(Reuters) - Teen-clothing retailer Hot Topic Inc posted a 7.1 percent rise in March same-store sales, riding on strong sales of accessories and DVDs of the popular teen vampire movie “Twilight.”
Analysts were expecting a same-store rise of 5.4 percent.
Hot Topic has effectively cashed in on Twilight’s success, seeing brisk sales of its Twilight T-shirts, sweatshirts and jewelry, and March also saw the DVD release of the film.
Sales of Twilight DVDs — for which the company’s website also took early orders prior to the release — were responsible for roughly half of the same-store sales rise during the month, the company said in a pre-recorded call.
Hot Topic, which operates 679 Hot Topic stores and 158 Torrid stores across the United States, also forecast first-quarter earnings of 1 cent to 2 cents a share, against its prior outlook range of a loss of 1 cent a share to a profit of 1 cent a share.
Analysts on average were expecting the company to break even.
The company, which sells rock n’ roll-inspired apparel and accessories as well as music, posted a 25 percent increase in accessory sales making up for declines in apparel.
The mall and web-based retailer said same-store sales at its namesake outlets rose 10.6 percent, offsetting a 5.9 percent fall in Torrid stores.
Shares were up as much as 3 percent in trading after the bell. They closed at $11.76 Wednesday on Nasdaq.
Reporting by Nivedita Bhattacharjee in Bangalore; Editing by Vinu Pilakkott