The company increased its second quarter guidance to a loss per share in the range of $0.02 to $0.03 per share. Previous guidance for the company was a loss per share in the range of $0.04 to $0.06 per share based upon a comp sales increase in the low to mid-single-digit percentage range.
Lisa Harper, Chairman of the Board and CEO, said, “We are pleased with our progress in the fashion apparel category and we continue to make solid gains in licensing at Hot Topic. At Torrid we are delighted to report that our new Torrid locations in strip centers are exceeding our internal expectations and that our strategy of moving to a vertical sourcing model has positioned us for strong margin gains. In addition we feel strongly that we ended the second quarter with the right merchandise assortment and that our inventory levels are on plan as we enter the back half of 2012.”
The company issued third quarter earnings guidance (13 weeks ending October 27, 2012) in the range of $0.08 to $0.10 per share, as compared to earnings per share of $0.07 last year. This guidance is based upon a comp sales increase in the low-single-digit percentage range. The company also issued fourth quarter earnings guidance (14 weeks ending February 2, 2013) in the range of $0.23 to $0.27 per share, as compared to earnings per share of $0.21 last year. This guidance is based upon a comp sales increase in the low to mid-single-digit percentage range.
For more detailed information relating to second quarter sales, please call 626-709-1209 to listen to a recorded commentary.A conference call to discuss second quarter results, business trends, guidance and other matters is scheduled for August 15, 2012 at 4:30 PM (ET). The conference call number is 800-510-9836, pass code “Hot Topic”, and will be accessible to all interested parties. It will also be webcast on the company’s Investor Relations website located at http://investorrelations.hottopic.com. A replay of the conference call will be available at 888-286-8010, pass code 73585505, for approximately two weeks. In addition, a webcast replay of the conference call will be available on the company’s Investor Relations website for approximately two weeks. Hot Topic, Inc. is a mall and web based specialty retailer operating the Hot Topic and Torrid concepts. Hot Topic offers music/pop culture-licensed and music/pop culture-influenced apparel, accessories, music and gift items for young men and women. Torrid offers apparel, lingerie, shoes and accessories designed for various lifestyles for young plus-size women. As of July 28, 2012, the company operated 620 Hot Topic stores in all 50 states, Puerto Rico and Canada, 171 Torrid stores, and Internet stores hottopic.com and torrid.com.