UPDATE 1-Hot Topic posts narrower-than-expected Q1 loss

miércoles 21 de mayo de 2008 22:53 CEST
 

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May 21 (Reuters) - Teen-clothing retailer Hot Topic Inc HOTT.O posted a narrower-than-expected first-quarter loss as higher sales at its Torrid plus-size chain helped offset a fall in revenue at the company's namesake stores.

Hot Topic, which sells rock n' roll-inspired apparel and accessories as well as music, posted a quarterly net loss of $1.4 million, or 3 cents a share, compared with $0.8 million, or 2 cents a share, a year earlier.

The first quarter includes an expense of 1 cent a share related to Hot Topic's online music venture.

Analysts, on average, had expected the mall-based retailer to post a loss of 4 cents, before special items, according to Reuters Estimates.

Sales at the company's Torrid stores grew about 15 percent, while sales at its Hot Topic stores fell 2.5 percent.

The company, which also operates the Torrid plus-size chain for young women, said total sales rose 1.1 percent to $159.0 million. Wall Street analysts had expected revenue of $158.4 million.

Hot Topic, which has been upgrading stores and merchandise in an attempt to reverse a lingering slump, has avoided excessive discounts that eat into profit margins, and scaled back on promotional activity during non-peak traffic periods.

However, the company, whose rivals include Abercrombie & Fitch (ANF.N: Cotización), American Eagle Outfitters Inc (AEO.N: Cotización) and Wet Seal WTSLA.O, saw sales at its stores open at least a year drop about 3 percent in the quarter.   Continuación...