Ahead of the Bell: "New Moon" may help Hot Topic

Analysts look to "New Moon" merchandise in Oct. to help pull Hot Topic out of sales slump

• On Thursday August 20, 2009, 8:51 am EDT

NEW YORK (AP) -- The "Twilight" sequel, "New Moon," should boost Hot Topic Inc.'s sales this fall, analysts said, but may not be as powerful a sales driver as the first movie.

The apparel based on the "Twilight" hit book and movie series about teenage vampires had helped Hot Topic post big gains in sales late last year and earlier this year while other retailers struggled.

"New Moon" merchandise will be in stores in early October, said William Blair analyst Sharon Zackfia in a note to investors. However, August sales trends are "lackluster," she wrote, and Hot Topic is facing increasingly difficult sales comparisons from last year, especially during October, when it will release "New Moon" apparel and accessories.

B. Riley analyst Jeffrey Van Sinderen said late Wednesday that Hot Topic is improving its women's clothing offerings and has kept inventory under control. These efforts should help it maximize the gains from the fresh traffic the "New Moon" merchandise will bring to stores, he said.