Hot Topic improves performance in fashion apparel category

During the first quarter of fiscal 2012, Hot Topic, Inc. began including internet sales in the computation of comparable sales. All prior year comparable sales results have been adjusted.

The company increased its second quarter guidance to a loss per share in the range of $0.02 to $0.03 per share. Previous guidance for the company was a loss per share in the range of $0.04 to $0.06 per share based upon a comp sales increase in the low to mid-single-digit percentage range.

Lisa Harper, Chairman of the Board and CEO, said, “We are pleased with our progress in the fashion apparel category and we continue to make solid gains in licensing at Hot Topic. At Torrid we are delighted to report that our new Torrid locations in strip centers are exceeding our internal expectations and that our strategy of moving to a vertical sourcing model has positioned us for strong margin gains.

In addition we feel strongly that we ended the second quarter with the right merchandise assortment and that our inventory levels are on plan as we enter the back half of 2012.”

The company issued third quarter earnings guidance (13 weeks ending October 27, 2012) in the range of $0.08 to $0.10 per share, as compared to earnings per share of $0.07 last year. This guidance is based upon a comp sales increase in the low-single-digit percentage range.

The company also issued fourth quarter earnings guidance (14 weeks ending February 2, 2013) in the range of $0.23 to $0.27 per share, as compared to earnings per share of $0.21 last year. This guidance is based upon a comp sales increase in the low to mid-single-digit percentage range.

Hot Topic, Inc. is a mall and web based specialty retailer operating the Hot Topic and Torrid concepts. Hot Topic offers music/pop culture-licensed and music/pop culture-influenced apparel, accessories, music and gift items for young men and women.

Hot Topic Inc