RCI Hospitality Holdings Inc.'s stock (RICK) fell an additional 5% on Thursday, resulting in a week-to-date loss of 9%. This decline comes after the company, known for operating adult nightclubs and strip clubs, provided an update on its business performance that fell short of analyst estimates.

Disappointing Sales Figures

The Houston-based company, which also manages Bombshells restaurants, reported sales of $74.1 million in its fiscal fourth quarter. While this represents a 5.6% increase compared to the same period last year, it fell short of the $76.6 million consensus estimated by FactSet.

Factors Affecting Performance

CEO Eric Langan acknowledged that the sales increase in the fourth quarter was primarily due to acquisitions. However, he also noted that the company faced challenges caused by vacation travel and the Texas heat during July and August. Langan remains optimistic, stating that the situation began to improve in September.

Declining Same-Store Sales

Notably, same-store sales experienced a significant decline during this period. Overall, same-store sales fell by 10.5%, with nightclubs experiencing a decrease of 9.6%, and restaurants facing a more significant decline of 14.1%.

Upcoming Earnings Report

RCI Hospitality Holdings Inc. plans to release its fourth-quarter earnings report on or around December 14th. Investors and analysts alike will be eager to gain insights into the company's financial performance during this critical period.

Stock Performance

Currently, RCI Hospitality Holdings Inc.'s stock is down by a substantial 44% year-to-date, contrasting with the S&P 500's impressive gain of 13%.

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