Wednesday November 5 4:14 PM EST
Company Press Release
Hot Topic Inc. Announces 59 Percent Third-Quarter Sales Increase
POMONA, Calif.--(BUSINESS WIRE)--Nov. 5, 1997--Hot Topic Inc. (Nasdaq/NM:HOTT) Wednesday reported net sales for its third quarter of fiscal 1997 (ended Nov. 1, 1997)
increased 59 percent to $18,757,000 from net sales of $11,788,000 for the comparable quarter of fiscal 1996.
Same-store sales for the quarter increased 0.6 percent. The same-store-sales increase was 14.2 percent in the third quarter of fiscal 1996.
Orv Madden, president and chief executive officer, said: ''Back-to-school and early fall sales met expectations, with more strength in the latter part of the quarter. As expected,
comp-store sales were modest at 0.6 percent, with the difficult comparison to the strong 14.2 percent comp increase in last year's third quarter.
''Continuing the trend of the last four quarters, sales of our music-licensed and music-influenced young men's and women's apparel were strong, as were sales in our new stores.
''Ten new stores were opened during the third quarter, including our first stores in Kansas and Texas. The teen customer and parent reaction in the new markets was enthusiastic.
Aggregate net sales for the 36 new stores opened in fiscal 1997 have outperformed our initial sales estimates,'' added Madden.
Net sales for the 39 weeks ended Nov. 1, 1997 were $43,627,000, an increase of 60 percent over net sales of $27,189,000 for the first 39 weeks of fiscal 1996. Same-store sales increased
2 percent for the 39-week period ended Nov. 1, 1997. At the end of the third quarter, the company operated 104 stores, compared with 66 at the end of the corresponding quarter last year.
The company expects to release third-quarter earnings and other financial information the week of Nov. 17, 1997.
Hot Topic is a mall-based specialty retailer of music- licensed and music-influenced apparel, accessories and gift items for young men and women principally between the ages of 12 and
22. The company currently operates 104 stores in 32 states throughout the Western, Midwestern, Eastern and Southern regions of the United States.
Except for the historical information contained herein, this news release contains forward-looking statements that involve risks and uncertainties, including management of growth,
fluctuations in sales and comp-store sales results, music and fashion trends, competition from other retailers and uncertainties generally associated with specialty retailing and the
implementation and management of the company's growth strategy, as well as other risks detailed from time to time in the company's Securities and Exchange Commission reports,
including its annual report on Form 10-K for the year ended Feb. 1, 1997. The historical results achieved are not necessarily indicative of future prospects of the company. |
