Updated from Nov. 29
cut earnings estimates for the fourth quarter late Monday after saying same-store sales fell 8% in November.
Tuesday morning, shares slid $1.44, or 7.6%, to $17.40. The stock was down more than 5% to $18.84 in Monday's regular session.
The City of Industry, Calif.-based company said it now expects earnings per share to range from 37 cents to 43 cents a share, down from previous guidance of between 49 cents to 52 cents a share. Analysts surveyed by Thomson First Call were looking for 48 cents.
"We are clearly disappointed by our November results and their implications for the remainder of the quarter," said Chief Executive Officer Betsy McLaughlin. (For an examination of Hot Topic's predicament,
McLaughlin said women's tops and music-related items were strong sellers in November but accessories fell short. Sales at stores open at least a year declined 8% from the prior month. For the fourth quarter, same-store sales could decline by mid- to high-single digits, she said.
Total sales rose 7% from a year earlier to $48.5 million. In the fiscal third quarter ended Oct. 30, Hot Topic posted an 18% decline in earnings, saying Halloween sales were weaker than expected.