By
Reuters
Reuters
Published
May 19, 2011
May 19, 2011
Hot Topic first quarter edges past estimates
By
Reuters
Reuters
Published
May 19, 2011
May 19, 2011
May 18 - Hot Topic Inc's quarterly results narrowly beat Wall Street expectations, as cost-cuts and revamps at its stores began to show results and the teen apparel retailer forecast a second-quarter loss largely in line with estimates.
![]() Polluted brand, sold by Hot Topic |
The company, which had been underperforming peers for at least two years now as its merchandise failed to attract shoppers, forecast a loss of 9-11 cents a share. Analysts had expected a loss of 10 cents a share, excluding items.
Hot Topic has been looking for ways to lure shoppers and recently hired a consulting firm to review its business.
It also shut its underperforming music website ShockHound.com, changed its logo and has been making telling changes to its merchandise -- mixing its goth and punk look with friendly cartoon T-shirts.
The company announced its cost-cutting plans last year, saying it will close 40-50 stores -- about 5-6 percent of its total store base -- by the end of the first quarter.
For April, the company posted a same-store sales rise of 10.5 percent, way ahead of estimates.
For the first quarter, Hot Topic, which sells music and band T-shirts and accessories, posted a loss of $7.7 million, or 17 cents a share, compared with a loss of $1.8 million, or 4 cents a share, a year ago.
On an adjusted basis, the company broke even. Sales fell marginally to $161.3 million.
Analysts, on average, expected it to post a loss of 1 cent on revenue of $160.9 million, according to Thomson Reuters I/B/E/S.
Shares of the San Jose, California-based company closed at $7.66 on Nasdaq on Wednesday.
(Reporting by Viraj Nair and Nivedita Bhattacharjee ; Editing by Prem Udayabhanu)
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