Hot Topic Inc, reported results for its third fiscal quarter (13 weeks) ended October 28, 2006.
The company reported net income in the third quarter of $7.1 million, or $0.16 per diluted share, compared to $5.9 million or $0.13 per diluted share for the comparable period last year.
The third quarter 2006 results include approximately $0.02 per share of stock-based compensation. Net sales for the third quarter increased 2 percent to $196.7 million from $192.7 million for the third quarter of fiscal 2005.
As previously reported, comparable store sales decreased 6.8 percent for the quarter compared to a decrease of 6.2 percent during the third quarter of fiscal 2005.
At the end of the quarter, the company operated 693 Hot Topic stores and 129 Torrid stores compared to 648 Hot Topic stores and 114 Torrid stores at the end of the third quarter of fiscal 2005.
During the third quarter of fiscal 2006, the company opened a total of 11 Hot Topic stores and 3 Torrid stores and closed 1 Torrid store. The company also remodeled or relocated 7 Hot Topic stores during the quarter.
The company also announced that it expects to open 35 new stores in fiscal 2007 (year ending February 2, 2008).
This includes opening an estimated 15 new Hot Topic stores and 20 new Torrid stores. In addition, the company plans to remodel approximately 60 to 80 Hot Topic stores.
marketing@alchempro.com
