Like “Twilight” before it, merchandise tied to the hit film “Hunger Games,” turned Hot Topic Inc. to a profit in first quarter.
After the markets closed on Wednesday, the City of Industry teen
retailer reported net income of $3.8 million (9 cents a share), compared
with a net loss of $7.7 million (-17 cents) in the same period a year
earlier. Sales rose more than 6 percent to nearly $172 million, with
comparable store sales up 7.5 percent.
Analysts on average had expected net income of 8 cents a share, with about $100,000 more in revenue.
Lions Gate's post-apocalyptic blockbuster "Hunger Games," which
opened in mid-March, was No. 1 in the domestic box office for four
weeks. Hot Topic stores did a brisk business in T-shirts, accessories
and CDs based on the film.
“The quarterly results demonstrate the success of our key strategies
of returning the Hot Topic brand to its edgy, dark and sexy core, as
well as bringing true fashion to the Torrid brand,” said Chief Executive
Lisa Harper in a statement.
During the quarter, the company opened one Hot Topic store and 17
Torrid stores and closed five Hot Topic stores and one Torrid store. The
company also remodeled or relocated 13 Hot Topic stores and one Torrid
store.
At the end of the first quarter of fiscal 2012, the company operated
624 Hot Topic stores and 164 Torrid stores compared to 642 Hot Topic
stores and 151 Torrid stores at the end of first quarter of fiscal 2011.
Shares earlier closed down 1 cent, or less than 1 percent, to $9.88 on the Nasdaq.
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