Aug 19, 2009
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Hot Topic Q2 loss widens; sees Q3 profit below Street

Aug 19, 2009

Aug 19 (Reuters) - Hot Topic Inc (HOTT.O) posted a bigger quarterly loss and forecast third-quarter earnings below Wall Street expectations, sending its shares down 4 percent.

Hot Topic
"Skirts 4 Ways" at Hot Topic - Photo: www.hottopic.com
The company, which had posted a slightly lower-than-expected drop in July sales at stores open at least a year, expects to earn 11 cents to 13 cents a share for the third quarter. The forecast includes a charge of about 2 cents a share related to ShockHound, Hot Topic's online music store.

Analysts on average were expecting a profit of 15 cents a share, excluding special items, according to Reuters Estimates.

For the second quarter, Hot Topic, which sells music-inspired apparel and accessories mainly to teens, posted a loss of $3.2 million, or 7 cents per share, compared with a net loss of $0.5 million, or 1 cent a share, in the year-ago quarter.

Analysts on average were expecting the company to post a loss of 8 cents a share, before items.

Revenue came in at $157.8 million, with sales at its namesake division falling 6 percent to $119.8 million. Sales at the Torrid's segment fell 4 percent to $38 million.

Shares of the company were trading at $7.15 after the bell. They closed at $7.42 Wednesday 19 August on Nasdaq. (Reporting by Nivedita Bhattacharjee in Bangalore; Editing by Vinu Pilakkott)

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