Hot Topic Shares Jump on Sales Data

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Shares in teen clothing retailer Hot Topic Inc. got a 10 percent boost after the company reported a decline in January same-store sales that was less than expected.


The City of Industry-based retailer said that January same-store sales fell 3.6 percent much better than the 6.4 percent drop Wall Street was expecting, according to a poll by Thomson Financial.


Total company sales for January fell 24 percent to $41.2 million.


The company backed its guidance of a profit of 25 to 29 cents per share for the quarter ahead of analysts’ expectations of 26 cents per share.


Same-store sales were down 7.2 percent for the fourth quarter that ended Feb. 2 and down 4.4 percent for the year, the company said.


Total sales fell 8.3 percent to $221 million for the fourth quarter and 3.1 percent to $728 million for the fiscal year. All periods include one less week than the prior fiscal year, Hot Topic added.


Shares were up more than 10 percent to $5.46 in early trading Thursday on the Nasdaq.

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