Apparel retailer Hot Topic Inc. blamed diminishing sales and the cost of closing stores for weak fourth quarter earnings.
Hot Topic reported net income of $8.9 million (20 cents per share), down 16 percent from $10.6 million (23 cents) for the same period a year earlier. The fourth quarter numbers missed analysts’ expectations of 21 cents per share, according to a poll conducted by Thomson Financial.
The results included a charge of 4 cents per share related to the closure of underperforming stores, the company said.
The City of Industry-based retailer said overall sales rose 4 percent to $240 million, beating analysts’ predictions of $239 million. However, same-store sales fell 5.3 percent for the quarter.
Shares in Hot Topic closed up 3 cents to $10.89 and gained another 7 cents in after-hours trading Wednesday.