Earlier this week, we reported in this space on the success of teen-retailer The Buckle, and we promised another report on yet another teen favorite, Hot Topic, which also is doing very well while most retailers suffer through the recession.
Hot Topic reported net income in the fiscal 2008 fourth quarter of $14.2 million, or 32 cents per diluted share, compared to $11.9 million, or $0.27 per diluted share, for the comparable period last year. For fiscal year 2008, the company reported net income of $19.7 million, or 45 cents per diluted share, compared to $16.0 million, or 36 cents per diluted share, last year.
Total sales for the fourth quarter of fiscal 2008 increased 7.8 percent to $238.0 million compared to $220.7 million for the fourth quarter last year.
Total company comparable store sales increased 5.2 percent for the fourth quarter of fiscal 2008. In addition, total sales for the full year fiscal 2008 increased 4.5 percent to $761.1 million compared to $728.1 million for the full year fiscal 2007. Comparable store sales increased 1 percent for the full year fiscal 2008.
As with The Buckle, Hot Topic caters to fashion-loving teens, but with a difference. Hot Topic tailors its inventory to music and pop culture, and apparently teens can’t get enough.
On its Web site, the retailer explains that it wasn’t setting the mall on fire when it opened in 1989 so it took a look at what was selling and began to change its merchandise mix accordingly.
“Hot Topic found a niche and its name was music-influenced accessories,” the company explains on its Web site. “Whether it was fingerless gloves like Billy Idol or glam metal bootstraps like Poison, music was definitely the driving force behind teen fashion.”
What’s selling in your store? Have you taken a good look lately? Do you need to alter your merchandise mix? Could be.