Hot Topic Inc. reported a smaller fiscal second-quarter loss on higher same-store sales and better margins. The company also announced a repurchase of shares.
After the Wednesday markets closed, the City of Industry teen retailer reported a net loss of $6.2 million (-14 cents per share) for the quarter ended July 30, compared with a loss of $6.3 million (-14 cents) in the same period a year earlier.
The results included a charge of 6 cents per share related to company’s reorganization and cost reduction efforts, which included closing seven Hot Topic stores and six Torrid locations. The adjusted results met Wall Street expectations for a per-share loss of 8 cents.
Sales rose 0.7 percent to nearly $151 million, with comparable same-store sales up 2.6 percent. Analysts on average expected sales of less than $148 million.
The company expects fiscal 2011 earnings per share in the range of 17 to 23 cents, compared with the Wall Street consensus 17 cents.
Hot Topic, which has a market capitalization of about $324 million and 45 million shares outstanding, said its board authorized the repurchase of up to $25 million shares.
Shares on Thursday closed up 44 cents, or 6 percent to $7.39 on the Nasdaq.
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