Hot Topic Profit Drops but Meets Expectations

Mall-based retailer Hot Topic Inc. on Wednesday reported an 18% decline in profit for the latest quarter, citing weak Halloween sales.

In the fiscal third quarter ended Oct. 30, the City of Industry-based teen retailer earned $12.6 million, or 27 cents a share. A year earlier, profit was $15.3 million, or 31 cents. Revenue rose 12% to $181 million from $162 million.

Sales at stores open at least one year, or same-store sales, fell 4.2%.

Hot Topic said it expects to open 115 stores in 2004 and anticipates ending the year with 76 Torrid stores and 592 Hot Topic stores.

The latest results matched the average forecast of analysts polled by Thomson First Call.

The company reported earnings after regular Nasdaq trading, when shares were down 8 cents at $20.01. In extended trading, its shares were up 54 cents at $20.55.