Specialty retailer Hot Topic net sales rise, comparables drop
16 Mar '06
2 min read
Mall-based specialty retailer Hot Topic Inc reported net income for the quarter ended January 28, 2006 of $10.6 million or $0.23 per diluted share, compared to $17.4 million or $0.38 per diluted share for the same period last fiscal year.
As previously reported, net sales for the fourth quarter increased 9 percent to $230.4 million from $211.3 million for the fourth quarter of fiscal 2004.
Comparable store sales decreased 3.8 percent for the quarter compared to a decrease of 6.0 percent in the fourth quarter of fiscal 2004.
Fourth quarter results include an asset impairment charge of $1.6 million, or $0.02 per diluted share, in selling, general and administrative expenses in accordance with SFAS No 144, "Accounting for the Impairment or Disposal of Long-Lived Assets".
In addition, the company recognized gift card breakage income of $3.1 million, or $0.04 per diluted share, reported in other income.
Gift card breakage is income recognized due to the non-redemption of a portion of gift cards sold by the company for which a liability was recorded in prior periods.
At the end of the quarter, the company operated 663 Hot Topic stores and 120 Torrid stores compared to 592 Hot Topic stores and 76 Torrid stores at the end of the fourth quarter of fiscal 2004.
During fiscal 2005, the company opened a total of 71 Hot Topic stores and 46 Torrid stores.
The company closed two Torrid stores during fiscal 2005.
marketing@alchempro.com
