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Hot Topic Inc. (HOTT) filed Quarterly Report for the period ended 2011-10-29.
Hot Topic Inc. has a market cap of $316.6 million; its shares were traded at around $7.05 with a P/E ratio of 64.1 and P/S ratio of 0.5. The dividend yield of Hot Topic Inc. stocks is 4%.
This is the annual revenues and earnings per share of HOTT over the last 10 years. For detailed 10-year financial data and charts, go to 10-Year Financials of HOTT.
Highlight of Business Operations:
Increase in comparable net sales from Torrid stores in the third quarter of fiscal 2011 compared to the corresponding period from the prior fiscal year.Income from operations increased $3.9 million to $4.2 million during the third quarter of fiscal 2011 from $0.3 million during the third quarter of fiscal 2010. As a percentage of net sales, income from operations was 2.4% in the third quarter of fiscal 2011 compared to 0.2% in the third quarter of fiscal 2010.
Increase in comparable net sales from Torrid stores in fiscal year-to-date 2011 compared to the corresonding period from the prior fiscal year.
Loss from operations increased $5.3 million to $18.3 million during fiscal year-to-date 2011 from $13.0 million during fiscal year-to-date 2010. As a percentage of net sales, loss from operations was 3.7% during fiscal year-to-date 2011 compared to 2.6% during fiscal year-to-date 2010.
Inventories Inventories are valued at the lower of average cost or market, on a weighted average cost basis, using the retail method. Under the retail method, inventory is stated at its current retail selling value and then is converted to a cost basis by applying an average cost factor that represents the average cost-to-retail ratio based on beginning inventory and the purchase activity for the month. Throughout the year, we review our inventory levels in order to identify slow-moving merchandise and use permanent markdowns to sell through selected merchandise. We record a charge to cost of goods sold for permanent markdowns. Inherent in the retail method are certain significant management judgments and estimates including initial merchandise markup, future sales, markdowns and shrinkage, which significantly impact the ending inventory valuation at cost and the resulting gross margins. To the extent our estimated markdowns at period-end prove to be insufficient, additional future markdowns will need to be recorded. Physical inventories are conducted during the year to determine actual inventory on hand and shrinkage. We accrue our estimated inventory shrinkage for the period between the last physical count and current balance sheet date. Thus, the difference between actual and estimated shrink amounts may cause fluctuations in quarterly results, but not for the full fiscal year results.
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