(HOTT) Hot Topic Comps Steady

HOT Topic Inc. (HOTT) reported positive same-store sales of 0.4% for the month of June, repeating the performance in its sequentially preceding quarter and way ahead of the 2.1% fall in the year-earlier period.

The company reported the third consecutive month of positive same-store sales after 23 months on the trot of negative comparables.  Prior to it, the company had last registered same-store sales growth of 3.1% way back in April 2009.

However, Hot Topic recorded a 1.8% year-over-year decline in total sales for the month, totaling $58 million.

June Sales Update

Hot Topic: Segment same-store sales inched down 1.5% in June 2011, improving nominally from a 1.6% drop in the prior-year period. Total sales of $43.2 million decreased 3.7% year over year for the month.

Torrid: Torrid registered same-store sales growth of 7% compared with a decline of 3.8% in the prior-year period. Sales improved 4.9% year over year to reach $14.8 million in the month.

Year-to-date Sales

Year to date, the company reported asame-store sales increase of 0.2%, reversing the fall of 7.3% in the prior-year period. Total sales for the period slipped 1.2% to $261.3 million.

Hot Topic: Year to date, same-store sales declined 1.3%. Though in the red, comparables improved considerably from a drop of 9.6% in the prior-year quarter. Sales for the period plunged 3.2% to $188.9 million.

Torrid: Torrid recorded same-store sales growth of 5.1% compared with 0.7% in the year-ago period. Sales improved 4.7% year over year to reach $72.4 million for the year-to-date period.


The company estimates second-quarter 2011 loss per share between 9 cents and 11 cents, on the back of flat same store sales growth.

We maintain our long-term Neutral recommendation on Hot Topic Inc. The quantitative Zacks #3 Rank (short-term Hold rating) for the company also indicates no clear directional pressure on the stock in the near term.

Based in City of Industry, California, Hot Topic Inc. is a shopping mall-based specialty retailer operating the Hot Topic and Torrid store concepts across the U.S. as well as the e-space music discovery concept, ShockHound. The company competes with Abercrombie & Fitch Co. (ANF).

ABERCROMBIE (ANF): Free Stock Analysis Report

HOT TOPIC INC (HOTT): Free Stock Analysis Report

Zacks Investment Research

About vitalstocks

This is a sample profile field. Vitalstocks is the operating company for Stockbloghub. This will place the picture of the author or company in the profile. Here is another extra line of information.


Powered by Facebook Comments

Similar Posts: | | | | Apparel Stores | Services

RSS feeds: Abercrombie & Fitch Company | ANF | Hot Topic Inc. | HOTT | Apparel Stores | Services |

Other Posts by | RSS Feed for this author