US: Hot Topic Q4 profit surges on higher sales
- Q4 profit jumped 34.4% to $12.1m
- Sales rose 11% to $233m
- Company swung to full-year profit of $19.5m
Teen apparel retailer Hot Topic has reported a 34.4% increase in its fourth-quarter profit, driven by higher sales.
The company, which is set to be acquired by private equity firm Sycamore Partners for around US$600m, said net income reached US$12.1m for the three months to 2 February, compared to $9m last year.
Total sales rose 11% to $233m from $209.9m the same period the year before, while comparable sales were up 2.6%.
Over the full year, the retailer swung to a profit of $19.5m, compared to a loss of $1.8m the prior year, which included a $16.6m charge linked to its strategic business changes and cost reduction plan.
Earlier this week, the company named its new chief operating officer and chief financial officer after agreeing to the takeover by Sycamore Partners.
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