Home / Knowledge / News / Apparel/Garments / Business changes at Hot Topic for company growth
Business changes at Hot Topic for company growth
29
Mar '11
Hot Topic Inc announced the following business changes to better position the company for growth:

1. Discontinuation of the ShockHound.com business operations.
2. Write down of unproductive inventory.
3. Write down of fixed assets that are no longer critical to the strategic direction of the company.

The company estimates that implementing these changes, along with the severance costs related to recent changes in management, will result in a total pre-tax charge of approximately $15 million ($0.21 per diluted share) primarily in the first quarter of fiscal 2011.

The company issued first quarter (13 weeks ending April 30, 2011) guidance of a loss in the range of $0.01 to $0.04 per share, excluding the costs associated with the above changes. This guidance is based upon a low-single-digit decline in comparable store sales.

The company also announced full year (52 weeks ending January 28, 2012) guidance of earnings per diluted share of $0.05 to $0.15 based upon a comp performance that is in the range of flat to down low-single-digits, excluding the costs associated with the above changes. The company now estimates that capital expenditures for 2011 will be approximately $25 million.

The company announced that Amy Kocourek, the Chief Merchandising Officer of the company's Hot Topic division, has left the company effective March 28, 2011. Following the departure of Ms. Kocourek, Lisa Harper, Chief Executive Officer, will assume direct oversight for Hot Topic merchandising.

The company also announced the discontinuation of monthly sales reporting, effective in the third quarter of fiscal 2011. The company will report quarterly sales results on the first Wednesday following the close of each fiscal quarter. The company will continue to report monthly sales results through the end of the second quarter of fiscal 2011.

Hot Topic Inc

Must ReadView All

Textiles | On 7th Dec 2016

‘Price-competitiveness is crucial for China yarn market’

Kikani Exports, India based yarn supplier with 12 years of experience ...

Apparel/Garments | On 7th Dec 2016

Bangladesh RMG exports up 6.39% in July-Nov 2016

Readymade garment (RMG) exports from Bangladesh increased by 6.39 per ...

Courtesy: Fabindia

Apparel/Garments | On 7th Dec 2016

Infosys cofounder Nilekani invests in Fabindia

Through their family office Entrust, Infosys cofounder Nandan...

Interviews View All

Evelyne Cholet
UCMTF

‘France had a reputation of being big in new ideas, but poor in marketing...

Vidhyaa Shankar. S
A Ganapathi Chettiar

'The usage of knits is getting into the boundaries of woven fabrics'

Saket Garg
Garg Corporation

The biggest challenge is lack of skilled workforce and competition from...

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Sonam & Paras Modi
SVA

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
December 2016

December 2016

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


Advanced Search