Same-store sales at Hot Topic, a seller of trendy teen apparel and accessories, dropped for the fifteenth consecutive month Wednesday as teen retailers continue to take a beating from high unemployment and late back-to-school shopping.
The City of Industry company reported a 9 percent decline in same-store sales for July, compared with the same month a year ago. Hot Topic reported a 2.1 percent decline in same-store sales in June and a 9 percent drop in May.
Hot Topic, which had a hit with its “Twilight”-related apparel and merchandise, also lowered its guidance. The company now expects a loss of 14 cents per share when it reports second-quarter performance on Aug. 18.
During the second quarter, total sales dropped 4.9 percent. Sales at Hot Topic declined 5.5 percent, while sales at the company’s Torrid stores, which sell teen plus-size clothing, slipped 3.2 percent.
Hot Topic made the announcement after the stock market closed. Prior to the announcement, shares of Hot Topic traded down 10 cents, or 2 percent, to $5.26 for the day.
For reprint and licensing requests for this article, CLICK HERE.