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WIKI ANALYSIS
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Business Overview
Business Financials
Business Segments
Hot Topic operates two different stores: Hot Topic, and Torrid. Each store type also has an online presence.
Hot Topic
The Hot Topic brand sells clothing, memorabilia, and electronics (such as CDs) tailored to music.
Torrid
Torrid provides plus-sized clothing to females between the ages of 15 and 29.
Trends and Forces
Recession
Niche Market
Competition
Competition for Hot Topic stores is very diverse. Local competitors include street alternative and vintage clothing stores, particularly in metropolitan areas. Mall-based, national retailers and chains in competition with Hot Topic include privately-owned Forever 21, H&M, Old Navy (a division of Gap (GPS), Buckle (BKE) , Wet Seal (WTSLA), Urban Outfitters (URBN), and Zumiez (ZUMZ). Because of their music paraphernalia offerings, additionally, smaller competition comes from chains selling music products such as Best Buy (BBY) and Borders Group (BGP).
Torrid has fewer competitors, as it caters to an even smaller niche market. Although there are retailers targeting the plus-size female demographic, including Lane Bryant, none specifically target the younger female age group in this demographic; most cater to more mature women and/or focus on career clothing. Department stores and discount stores such as Target also provide competition, as well as plus-size catalogs and web-based stores which carry plus-size junior's clothing.
| Competition | Hot Topic (HOTT)[1] | Buckle Inc (BKE)[2] | Wet Seal (WTSLA)[3] | Urban Outfitters (URBN)[4] | Zumiez (ZUMZ)[5] |
| Revenue $Mil | 761.1 | 792.0 | 593.0 | 1,834.6 | 408.7 |
| Net Income $Mil | 19.7 | 104.4 | 30.2 | 199.4 | 17.2 |
| Operating Margin % | 4.05% | 21.22% | 3.53% | 15.48% | 2.60% |
| Sales Per Store | 841 | 1.67M | 1.12M | 6.24M | 1.24M
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| Number of Stores | 840 | 387 | 496 | 294 | 343 |
| 12 Month Correlation | 1.00 | 0.18 | 0.17 | -0.45 | -0.16 |
References
- ↑ HOTT FY2009 10-k, Item 6: Selected Financial Data, page 29
- ↑ BKE FY2009, Item 6: Selected Financial Data, page 18
- ↑ WTSLA FY2009 10-k, Item 6: Selected Financial Data, page 24
- ↑ URBN FY2009 10-k, Item 6: Selected Financial Data, page 22
- ↑ ZUMZ FY2009 10-k, Item 6: Selected Financial Data, page 26
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