(Filed Under Financial and General Interest News). Specialty retail chain Hot Topic Inc. reported a dramatic rise in third-quarter profit compared to the same quarter in 2010, due to the company’s year-ago decision to book a non-cash charge related to the dropping value of its ShockHound music and merchandise website.
Hot Topic reported a net income of $3.1 million, or 7 cents a share, compared with a net income of $400,000, or 1 cent a share, in the third quarter of 2010. Disappointing sales of Halloween merchandise led to a 1.6 percent drop in sales in Hot Topic and Torrid stores open at least one year. Revenue dropped 4 percent to $175.8 million from $183.2 million in the prior year’s period.
The company also announced that C.E.O. Lisa Harper was appointed chairman of its board of directors. In connection, Matthew Drapkin was appointed lead director to act as liaison between Harper and the company’s independent directors. Former chairman Bruce Quinnell will continue to serve as chairman of Hot Topic’s audit committee.
Hot Topic, Inc. currently operates 634 Hot Topic stores and 146 Torrid stores in the U.S., Puerto Rico and Canada as well as e-commerce sites HotTopic.com and Torrid.com.
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