Thursday, March 4, 2010

Hot Topic Feb comp sales ahead of estimates

Reuters

Teen clothing retailer Hot Topic Inc's same-store sales came in ahead of estimates, after missing expectations for three straight months, as sales improved sequentially at its namesake division.

The company, which sells rock 'n' roll-inspired clothing as well as music and accessories to teenagers, also forecast a fall in same-store sales in the low teens range this month, as sales of teen vampire flick 'Twilight' peaked in March last year, a spokesman said on a conference call.

Last month, the company decided not to sell DVDs of Twilight sequel 'New Moon'. However, shopping before Easter, which falls on April 4, could boost the results in March.

"I think that comp might be a little conservative just because of the buying that takes place in the lead up to Easter," Wall Street Strategies analyst Brian Sozzi, who expects a same-store sales decline in the high single digit range, said.

Link to full article: http://www.reuters.com/article/idUSSGE6220KH20100303