Hot Topic Meets Targets
Beleaguered mall-based retailer Hot Topic (HOTT) reported a 19% rise in third-quarter income, matching Wall Street's estimates.
The City of Industry, Calif.-based company, which sells music-based apparel and accessories for young people, posted earnings of $7.1 million, or 16 cents a share, up from $5.9 million, or 13 cents a share, a year ago. Analysts polled by Thomson First Call anticipated earnings of 16 cents a share.
Sales increased 2% to $196.7 million. Same-store sales fell 6.8% on top of a 6.2% drop a year ago.
At the end of the quarter, the company operated 693 Hot Topic stores and 129 Torrid stores, compared with 648 Hot Topic stores and 114 Torrid stores a year ago.The company expects to open 35 new stores in fiscal 2007, consisting of 15 new Hot Topic stores and 20 new Torrid stores. The company also plans to remodel about 60 to 80 Hot Topic stores. Separately, the company said Chris Daniel has been promoted to president of the Torrid chain, which sells plus-sized clothes. Daniel has been the chief merchandising officer of Torrid since August 2006. He joined the company as vice president, general merchandise manager of Torrid in October 2004. Hot Topic shares recently were up 93 cents, or 8.4%, to $12.04.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV