Hot Topic Inc announced that net earnings for the fiscal fourth quarter of 2006 (14 weeks ended February 3, 2007) were $8.9 million, or $0.20 per diluted share, compared with $10.6 million, or $0.23 per diluted share, for the fiscal fourth quarter of 2005 (13 weeks ended January 28, 2006).
As previously reported, total sales for the 14 weeks ended February 3, 2007 increased 4% to $240.5 million compared to $230.4 million for the 13 week period ended January 28, 2006. Comparable store sales decreased 5.3% for the fourth quarter of 2006. Due to the 53rd week in fiscal 2006, fourth quarter comparable store sales are compared to the corresponding 14 week period ended February 4, 2006.
Results for the fourth quarter of 2006 include an asset impairment charge of $2.8 million, or $0.04 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". The fourth quarter 2006 results also include approximately $0.01 per diluted share of stock-based compensation.
Fourth quarter of 2005 results included an asset impairment charge of $1.7 million, or $0.02 per diluted share, in selling, general and administrative expenses. The fourth quarter of 2005 results also included other income of $3.1 million, or $0.04 per diluted share, associated with gift card breakage.
At the end of the fourth quarter of fiscal 2006, the company operated 694 Hot Topic stores and 131 Torrid stores compared to 663 Hot Topic stores and 120 Torrid stores at the end of the fourth quarter of fiscal 2005. During the fourth quarter of fiscal 2006, the company opened a total of 2 Hot Topic stores and 2 Torrid stores and closed 1 Hot Topic store. The company also remodeled or relocated 2 Hot Topic stores during the quarter.
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