Hot Topic Reports Increase in Profit

Hot Topic Inc., the Industry-based retailer whose offerings include rock band T-shirts and body-piercing jewelry, said profit jumped 37% in the second quarter to $4.28 million, or 19 cents a share, matching analyst forecasts. The company said sales climbed 39% to $71.9 million, while sales at stores open at least a year grew 2.4%.

Chief Executive Betsy McLaughlin said Hot Topic continues “to see favorable reactions to [its] back-to-school merchandise assortment in August.”

Shares of Hot Topic, which are up 86% so far this year, closed off $1.34 at $30.65 on Nasdaq before the profit report was released.

Other retail earnings, excluding one-time gains or charges unless noted, include:

* Brookstone Inc., a retailer of office gadgets and household products through catalogs and specialty stores, said its second-quarter loss widened to $2.76 million, or 33 cents a share, from $399,000, or 5 cents, a year earlier. Sales edged up 1.3% to $69.6 million.

* Longs Drug Stores Corp.’s second-quarter earnings fell 35% to $11.2 million, or 30 cents a share, because of lower pharmacy gross margins, increased warehouse costs and rising expenses because of new stores. Sales rose 5.1% to $1.04 billion.

* Restoration Hardware Inc. said its second-quarter loss widened to $6.19 million, or 31 cents a share, from $3.42 million, or 20 cents, a year ago, as the housewares retailer cut prices on slow-moving items. Sales rose 3.5% to $74.8 million, while same-store sales dropped 6.3%.