Hot Topic Inc. cut its fourth-quarter earnings outlook due to lower-than-expected same-store sales in the critical month of December, sending its stock sliding on Thursday.

The City of Industry-based teen retailer said after Wednesday’s market close that it now expects profit of between 21 cents and 24 cents per share for its last quarter of 2005, down from a previous estimate of 30 cents to 38 cents per share. The company’s fiscal fourth quarter runs from November through January.

The lowered guidance is directly related to December sales at stores open a least one year, which slipped 6.2 percent, the same as a year earlier. Quarter-to-date and year-to-date comparable store sales are down 4.5 percent and 3.6 percent, respectively. Total sales in December rose 6 percent to $132.9 million.

While sales of its rock apparel and women’s fashion tops remained strong in December, the company’s menswear and accessories categories lagged, Hot Topic said.

The revised guidance reflects a comparable store sales decline in the mid-single-digit range for the quarter and increased markdowns to aggressively address the resulting inventory risk, Hot Topic said.

“We are disappointed by our December results and their implications for the quarter,” said Betsy McLaughlin, chief executive, in a statement.

Hot Topic also said it expects a charge in the current quarter of approximately $250,000 in connection with the anticipated resolution of two California wage and hour lawsuits, for which an initial charge was taken in the company’s third quarter.

Shares of Hot Topic fell 6.8 percent to settle at $13.08 on Thursday.