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CITY OF INDUSTRY — Hot Topic Inc., a mall-based retailer of clothes and accessories for teenagers, posted a net loss for its fiscal first quarter as revenue declined.
For the three months ended May 1, the company posted a loss, late Wednesday, of $1.8 million, or 4 cents per share, down from a profit of $1.2 million, or 3 cents per share, in the same period a year earlier.
Revenue fell 7 percent to $162.6 million from $175.1 million.
Analysts, on average, expected a loss of 4 cents per share on revenue of $163.3 million, according to a survey by Thomson Reuters.
The sales decline was at the company's flagship stores. Sales at Torrid, which sells young women's clothes in larger sizes, increased 7 percent to $42.9 million.
For the second quarter, Hot Topic expects to post a net loss between 7 cents and 10 cents per share. Analysts expect a loss of 7 cents per share.
Shares of Hot Topic dropped 56 cents, or 9 percent, to $5.97 in premarket trading Thursday.
