Hot Topic’s Net Income Drops 52%
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Hot Topic Inc. said Wednesday that net income fell 52% in the third quarter as same-store sales declined.
Profit at the mall-based teen retailer fell to $5.9 million, or 13 cents a share, from $12.4 million, or 26 cents, last year. Sales increased 7% to $192.7 million.
Sales at stores open at least a year, a key measure of retail health, fell 6.2%, a steeper drop than the 4.2% decrease last year.
The City of Industry company said third-quarter results included a charge of 2 cents a share related to two California wage lawsuits. Excluding items, the per-share result met the low end of the company’s forecast of 15 cents to 18 cents. Analysts polled by Thomson Financial on average expected the company to earn 15 cents a share on $193 million in revenue.
Shares of Hot Topic fell 23 cents to $13.58.
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