Hot Topic Shares RiseThursday, November 15, 2012
Shares of teen retailer Hot Topic Inc. rose nearly 6 percent Thursday after the company reported a spike in net income for the third quarter.
The City of Industry company on Wednesday announced that net income for the quarter ended Oct. 27 was $4.3 million (10 cents a share) compared with $3.1 million (7 cents a share) for the same period a year earlier, beating analysts estimates by 1 cent.
Revenue grew 2 percent to $179 million, missing Wall Street’s estimate of $183 million.
Hot Topic attributed the net income gain to a change in its sourcing model at its Torrid stores, which boosted the profitability of the brand. Demand for fashion apparel and T-shirts improved at Hot Topic stores, which made up for struggles in accessories business.
The board declared a quarterly dividend of 8 cents to be paid next month.
Shares closed up 49 cents, or nearly 6 percent, to $9.05 on the Nasdaq.