Hot Topic, Inc, a mall-based specialty retailer of music-licensed and music-influenced apparel, accessories and gift items for teens, today reported financial results for the second quarter of fiscal 2001.

All references to shares and per share amounts reflect a 2-for-1 stock split effected on December 28, 2000.

The company's net income for the quarter was $4,279,000 or $0.19 per diluted share compared to net income of $3,121,000 or $0.15 per diluted share for the second quarter of fiscal 2000. The company previously reported its net sales for the second quarter increased 39 per cent to $71,944,000 from $51,718,000 for the second quarter of fiscal 2000 and comparable-store sales increased 2.4 per cent.

For the first 26 weeks of fiscal 2001, net income was $7,626,000 or $0.34 per diluted share, compared to $5,564,000 or $0.26 per diluted share for the comparable period last year. The company previously reported its net sales for the 26 weeks ended August 4, 2001 were $134,871,000, an increase of 40 per cent over net sales of $96,556,000 for the first 26 weeks of fiscal 2000, and comparable-store sales increased five per cent.

Betsy McLaughlin, president and CEO, said: "In light of the difficult retail climate, we are pleased with our second quarter sales and earnings. We achieved positive comp sales during each of the three months, resulting in a 2.4 per cent comp for the quarter. These results are on top of two years of tough comparisons, a 21.8 per cent comp in 2000 and a 16.9 per cent comp in 1999.

"Net sales exceeded our plan primarily because of the strong performance of our newer, non-comp stores. Throughout the quarter, our promotional activity was very low, in line with last year. The positive comp, new store results, strong margins and effective expense controls all contributed to the EPS increase to $0.19 from $0.15 in last year's second quarter. 

"We continue to see favourable reactions to our back to school merchandise assortment in August. Inventories are well positioned to support the balance of the back to school period."

McLaughlin, added: "We continue to be pleased with the results of our six test Torrid stores. Based on customer feedback, we have made adjustments to the assortment which are reflected in the back to school offering. We will continue to adjust the merchandise and operations as the concept evolves." 

To view related research reports, please follow the links below:-

Teen Trends - 2001 Report

Marketing to Tweens