Young fashion retailer Hot Topic has forecasted a loss for its second-quarter following lower-than-expected sales.
Second-quarter same-store sales fell 5.5% compared with a decrease of 3.5% last year.

It therefore expects to record a quarterly loss of $0.02 to$0.03 per diluted share.

CEO Betsy McLaughlin said: "Approximately one-third of the total company comp miss can be attributed to Florida and a very disappointing 'sales tax free event' relative to a year ago.

"Approximately one-third was a result of our plan to be less promotional this year than we were last year. The remaining third was a result of less traffic."

Adding a note of optimism, McLaughlin said: "We believe our back-to-school assortment, especially our men's and women's fashion statements, are on trend and look better than they have looked in years.

"However, we also believe it will take time and traffic for our customers to respond accordingly. In the meantime, our inventory is in line and our expense control initiatives are in progress.''