On November 16, 2010, Hot Topic announced their 3rd quarter financial results with a grim outlook. Net income in the third quarter was $0.4 million compared with $5.8 million at the same time last year. It also said much of its impairment was of ShockHound assets.
Overall, their 3rd quarter total sales decreased 3.4% to $183.2 million compared with $189.6 million last year at the same time. Total comparable store sales were down 5%.
The company also announced that is undergoing a cost reduction plan to meet the current challenges of the marketplace, including closing 40-50 underperforming stores by the end 2011, and reducing 14% of their home office and field management positions.
