Hot Topic Inc reported results for its second fiscal quarter (13 weeks) ended July 29, 2006.
The company incurred a net loss in the second quarter of $0.9 million, or $0.02 per diluted share (PDS), compared to net income of $0.9 million or $0.02 per diluted share for the comparable period last year.
The second quarter 2006 results include approximately $0.02 per share of stock option expense. Net sales for the second quarter increased 5 percent to $160.3 million from $152.2 million for the second quarter of fiscal 2005.
As previously reported, comparable store sales decreased 5.5 percent for the quarter compared to a decrease of 3.5 percent during the second quarter of fiscal 2005.
At the end of the quarter, the company operated 682 Hot Topic stores and 127 Torrid stores compared to 628 Hot Topic stores and 100 Torrid stores at the end of the second quarter of fiscal 2005.
During the second quarter of fiscal 2006, the company opened a total of 11 Hot Topic stores and 4 Torrid stores. The company also remodeled or relocated 8 Hot Topic stores during the quarter.
The company estimates that third quarter earnings will be in the range of $0.16 to $0.18 per diluted share based upon a mid-single digit comp store sales decline.
For the fourth quarter, the company estimates earnings in the range of $0.44 to $0.48 per diluted share based upon flat comp sales.
A conference call to discuss second quarter, business trends, guidance and other matters is scheduled for today at 4:30 PM Eastern time. The conference call number is 866-202-4367, pass code "Hot Topic", and will be accessible to all interested parties.
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