Lower sales drag down Hot Topic

From Times Wire Reports

Teen specialty retailer Hot Topic Inc. said its first-quarter loss widened on a drop in same-store sales.

For the quarter ended May 3, Hot Topic posted a loss of $1.4 million, or 3 cents a share, compared with a loss of $809,000, or 2 cents, a year earlier. Sales rose 1.1% to $159 million.

The recent quarter's results included a penny a share in expenses related to the company's online music initiative.

Analysts polled by Thomson Financial expected a loss of 4 cents a share on $159.3 million in revenue.

Total same-store sales fell 2.8% in the quarter. Same-store sales, or sales at stores open at least a year, is considered a key indicator of retailer performance.

Shares of the City of Industry-based retailer fell 13 cents, or 2.6%, to close at $4.84.

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