Wednesday after the bell, specialty retailer Hot Topic, Inc. (HOTT) reported a decline in third-quarter profit, compared to the year-ago on lower sales. The company also provided guidance for the fourth quarter, below the consensus of Wall Street analysts.
California-based Hot Topic's profit declined to $5.8 million from $7.4 million in the prior-year period. Earnings per share decreased to $0.13 from $0.17. On an average, 13 analysts polled by Thomson Reuters expected earnings of $0.13 per share for the quarter. Analysts' estimates typically exclude one-time items.
The quarter's results and prior-year quarter's results include approximately $0.02 and $0.01 per share of expense, respectively, related to the company's online music site ShockHound.
Company's total sales decreased 3.9% to $189.6 million from $197.3 million in the year-ago period. Analysts expected revenues of $190.48 million for the quarter.
Segment-wise, Hot Topic sales declined 5.6% to $151.0 million for the third quarter compared to the year-ago, while Torrid third-quarter sales increased 2.9% to $38.6 million for the third quarter, compared to the year-ago.
Total company comparable store sales declined 5.0% for the third quarter, compared to an increase of 1.0% in the year-earlier quarter. Segment-wise comparable store sales of Hot Topic declined 5.8% for the third quarter, compared to an increase of 1.7% in the year-ago period, while comparable store sales of Torrid decreased 1.4% for the third quarter, compared to a decrease of 3.0% in the prior-year period.
Overall expenses went down with the cost of goods declining to $119.67 million from $123.12 million and selling, general and administrative expenses decreasing to $60.26 million from $62.42 million in the year-ago period.
At the end of the third quarter, the company operated 680 Hot Topic stores and 156 Torrid stores compared to 683 Hot Topic stores and 158 Torrid stores in the year-earlier period.
For the nine-month period, net income declined to $3.89 million or $0.09 per share from $5.58 million or $0.13 per share in the year-ago period. Net sales decreased to $522.48 million from $523.10 million.
Hot Topic expects earnings in the range of $0.23 to $0.26 per share for the fourth-quarter. Analysts expect fourth-quarter earnings of $0.30 per share.
HOTT is currently trading at $6.67, down $0.09, on the Nasdaq.
For comments and feedback contact: editorial@rttnews.com
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.