Hot Topic Inc. swung to a loss in its fiscal fourth quarter, largely due to expenses related a cost-reduction plan.
The City of Industry teen retailer also announced Monday that it had hired a consulting and financial advisory firm to review its business and operations. Its board plans to review recommendations at a special meeting next week.
The company reported a net loss of $600,000 (-1 cent a share) for the quarter ended Jan. 29, compared with net income of $8 million (18 cents) a year earlier. Net sales fell 0.8 percent to $212 million, with same-store sales down 2 percent.
Hot Topic announced in November that to cut costs it planned to close 40 to 50 stores, about 5 percent of its base, by the end of its first quarter. So far, 23 Hot Topic stores and three Torrid stores have closed, although one Torrid store was opened.
Adjusted for $9.8 million in closings and other cost-reduction expenses, the company had net income equal to 12 cents a share. Analysts surveyed by Thomson Reuters on average had expected adjusted per-share profit of 13 cents.
Shares were up 1 cent, or less than 1 percent, to $5.42 in midday trading Tuesday on the Nasdaq.
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