Hot Topic, Inc. (NASDAQ: HOTT) is continuing to lose its momentum. The company had been a huge winner for being tied to the apparel from the Twilight teen vampire movie. But apparently vampire envy in apparel can get a stake through the heart too. The company’s same store sales are shrinking again, and now we have an earnings warning.
For the month of June, total company same store sales were -7.9%, worse than the -0.3% reported a year ago. Its Hot Topic specific same store sales were -7.2%, also down from -0.2% a year ago. Its Torrid brand store same store sales were -10.3%, down from -0.8% a year ago. Even the total sales were down by -5.8% at the total company.
On a quarter-to-date same store sales basis, the Hot Topic brand has seen a -6.8% and the Torrid brand has seen -8.7% on a same store sales basis.
As a result of the lower-than-expected sales so far in the quarter, the company now expects that earnings will be back at a loss in a range of -$0.07 to -$0.09 EPS. Analysts were already expecting a loss, but only -$0.05 according to Thomson Reuters. This reflects an anticipated comparable store sales drop down in the high single-digit range for the quarter.
Shares closed up over 2% at $7.04, but they are now down around $6.70 in after-hours trading.
Jon C. Ogg
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