Net income at Hot Topic Inc rose 10 per cent to $3.68 million in the first quarter to 4 May 2002, up from $3.34m last year.

The specialty retailer of music-related apparel and accessories said net sales for the period increased 27 per cent to $79.90m from $62.92m. Comparable store sales decreased 0.5 per cent for the quarter over last year it said.

Betsy McLaughlin, president and chief executive officer, said the company was "optimistic" about the second quarter.