Top Pick in Specialty Retail is Truly a Hot Topic According to Adrienne Tennant of Friedman, Billings, Ramsey & Co., Inc.

March 31, 2009

When we recently spoke with Adrienne Tennant of Friedman,Billings, Ramsey for our Specialty Retail Report she identified one company as her top pick;

Mrs. Tennant: I liked Hot Topic (HOTT) throughout the back half of last year and  into this year, and it is still my top pick for 2009, despite its excessive  valuation. You have to have something that kids or people, or whoever the target  market is, would want to pay full price for. For Hot Topic thus far, it’s been a  connection, which was either one they locked into or it was by design, with this  “Twilight” movie phenomenon that came out in November. It is based on a four- book series, and they have not only taken that “Twilight,” target market, but  they have taken other categories of products around that target customer and  they have merchandised this store not only to capture the customer for  “Twilight”, but also to continue to have the customer come into the store for  all these other things. In the recession of 2001, post that recession, we saw  the teen kid going a bit darker, going for something a bit off the beaten path,  and that fits in nicely with the Hot Topic theme. So I do like that one. 

Once again the younger demographic seems to be pushing this sector and Hot Topic is leading the way