Hot Topic Inc. (HOTT) announced worse-than-expected total December sales on Wednesday, forcing the company to lower its forecast for third-quarter earnings.
The teen retailer saw December total sales slide 9.8% compared to a year ago, to $119.0 million, while same-store sales during the month fell 10.9%, compared to an increase of 4.3% a year ago.
Analysts were expecting same-store sales to fall 8.6%, according to a poll by Thomson Reuters.
The company was forced to revise its earnings per share view to the downside. Hot Topic now expects earnings of 18 to 20 cents per share, compared to an earlier forecast of 23 to 26 cents a share as a result of lower than expected same-store sales, forecast to range between 10% and 12%.
Shares of Hot Topic fell 46 cents a share or 7.72% in after-hours trading, after gaining 5 cents a share or 0.85% to close the day Wednesday at $5.96 a share.
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