Wednesday, mall and web based specialty retailer Hot Topic Inc. (HOTT) said that comparable store sales for December declined 10.9% and net sales decreased 9.8%. Looking forward, the company lowered its guidance for the fourth quarter 2009.
Hot Topic's total comparable store sales was down 10.9% for the five weeks from an increase of 4.3% in the year ago period. Total net sales for December were $119.0 million, a decline of 9.8% from the same period last year.
Segment-wise, Torrid's comparable store sales declined 3.7% compared to a decline of 1.7% in the prior year period and HotTopic division reported a decline of 11.9% from an increase of 5.2% last year.
Year-to-date net sales were $696.8 million, a decline of 2.7% form the year ago period. Comparable store sales decline was 4.6% compared to an increase of 0.7% last year.
Looking ahead, based on the lower than expected quarter-to-date sales performance Hot Topic now estimates earnings per share for 2009 fourth quarter in the range of $0.18 to $0.20, down from the previous guidance of $0.23 to $0.26. Comparable store sales are expected to decline in the range of 10% to 12%.
Wall street analysts currently expect earnings of $0.24 per share for the fourth quarter.
HOTT closed Wednesday's regular trading session at $5.96, up $0.05 or 0.85% on a volume of 1.12 million shares on the Nasdaq. In after hours the stock fell 6.71% or $0.40, trading at $5.56.
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