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Slow May for Apparel Companies

Los Angeles Business Journal Staff

May sales for trendy retailers Hot Topic Inc. and American Apparel Inc. were slower that analysts had predicted as shoppers focused on sales and bargains.

City of Industry-based Hot Topic Inc., which targets the teen market with its mall stores, said same-store sales, which includes locations open more than 12 months, fell 6.4 percent last month compared with the 4.3 percent drop Wall Street expected.

The company, which owns Hot Topic and Torrid stores, said net sales for the month fell 2.9 percent to $46 million. Net sales includes revenues from stores open a year or less.

Los Angeles-based American Apparel, which operates stand-alone stores for its locally manufactured clothing, said same-stores sales dropped 10 percent, compared with the analyst consensus for a 4 percent decline. The company did not release a net sales figure.

In midday Nasdaq trading, Hot Topic shares were down 39 cents, or 5 percent, to $7.15, and American Apparel shares dropped 2 cents, or less than 1 percent, to $3.84.


  February 8 - 14, 2010
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The Port of Long Beach’s use of project labor agreements may maroon nonunion contractors.
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A contingent of Latino officials from L.A. cities overcame culture clash on a recent trip to China.
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