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Home > Hot Topic June Same-Store Sales Up 0.4%; Zumiez Jumps 9.8%
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 Hot Topic June Same-Store Sales Up 0.4%; Zumiez Jumps 9.8%

Hot Topic Inc. (HOTT) posted a surprise increase in June same-store sales, while Zumiez Inc.'s (ZUMZ) growth easily exceeded Wall Street's expectations.

Shares of Zumiez jumped 4.5% to $27.50 after-hours Wednesday, while Hot Topic's rose 1.2% to $7.51.

Hot Topic reported same-stores sales climbed 0.4%, compared with a 2.4% drop projected by analysts polled by Thomson Reuters. Last year, the decline was 2.1%.

The mall- and Web-based retailer has reported weaker sales in recent quarters, a trend that prompted the company to unveil a cost-reduction plan in November.

Ahead of the results, Janney Capital Markets said the company's inventory was moving toward music and pop culture and away from much of the goth and punk apparel product that has traditionally been associated with Hot Topic. The investment firm has an eye on the company's upcoming back-to-school gear, while noting Hot Topic has aggressively discounted clearance items.

Zumiez--a specialty retailer of sports-related apparel, footwear and accessories for teens and young adults--reported June same-store sales climbed 9.8%, topping Wall Street's growth forecast of 5.6%, and building on an 11% increase last year. Zumiez has recently posted same-store sales growth that has generally exceeded analysts' expectations and outperformed the broader market.

Overall, retailers are expected to report a 4.9% increase in same-store sales in June, according to analysts, with teen-apparel retailers forecast to post a 3.3% jump. Thomson Reuters said retailers were well positioned as they have managed leaner inventories, while warm weather has driven demand for seasonal items that seem to have sold well in the second quarter.