Teen Goth apparel retailer Hot Topic Inc. reported lower second-quarter earnings late Wednesday, sending shares tumbling nearly 9 percent Thursday.
Hot Topic reported a second quarter loss of $1.7 million (-4 cents per share) almost double its loss of $900,000 (-2 cents) reported for the same period a year earlier, missing analysts' estimates of a loss of 3-cent loss, according to a Thomson Financial poll. The company cited the rising costs for materials as well as general and administrative expenses for the increased loss.
Sales for the City of Industry-based teen clothing retailer increased less than 1 percent to $162 million, beating Wall Street's predictions of $160 million.
Same store sales fell 5.8 percent for the quarter and the company also said that it expects earnings of 13 cents to 16 cents per share for the third quarter along with more same-store sales declines. Wall Street was forecasting third-quarter earnings per share of 18 cents.
Shares in Hot Topic shed 77 cents, or 8.9 percent, to $7.98 in early trading Thursday on the Nasdaq. Shares are down 43 percent for the year.
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