Search
 

Hot Topic Slows Expansion

CITY of INDUSTRY, CA-A poor earnings performance compels the apparel retailer to decrease its number of new stores by 40%.

By Jennifer D. Duell | Updated on March 16, 2006

CITY of INDUSTRY, CA-Hot Topic Inc. will open 50 stores this year, a decrease from its original expansion plan of 85 stores. The 40% decrease impacts both the Hot Topic and Torrid brands; 40 new Hot Topic stores are planned for this year, 20 less than previously announced, and an estimated 10 new Torrid stores will open this year, 15 less than previously announced.

“We believe this is absolutely this best move for our company,” said CEO Betsy McLaughlin during the chain’s earnings conference call on Wednesday. The decision to scale down expansion plans comes on the heels of another disappointing quarter for the apparel retailer, which currently operates 662 Hot Topic stores and 120 Torrid stores.

During the fourth quarter, the chain reported net income of $10.6 million, or 23 cents per diluted share, down from $17.4 million, or 38 cents per diluted share for the same period last fiscal year. “We were disappointed in fourth quarter results,” McLaughlin said, adding that the Southwest and Midwest regions were the worst performing.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.