Hot Topic Sales Fall Less Than Expected

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Hot Topic Inc. exceeded Wall Street expectations by reporting that June same-store sales fell only slightly.


Same-store sales at Hot Topic brand stores were down 0.2 percent, while same-store sales at Torrid brand stores fell 0.8 percent, the City of Industry-based retailer said after Wednesday’s market close. Torrid is aimed at plus-sized teens.


Company-wide, same-store sales fell 0.3 percent in June, much better than the 3.1 percent drop that analysts polled by Thomson Financial had expected. Total sales for the five weeks ended July 5 rose 3.8 percent to $63.2 million.

Hot Topic shares were up 5 cents, or 1 percent, to $5.70 in mid-morning trading Thursday after gaining 13 cents, or 2.3 percent in aftermarket trading Wednesday following the report’s release.

So far this year, same-store sales at the company’s fashion-forward apparel stores are down 1.8 percent, while its total sales are up 2.4 percent to $270 million.

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