Dow Jones Newswires
Hot Topic Inc.'s April same-store sales grew more than analysts expected and in the process ended a two-year streak of declines, while Zumiez Inc.'s growth topped analysts' expectations.
Still, shares of Hot Topic fell 1.3% to $6.44 in after-hours trading, while Zumiez's stock grew 1.5% to $28.98.
Hot Topic reported same-store sales increased 11%, compared with a 3.4% jump projected by analysts polled by Thomson Reuters and rebounding from a 13% decline last year. The company last reported a monthly increase in April 2009.
Hot Topic also raised its full-year outlook, seeing breakeven results to a 2-cent loss, compared with the March forecast of a loss of a penny to 4 cents a share.
The mall- and Web-based retailer, which offers pop-culture-related clothing and accessories, has struggled to win shoppers after its merchandise geared to the "Twilight" vampire movie sequels failed to buoy results as much as products tied to the original film did. Poor results led the company to announce a cost-reduction plan in November, and two top executives have resigned, including longtime chief executive Betsy McLaughlin.
Zumiez--a specialty retailer of sports-related apparel, footwear and accessories for teens and young adults--reported April same-store sales jumped 18%, topping Wall Street's growth forecast of 14%, and building on a 2.1% increase last year.
Overall, retailers are expected to report an 8.2% jump in same-store sales in April, according to analysts, with teen apparel retailers forecast to report a 9% jump. Retailers delivered solid results in March in the face of poor weather and higher gasoline prices, and results this month should benefit from a late Easter.
