Hot Topic Earnings Decline
City of Industry, Calif., Hot Topic posted net income for its fourth quarter ended Jan. 29 of $17.4 million, down from $22.5 million in the same period last fiscal year. Net sales for the quarter increased to $211 million, up from $194 million. For the fiscal year, net income was $39.7 million, down from $47.6 million a year ago.
The company expects to open 110 new stores in 2005. This includes an estimated 65 new Hot Topic stores and an estimated 45 new Torrid stores. The company expects to end the year operating 121 Torrid stores and 657 Hot Topic stores. At the end of the fourth quarter, the company operated 668 stores, including 76 Torrid stores, compared to 554 stores, including 52 Torrid stores, at the end of the fourth quarter of fiscal 2003.