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Hot Topic comparable store impacted by negative July apparel sales
29 Jul '05
2 min read
Fashion accessories retailer Hot Topic Inc announced the comparable store sales month-to-date through July 27, 2005, have decreased approximately 5 percent from the same period last year. As a result, the company currently estimates that net income for the second quarter of 2005 will be approximately $0.02 to $0.04 per diluted share.
Betsy McLaughlin, Chief Executive Officer, said, "Hot Topic sales trends in July have been very disappointing. While the music related categories have remained strong and are producing positive comps, the comp sales trends in men's apparel, women's apparel and accessories have remained negative and are below their expectations.
Even with increased promotional activity versus last year, they are seeing comparable store decreases in their early back-to-school markets.
The previous sales and earnings guidance for the second quarter assumed continued strength in music along with improvement in two of the three negative comp categories.
Given the early results, they are revising their earnings guidance for the quarter to reflect the current trends. They will not have a true understanding of their back-to-school business until late August.
California based mall-based specialty retailer Hot Topic offers apparel, accessories and gifts to young men and women principally between the ages of 12 and 22. Torrid, the company's second concept, provides plus-size fashion-forward apparel and accessories that target young women principally between the ages of 15 and 29.
Betsy McLaughlin, Chief Executive Officer, said, "Hot Topic sales trends in July have been very disappointing. While the music related categories have remained strong and are producing positive comps, the comp sales trends in men's apparel, women's apparel and accessories have remained negative and are below their expectations.
Even with increased promotional activity versus last year, they are seeing comparable store decreases in their early back-to-school markets.
The previous sales and earnings guidance for the second quarter assumed continued strength in music along with improvement in two of the three negative comp categories.
Given the early results, they are revising their earnings guidance for the quarter to reflect the current trends. They will not have a true understanding of their back-to-school business until late August.
California based mall-based specialty retailer Hot Topic offers apparel, accessories and gifts to young men and women principally between the ages of 12 and 22. Torrid, the company's second concept, provides plus-size fashion-forward apparel and accessories that target young women principally between the ages of 15 and 29.
Hot Topic Inc
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