Hot Topic Raises Quarterly Expectations

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Hot Topic Inc. raised its first quarter profit target Wednesday, reporting that same-store sales climbed more than 7 percent in March as the DVD release of the vampire movie “Twilight” boosted sales of licensed items.

The City of Industry teen retailer forecast a profit of 1 cent to 2 cents per share on revenue growth in the “high-single” digit range at stores open at least one year. The company had earlier forecast a 1-cent loss to a 1-cent profit and comparable store sales in the mid-single digits due to lower consumer spending.

Analysts surveyed by Thomson Reuters had forecast 5.4 percent growth in revenue.

Hot Topic, which operates 679 Hot Topic stores and 158 Torrid stores, said comparable store-sales rose 7.1 percent in the five-week period ended April 4, up from a 3.5 percent decline a year ago.

Hot Topic shares closed up $1.03, or nearly 10 percent, to $11.76 in regular Nasdaq trading and were up another 3 percent in after-market trading following the earnings announcement.

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