Hot Topic, Inc. Reports 3rd Quarter Earnings Increase
Hot Topic, Inc. (Nasdaq Global Select Market:HOTT), reported results for its third quarter of fiscal 2012 (13 weeks) ended October 27, 2012.
The company reported net income in the third fiscal quarter of $4.3 million, or $0.10 per share, compared to net income of $3.1 million, or $0.07 per share, for the comparable period last year. Total sales for the third quarter of fiscal 2012 increased 2.0% to $179.4 million compared to $175.8 million for the third quarter last year. Total company comparable sales increased 0.2% for the third quarter of fiscal 2012. A summary of the sales results by division was included in the third quarter sales release.
“We validated the new merchandising and sourcing strategies at Torrid this quarter, and continue to be enthusiastic about Torrid as a growth vehicle for the company,” said Lisa Harper, Chairman and CEO of Hot Topic, Inc. “Customers reacted positively to the new fashion-forward assortment and brand marketing introduced in late July, and our new vertical sourcing model significantly improved our gross margin rate. At Hot Topic, we continue to see improvement in the fashion apparel and tee businesses, which offset the challenges in the accessory categories.”
The company also announced that on November 13, 2012, its Board of Directors declared a regular quarterly dividend of $0.08 per share payable on December 28, 2012 to shareholders of record at the close of business on December 14, 2012. The company accelerated its fourth quarter dividend, typically paid in January, to allow shareholders to benefit from the lower dividend tax rate that is set to expire December 31, 2012.At the end of the third quarter of fiscal 2012, the company operated 620 Hot Topic stores and 186 Torrid stores compared to 634 Hot Topic stores and 146 Torrid stores at the end of third quarter of fiscal 2011. During the third quarter of fiscal 2012, the company opened 18 Torrid stores and closed three Torrid stores. The company also remodeled or relocated 13 Hot Topic stores and one Torrid store during the quarter.
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