Hot Topic Earnings Decline
City of Industry, Calif., Hot Topic posted net income for its fourth quarter ended Jan. 29 of $17.4 million, down from $22.5 million in the same period last fiscal year. Net sales for the quarter increased to $211 million, up from $194 million. For the fiscal year, net income was $39.7 million, down from $47.6 million a year ago.
The company expects to open 110 new stores in 2005. This includes an estimated 65 new Hot Topic stores and an estimated 45 new Torrid stores. The company expects to end the year operating 121 Torrid stores and 657 Hot Topic stores. At the end of the fourth quarter, the company operated 668 stores, including 76 Torrid stores, compared to 554 stores, including 52 Torrid stores, at the end of the fourth quarter of fiscal 2003.
FTC Reportedly to Block Blockbuster Bid for Hollywood
Washington, D.C., The U.S. Federal Trade Commission’s (FTC) competition bureau plans to recommend that the agency block a hostile bid by Blockbuster to buy Hollywood Entertainment, according to published reports.
The FTC bureau is expected to make a formal recommendation to the agency’s five commissioners within the next several days on the Blockbuster bid for Hollywood. The FTC has agreed to make a decision by March 21 on whether it will oppose the combination of the two companies.
Neiman Marcus Considers Sale of Company
Dallas, The Neiman Marcus Group, Inc. today said it is considering selling the company as a strategic alternative to enhance shareholder value. The company added that it would not disclose details about its exploration of this or other strategic alternatives until the board has approved a transaction. The Group, which includes specialty retailers Neiman Marcus and Bergdorf Goodman, is retaining Goldman Sachs & Co. as the financial advisor in this endeavor.