By Viraj Nair
BANGALORE, March 3 (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.
Same-store sales at Hot Topic fell 7 percent in February.
Analysts on average were expecting a 13.1 percent drop in same-store sales, according to Thomson Reuters data.
Sales at the company's namesake division fell 11.2 percent, but rose 6.2 percent from January.
The 'Alice in Wonderland' license, which saw products arrive in early February, was a contributor to the improvement in Hot Topic division same-store sales, analyst Sozzi said.
Sales at Hot Topic's Torrid division, which sells apparel, shoes and accessories for plus-size females, were up 8.5 percent.
'While Torrid division comps accelerated month to month, the Hot Topic division was the major swing point,' he added.
Shares of the City of Industry, California-based retailer closed at $6.25 Wednesday on Nasdaq.
(Reporting by Viraj Nair; Editing by Unnikrishnan Nair) Keywords: HOTTOPIC/ (viraj.nair@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging: viraj.nair.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
BANGALORE, March 3 (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.
Same-store sales at Hot Topic fell 7 percent in February.
Analysts on average were expecting a 13.1 percent drop in same-store sales, according to Thomson Reuters data.
Sales at the company's namesake division fell 11.2 percent, but rose 6.2 percent from January.
The 'Alice in Wonderland' license, which saw products arrive in early February, was a contributor to the improvement in Hot Topic division same-store sales, analyst Sozzi said.
Sales at Hot Topic's Torrid division, which sells apparel, shoes and accessories for plus-size females, were up 8.5 percent.
'While Torrid division comps accelerated month to month, the Hot Topic division was the major swing point,' he added.
Shares of the City of Industry, California-based retailer closed at $6.25 Wednesday on Nasdaq.
(Reporting by Viraj Nair; Editing by Unnikrishnan Nair) Keywords: HOTTOPIC/ (viraj.nair@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging: viraj.nair.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.