Hot Topic reports Q4 profit on cost-cuts

City of Industry, Calif. -- Hot Topic Inc. earned $9 million in the three months that ended Jan. 28, compared with a loss of $578,000 in the year-ago period, on reduced spending.

Revenue in the fourth quarter slipped 1% to $209.9 million, from $212.4 million. Same-store sales increased 1.3%.

In the fourth quarter of fiscal 2010, Hot Topic took a charge of $12.8 million related to a cost-cutting plan and a write-down of ShockHound, its music download and social networking website, which it shut down in May. The company said its selling, general and administrative expenses fell almost $10 million from a year ago, to $59.4 million for the quarter.

The retailer closed six Hot Topic stores during the quarter and had 628 at the end of the year. It opened four Torrid stores and closed two, giving it a total of 148 at the end of the period.

For the full year, Hot Topic lost $1.8 million, less than its loss of $8.2 million in fiscal 2010. Revenue was down 1% to $697.9 million, from $708.2 million.
 

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