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.
DSW announces two stores in Manhattan
New York — DSW Inc. has opened on 34th Street in Manhattan, in the heart of New York’s fashion district. The retailer also announced plans to open a store on the Upper West Side in early summer 2012.
At over 33,000 sq. ft., the 34th Street location is the one of the largest in the DSW chain. It has three floors of selling space. The DSW store at 79th and Broadway will also be very large, measuring over 32,000 sq. ft.
Williams-Sonoma puts 2011 to bed with higher profits
SAN FRANCISCO — Williams-Sonoma ended fiscal 2011 with revenue and earnings growth in its fourth quarter. The company reported that net revenues for the fourth quarter of 2011 increased 6.1% to $1.3 billion versus $1.2 billion in the fourth quarter of 2010. The company reported diluted earnings per share on a GAAP basis of $1.17 compared with $1.05 for the same period last year.
Laura Alber, president and CEO commented, “Fiscal 2011 was a year of milestones – both in terms of operational performance and progress against our long-term growth initiatives. Through strong execution and a superior multichannel strategy, we delivered record earnings and profitability in a promotional environment, never losing sight of our mission to enhance our customers’ lives at home.”
The company reported comparable-brand revenue growth of 6.6% for the quarter versus 10.9% for the same period last year. Comparable brand revenue growth includes both comparable-store net revenues and total direct-to-customer net revenues. See Exhibit 2 for quarterly comparable brand revenue growth history by concept.
During fiscal 2011, net revenues increased 6.2% to $3.721 billion versus $3.504 billion in FY 10. Comparable-brand revenue in fiscal 2011 increased 7.3%.
Diluted earnings per share for fiscal 2011 on a GAAP basis were$2.22 compared with$1.83 for the same period last year.
For the first quarter of 2012, Williams-Sonoma is expecting net revenues in the range of $800 to $820 million and comparable-brand revenue growth between 3% and 5%.