Hot Topic Reports 1.3 Percent Increase in 4th Quarter
Coming off a good holiday season, Hot Topic Inc. reported a 1.3 percent increase in same-store sales for the fourth quarter of its 2011 fiscal year, compared with a 2.1 percent decline during the same period a year earlier.
Hot Topic raised its guidance for its fourth-quarter earnings to a range of 19 to 20 cents, compared with the previous guidance of 17 to 19 cents.
The pop-culture retailer’s numbers might prove to be a rally. It reported a 1.6 percent decline in same-store sales for its 2011 third quarter, a period that includes Halloween, one of Hot Topic’s most important times for business. However, on Jan. 4, Hot Topic reported its sales for the 2011 holiday, which had a same-store-sales increase of
1.2 percent compared with the holiday of 2010.
Wall Street analyst Liz Pierce of Roth Capital Partners said in a report that holiday sales were proof of a rally for Hot Topic. “Although HOTT is still in the early stages of a merchandise turnaround, based on recent channel checks and recent results, we have become increasingly optimistic about the company’s go-forward merchandise strategy.”—Andrew Asch
