Hot Topic Inc. has been heating up with investors.

The City of Industry apparel retailer has long struggled as its goth fashions fell out of favor with teens. But a year ago, the board brought in an apparel industry veteran as its chief executive and de-emphasized its signature fashions.

Investors have been impressed with the early stages of the turnaround. Last week, shares closed up 15 percent to $10.15 for the week ended March 14, making it one of the biggest gainers on the LABJ Stock Index. (See page 46.)

“Investors see Hot Topic as more in touch with the customer and getting back on track,” said Howard Davidowitz, chairman of New York retail analysis firm Davidowitz & Associates Inc.

Chief Executive Lisa Harper, who was named to the post last March, decided to highlight more mainstream clothing, such as Lady Gaga T-shirts and brightly colored apparel. The company also has stepped up sales of its denim lines and has seen double-digit sales increases of its fashion apparel lines, which do not feature music or pop licensed motifs.

At its Torrid stores, which sell plus-size apparel, the company has started to design and contract manufacture its own product lines instead of just selling apparel from other garment makers. Additional moves include selling off its online music site, Shockhound, and reducing the CDs on sale at its stores.

But the company still has a way to go.

Total sales at its Hot Topic and Torrid stores are still down roughly 1 percent year over year, and the company reported a modest 1.3 percent gain in same-store sales, trailing many competitors.

One problem for the company has been when it has miscalculated demand for apparel and related merchandise in advance of film releases, such as the “Twilight” series and the new “Hunger Games.” In the past, if a movie proved less popular than expected, the company was stuck with excess inventory.

In an earnings conference call with analysts earlier this month, Harper said the company plans smaller advance buys and then would order more as demand dictates.

This approach “should have a positive impact on gross margin,” said Elizabeth Pierce, a retail analyst with Roth Capital Partners in Newport Beach, in a recent research note.

But there is a risk: If Hot Topic cannot secure enough supplies related to a smash hit, disappointed fans could turn to other retailers. So the move is seen as a vote of confidence in the local manufacturing base.

“Hot Topic is really counting on the fast turnaround of our local fashion manufacturers,” said Ilse Metchek, president of the California Fashion Association.