Hot Topic Inc., part of our Micro Cap Index here at World Market Media, rose 10% after the teen retailer said in a conference presentation, this morning, all of the company’s core businesses are seeing improvement at its Hot Topic chain. Furthermore, quarter-to-date comparable sales at its Torrid plus-sized chain are up 8%. Executives made the comments in a presentation at Telsey Advisory Group conference. Recently the company's results have been hurt by comparisons against sales of Twilight and New Moon movie merchandise.
This is a good sign for HOTT who has been struggling since they lost licensing rights for the highly profitable Twilight Saga. In their latest quarterly conference call the company commented that the license from the first Twilight movie artificially boosted sales, so when they missed out on the license for the 2nd movie comparable sales seemed much worse than they really were. It seems their more balanced approach to gaining licenses paired with improving retail sales has this strong looking strong moving forward.
Shares of HOTT are trading at $9.30 up 82 cents or 9.6% on heavy volume of 5.2M
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