Hot Topic Management Discusses Q2 2012 Results - Earnings Call Transcript
All forward-looking statements made on this call speak only as of the time they are made, and Hot Topic undertakes no obligation to update these statements to reflect subsequent events or circumstances.
To more effectively disseminate the information discussed this afternoon, this call is being webcast on the company's Investor Relations website at http://investorrelations.hottopic.com, and a replay will be available on that site. A replay will also be available at (888) 286-8010, passcode 73585505, for approximately 2 weeks.
Now I'll turn the call over to Hot Topic's Chief Financial Officer, Jim McGinty.
James J. McGintyHi, this is Jim, and welcome to the call. While on hold, you've been listening to Smells Like Teen Spirit by Nirvana. My partners on the call today are Lisa Harper, Jerry Cook, George Wehlitz and Mark Mizicko. For competitive reasons, we will not be discussing any specific forward-looking product information during this call. George will begin by reviewing the second quarter results and making a few comments on the balance sheet. Following the Q2 details, Lisa will provide you with the thoughts on the second quarter performance and the outlook going forward. Lastly, we will discuss the guidance. Now I'll turn it over to George. George Wehlitz Thanks, Jim. All comparisons discussed are to the same period from a year ago unless otherwise noted. Overall, the net sales during the quarter increased $6.9 million. The components of this increase are as follows: $4.7 million sales increase, primarily from new and noncomparable Hot Topic and Torrid stores; $3.7 million sales gain from Hot Topic comparable stores increase at 3.9%, $1.6 million sales gain from Torrid comparable sales increase of 4%; and lastly, $3.1 million sales decrease from closed stores. For the second quarter, Hot Topic Division had an average transaction value increase of 13%, but the number of comparable transactions were down 8% from last year. Torrid had a 3% increase in the average dollar sale with a 1% increase in the average number of transactions.
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