December sales results started to trickle in last night, but the morning light brought a flood. Scanning over the results, it appears this isn't too much at the moment to be cheerful about.
Checking in on some of the companies struggling this morning, we find the shares of Hot Topic down more than 16 percent in early trading. The firm revealed that same-store sales in December dropped 5.1 percent, falling well short of the consensus estimate for a 3.4-percent decline.
Net sales for the quarter declined one percent to $186.5 million on a year-over-year basis.
As a result of the weak sales, the firm slashed its fourth-quarter earnings forecast to a range of 20 cents to 22 cents per share compared to its previous outlook range of 33 cents to 38 cents per share.
The Street is currently expecting a profit of 33 cents per share.
Another trendy retailer deep in the red this morning is Bebe Stores (NASDAQ:BEBE), which is currently down almost nine percent. The company stated that December same-store sales climbed four percent, missing the consensus estimate for an increase of 6.3 percent.
Total retail sales for the five-week period jumped 13.5 percent to $95.6 million.
The company stated that the lower-than-expected sales and higher-than-planned markdowns have forced the firm to cut its second-quarter earnings outlook to a range of 25 cents to 29 cents per share, versus its prior range of 31 cents to 35 cents per share.
The average analyst estimate currently comes in at 33 cents per share.
The shares of Limited Brands (NYSE: LTD) have stumbled more than seven percent lower this morning after it reveled that December same-store sales rose only four percent. Analysts had expected a more impressive increase of 9.3 percent during the month.
Total sales for the five-week period jumped six percent to $2.03 billion.
Looking ahead, the firm stated that it expects a high-single-digit increase in its January same-store sales.
Chico's FAS (NYSE:CHS) is bucking the trend this morning, as the equity has climbed more than two percent in early trading. The company reported that December same-store sales fell two percent, coming in slightly better than the Street estimate for a decline of 2.1 percent
Total sales for the month swelled by 12 percent to $193.2 million from last year's $172.6 million.
Looking ahead, the firm announced that it expects fourth-quarter earnings of 12 to 15 cents per share, compared to the Street estimate of 21 cents per share. The weak outlook is due to the fact that markdown rates are expected to continue to be somewhat higher than in the past.
Overall, the S&P Retail Index is currently hovering close to the break-even mark this morning, as it sits on a slight gain of 0.02 percent. The Morgan Stanley Retail Index is up 0.13 percent.