Hot Topic Inc. said Wednesday its net income rose 19 percent in its fourth quarter on higher sales of its trendy teen apparel, exceeding Wall Street estimates.
After the markets closed, the City of Industry retailer reported net income of $14.1 million (32 cents per share) in the quarter ended Jan. 31, compared with $11.9 million (27 cents) a year ago. Revenue rose 8 percent to $238 million, as same-store sales rose 5.2 percent.
Analysts surveyed by Thomson Reuters on average expected net income of 31 cents per share on revenue of nearly $236 million.
For the full year, profit rose 23 percent to $19.7 million (45 cents), with a 5 percent increase in revenue to more than $761 million.
The company said it expects better results in the first quarter compared to a year ago, and provided per share guidance ranging from a loss of a penny per share to a gain of a penny per share. Analysts expect the retailer will break even.
Shares rose 4 percent in after-hours trading. Before the announcement, shares closed down 20 cents, or 2 percent, to $8.85 on the Nasdaq.
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