On Nov. 15, Hot Topic (NASDAQ:HOTT) released third-quarter earnings for the period ended Oct. 28.

  • Net profit grew by 19% because of a 2% increase in sales and margin improvements.
  • Cash and short-term investments increased by 89%.
  • The company expects to open 35 new stores in fiscal 2007, which includes an estimated 15 new Hot Topic stores and 20 new Torrid stores. The company also plans to remodel approximately 60 to 80 Hot Topic stores.
  • Hot Topic carries a one-star rating in Motley Fool CAPS.

(Figures in millions, except per-share data)

Income Statement Highlights

Q3 2006

Q3 2005

Change

Sales

$196.7

$192.7

2%

Net Profit

$7.1

$5.9

19.2%

EPS

$0.16

$0.13

23.1%

Diluted Shares

44.7

45.7

(2.2%)



Get back to basics with a look at the income statement.

Margin Checkup

Q3 2006

Q3 2005

Change*

Gross Margin

34.8%

32.9%

1.9

Operating Margin

5.8%

4.9%

1.0

Net Margin

3.6%

3.1%

0.5

*Expressed in percentage points

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets

Q3 2006

Q3 2005

Change

Cash + ST Invest.

$37.7

$19.9

89.3%

Accounts Rec.

No Data

No Data

No Data

Inventory

$102.0

$96.4

5.8%



Liabilities

Q3 2006

Q3 2005

Change

Accounts Payable

$33.0

$29.1

13.3%

Long-Term Debt

$0.0

$0.0

N/A



Learn the ways of the balance sheet.

Cash Flow Highlights

YTD 2006

YTD 2005

Change

Cash From Ops.

No Data

No Data

N/A

Capital Expenditures

$31.5

$61.1

(48.4%)

Free Cash Flow

No Data

No Data

N/A



Find out why Fools always follow the money.

Related Companies:

  • Pacific Sunwear (NASDAQ:PSUN)
  • Perry Ellis International (NASDAQ:PERY)
  • True Religion Apparel (NASDAQ:TRLG)
  • Claire's Stores (NYSE:CLE)

Related Foolishness:

Pacific Sunwear is a Stock Advisor recommendation. Take the newsletter dedicated to the very best of David and Tom Gardner's selections for a30-day free spin.

Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean. This data has been provided by Netscribes. To provide feedback on this article, please click on the "feedback" button below.