CITY of INDUSTRY, Calif., April 5, 2006 (PRIMEZONE) -- Hot Topic, Inc. (Nasdaq:HOTT) today announced the following sales results for its fiscal month of March (five weeks ended April 1, 2006):
Comparable Store
Net Sales Sales % Change
-------------------- --------------------
% Change
$ to Last This Last
Millions Year Year Year
-------- -------- ------ ------
March $59.3 -1% -12.7% 5.3%
Quarter-
to-date $107.7 2% -10.9% 3.1%
The company announced that as a result of the lower than expected sales performance quarter-to-date, it now estimates a net loss for the first quarter of 2006 (ending April 29, 2006) in the range of approximately $0.01 to $0.04 per diluted share. The revised guidance reflects a comparable store sales decline in the mid to high single digit range for the quarter.
For more detailed information on March sales results, please call 626-709-1209 to listen to a recorded commentary.
Hot Topic, Inc. is a national mall-based specialty retailer. Hot Topic offers apparel, accessories and gifts to young men and women principally between the ages of 12 and 22. Torrid, the company's second concept, provides plus-size fashion-forward apparel and accessories that target young women principally between the ages of 15 and 29. As of April 1, 2006 the company operated 667 Hot Topic stores in all 50 states and Puerto Rico, 120 Torrid stores, and Internet stores www.hottopic.com and www.torrid.com.
In addition to historical information, this news release and the aforementioned prerecorded commentary contain forward-looking statements, which include statements relating to financial results, guidance, projections and other financial performance, managing growth, and litigation matters and contingent liabilities. These statements involve risks and uncertainties, including risks and uncertainties associated with meeting expected financial results, management of growth, relationships with mall developers and operators, the risk that available cash or mall space will not be adequate for planned expansion, fluctuations in sales and comparable store sales results, risks and uncertainties with respect to new store openings including risks associated with the company's new store concepts and Internet stores, music and fashion trends, competition from other retailers, uncertainties generally associated with specialty retailing, the effect of economic conditions, the effect of severe weather or natural disasters, political and/or social changes or events that could negatively impact shopping patterns and/or mall traffic, litigation proceedings and contingent liabilities, as well as other risks detailed in the company's SEC reports including its Quarterly Reports on Form 10-Q and its Annual Report on Form 10-K for the year ended January 28, 2006. Historical results achieved are not necessarily indicative of the future prospects of the company, and actual results or circumstances could differ materially from the forward-looking statements.