | $ | 23,063 | $ | 19,827 | $ | 48,646 | $ | 54,738 | |||||||
RATIO OF EARNINGS TO FIXED CHARGES | 2.04 | 2.36 | 2.19 | — | (1) | — | (2) | ||||||||||
(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) | Interest component is estimated to be one-third of minimum gross rent. |