Hot Topic reports Q1 profit loss of $0.02 per share
24 May '07
2 min read
Hot Topic Inc announced that the company incurred a net loss in the fiscal first quarter of 2007 (13 weeks ended May 5, 2007) of $0.8 million, or $0.02 per share, compared with a net loss of $1.4 million, or $0.03 per share, in the fiscal first quarter of 2006 (13 weeks ended April 29, 2006).
As previously reported, total sales for the 13 weeks ended May 5, 2007 increased 2% to $157.3 million compared to $154.0 million for the 13 week period ended April 29, 2006.
Comparable store sales declined 2.3% for the first quarter of 2007. Due to a 53rd week in fiscal 2006, first quarter comparable store sales are compared to the corresponding 13 week period ended May 6, 2006.
At the end of first quarter fiscal 2007, the company operated 695 Hot Topic stores and 131 Torrid stores compared to 671 Hot Topic stores and 123 Torrid stores at the end of first quarter fiscal 2006.
During first quarter fiscal 2007, the company opened a total of two Hot Topic stores and closed one Hot Topic store. The company also remodeled or relocated 17 Hot Topic stores during the quarter.
The company issued second quarter (13 weeks ending August 4, 2007) guidance of a loss in the range of $0.02 to $0.04 per share based upon a comparable store sales decline of mid-single digits.
Included in the guidance is a charge of $0.02 to $0.03 per share for Hot Topic stores scheduled to be remodeled or relocated in fiscal 2007 prior to their natural lease expiration.
A conference call to discuss first quarter, business trends, guidance and other matters is scheduled at 4:30 PM (ET). "Hot Topic", and the call will be accessible to all interested parties. It will also be webcast.
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