Wet Seal, a Fashion Retailer That Caters to Teenagers, Fires Its ChiefThe

Wet Seal, a Fashion Retailer That Caters to Teenagers, Fires Its ChiefThe

teenage-fashion retailer Wet Seal fired its chief executive, Susan P. McGalla, with a phone call and has no replacement lined up yet.

The company, which has been struggling with declining sales, on Monday said it had dismissed Ms. McGalla. She was appointed chief executive in January 2011, and her contract ran through August 2014.

Though the company did not give a specific reason for Ms. McGalla’s dismissal, in a news release announcing her departure it said that so far in July sales at stores open at least a year had fallen about 13 percent from a year earlier.

In an e-mail to senior managers sent on Monday, Ms. McGalla wrote that the board telephoned her Friday night to tell her they were going “in a different direction.” Ms. McGalla said that while she wanted to tell the staff in person, “according to the board-directed terms of my separation, that was not possible.”

In Wet Seal’s first quarter, which ended in April, net sales fell by 5 percent to $147.9 million, while same-store sales fell 7.7 percent. At that time, Ms. McGalla said that Wet Seal, which also owns Arden B., was having trouble with its tops business, but that other categories, like shorts and dresses, were performing solidly.

Paul Lejuez, an analyst with Nomura, wrote in a note to clients that “operating in the ultracompetitive teen landscape with a weaker-than-average brand makes it difficult for the company to increase sales.”

Still, the timing of the dismissal was surprising to some, given that the back-to-school season, a critical period for retailers who cater to teenagers, is about to start.

Wet Seal is also facing a racial bias lawsuit. This month, three former Wet Seal managers filed a lawsuit against the company saying that it had a policy of firing or denying promotions to African-American employees. Wet Seal denied the allegations and said it planned to “vigorously defend” itself.

Mr. Lejuez pointed to the sales weakness, and not the lawsuit or a possible sale of the company, as the reason for Ms. McGalla’s dismissal.

Ms. McGalla said in her statement, “The company has been dealing with longer-term challenges,” adding, “I am confident that we have made significant progress and believe that the fundamentals are in place for the company to fulfill the turnaround plan that we anticipated.”

Ms. McGalla had been chief merchandising officer at American Eagle Outfitters, a rival teenage-clothing retailer, before joining Wet Seal.

Steven H. Benrubi, a spokesman for the company and its chief financial officer, did not return calls for comment Monday. As the board looks for a new chief executive, a new office of the chairman will oversee the company. That office includes Wet Seal’s chairman, its chief operating officer and Mr. Benrubi.