Hot Topic October same-store sales up 8.3 percent

CITY OF INDUSTRY, Calif. - Teen apparel retailer Hot Topic Inc. said Wednesday its same-store sales jumped 8.3 percent in October, far exceeding analyst projections, and the teen apparel retailer raised its third-quarter earnings estimates.

Same-store sales at Hot Topic namesake stores grew 8.4 percent, and same-store sales at its Torrid locations increased 7.8 percent. According to a Thomson Reuters survey, analysts projected a companywide same-store sales decline of 3.2 percent.

Same-store sales, or sales at locations open at least one year, is considered a key measurement of retailer performance because it measures sales at existing stores rather than newly opened ones.

In the third quarter, Hot Topic's total sales grew 4.7 percent to $197.3 million, with Hot Topic sales up 2.9 percent to $159.7 million and Torrid sales climbing 13.2 percent to $37.6 million. That topped the $187.6 million in revenue projected by analysts.

Hot Topic same-store sales rose 1.7 percent for the quarter while Torrid same-store sales fell 3 percent. Companywide, same-store sales advanced 1 percent in the quarter.

The company lifted its third-quarter profit estimate to a range of 16 cents to 17 cents per share, from a previous forecast of 12 cents to 15 cents per share. Analysts expect profit of 14 cents per share.

Hot Topic is scheduled to report its quarterly results Nov. 19.

In aftermarket trading, Hot Topic shares rose 74 cents, or 12.3 percent, to $6.75. They have ranged from $3.90 to $7.75 over the past year.

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