Hot Topic (HOTT) Lower Q2 Guidance; July Comps Fall 7.2%
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Hot Topic, Inc. (Nasdaq: HOTT) reported that July comp store sales fell 7.2%. The company also announced that as a result of lower than expected sales, the company currently estimates that the second quarter net loss will be in the range of $0.02 to $0.03 per diluted share. The consensus is $0.00.
CEO, Betsy McLaughlin, said, "During the first two weeks of July, we experienced comp store sales roughly flat to a year ago. During the last half of the month, we experienced a significant drop in traffic and comparable sales. Approximately one-third of the total company comp miss can be attributed to Florida and a very disappointing 'sales tax free event' relative to a year ago. Approximately one-third was a result of our plan to be less promotional this year than we were last year. The remaining third was a result of less traffic. We believe our back-to-school assortment, especially our men's and women's fashion statements, are on trend and look better than they have looked in years. However, we also believe it will take time and traffic for our customers to respond accordingly. In the meantime, our inventory is in line and our expense control initiatives are in progress."
CEO, Betsy McLaughlin, said, "During the first two weeks of July, we experienced comp store sales roughly flat to a year ago. During the last half of the month, we experienced a significant drop in traffic and comparable sales. Approximately one-third of the total company comp miss can be attributed to Florida and a very disappointing 'sales tax free event' relative to a year ago. Approximately one-third was a result of our plan to be less promotional this year than we were last year. The remaining third was a result of less traffic. We believe our back-to-school assortment, especially our men's and women's fashion statements, are on trend and look better than they have looked in years. However, we also believe it will take time and traffic for our customers to respond accordingly. In the meantime, our inventory is in line and our expense control initiatives are in progress."
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