Hot Topic Reports 5.8 Percent Decline in 3rd Quarter
Pop-culture mall retailer Hot Topic Inc. reported a same-store-sales decrease of 5.8 percent for its third fiscal quarter of 2009. The City of Industry, Calif.–based retailer announced the sales results Nov. 18 during a conference call with Wall Street analysts.
Total sales for Hot Topic’s third quarter decreased 3.9 percent to $189.6 million, compared with $197.3 million for the 2008 third quarter. Hot Topic operates 680 Hot Topic boutiques and 156 Torrid stores. By the end of its 2008 fiscal quarter, it operated 683 Hot Topic stores and 158 Torrid stores.
Hot Topic Chief Executive Betsy McLaughlin expects her chain’s sales to increase after Nov. 20, the release date for teen vampire film “New Moon.” Hot Topic was the go-to place for T-shirts, posters and bags inspired by “Twilight,” the first movie in the series. When it was released in 2008, “Twilight” merchandise sales helped put the beleaguered chain’s books in the black.
For its fourth quarter, Hot Topic forecast a high single-digit decline in comparable-store sales.
Earlier this month, Hot Topic named Amy Kocourek as chief merchandising officer for its Hot Topic division. Kocourek recently worked as general merchandising manager for women’s apparel for American Eagle Outfitters and has held buying positions for Gap Inc.’s Old Navy division.—Andrew Asch
