Hot Topic, Inc. Earnings Cheat Sheet: Streak of Four Straight Quarters of Shrinking Margins Broken

Hot Topic, Inc. (NASDAQ:HOTT) reported its results for the second quarter. Hot Topic Inc. is a mall- and web-based specialty retailer operating the Hot Topic and Torrid concepts, as well as the e-space music discovery concept, ShockHound.

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Hot Topic Earnings Cheat Sheet for the Second Quarter

Results: Loss narrowed to $6.2 million (loss of 14 cents per diluted share) from $6.3 million (loss of 14 cents per share) in the same quarter a year earlier.

Revenue: Rose 0.6% to $150.9 million from the year earlier quarter.

Actual vs. Wall St. Expectations: HOTT reported an adjusted net loss of 8 cents per share. By that measure, the company fell in line with the mean analyst estimate of a loss of 8 cents per share. Analysts were expecting revenue of $148 million.

Key Stats:

A year-over-year revenue increase last quarter snaps a streak of four consecutive quarters of revenue declines. The worst quarter in that span was the second quarter of the last fiscal year, which saw a 4.9% decrease.

The company has now fallen in step with estimates for the last three quarters. It reported 0 cents in the first quarter, net income of 12 cents in the fourth quarter of the last fiscal year and net income of 5 cents in the third quarter of the last fiscal year.

Competitors to Watch: Zumiez Inc. (NASDAQ:ZUMZ), Urban Outfitters, Inc. (NASDAQ:URBN), Mecox Lane Limited ADR (NASDAQ:MCOX), Amazon.com, Inc. (NASDAQ:AMZN), dELiA*s, Inc. (NASDAQ:DLIA), American Eagle Outfitters (NYSE:AEO), Aeropostale, Inc. (NYSE:ARO), The Buckle, Inc. (NYSE:BKE), Pacific Sunwear of California, Inc. (NASDAQ:PSUN), and The Wet Seal, Inc. (NASDAQ:WTSLA).

Investing Insights: Steve Jobs Prepares to Deliver a New Catalyst for Apple’s Stock.

(Source: Xignite Financials)

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