CHICAGO (AP) — Shares of Hot Topic Inc. climbed Tuesday after an analyst boosted her price target for the teen clothing chain, saying the retailer's getting a sales boost from a solid combination of new products and in-store events.
Boenning & Scattergood analyst Holly Guthrie told investors in a research note that she was raising her price target on the City of Industry, Calif.-retailer to $13 from $10.50.
Unlike even many of its direct competitors, Hot Topic is faring better than most retailers in the recession, thanks to its devoted shopper base, affordable prices, assortment of popular fashion and licensed products tied to the "Twilight" books and movie, among other items.
In February, same-store sales — an important retail industry metric of sales in stores open at least a year — climbed nearly 11 percent. The company operates Hot Topic stores and Torrid, which sells plus-sized women's clothing.
Both brands' online sales climbed as well.
Guthrie told investors that sales of licensed products related to the "Watchmen" movie should help March sales. She predicts other sales boosts throughout the year related to the release of a "Twilight" sequel and the latest "Harry Potter" film.
Hot Topic shares climbed 51 cents, or 4.7 percent, to $11.45 in late-afternoon trading Tuesday.
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Tuesday, March 31, 2009
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