CITY of INDUSTRY, Calif., Aug. 13, 2007 (PRIME NEWSWIRE) -- Hot Topic, Inc. (Nasdaq:HOTT) announced today that its Board of Directors has approved the repurchase of up to $40 million of its Common Stock. The company intends to make repurchases from time to time on the open market at prevailing market prices or in negotiated transactions off the market. The timing and amount of any repurchases will be at the discretion of the company's management. The repurchase program is expected to remain in effect through February 2, 2008 unless extended or shortened by the Board of Directors.
Hot Topic, Inc. is a national mall-based specialty retailer. Hot Topic offers apparel, accessories and gifts to young men and women principally between the ages of 12 and 22. Torrid, the company's second concept, provides plus-size fashion-forward apparel and accessories that target young women principally between the ages of 15 and 29. As of August 4, 2007 the company operated 693 Hot Topic stores in all 50 states and Puerto Rico, 133 Torrid stores, and Internet stores www.hottopic.com and www.torrid.com.
In addition to historical information, this news release contains forward-looking statements related to the company's stock repurchase program, which include statements relating to financial results, guidance, store operations, projections and other financial performance and managing growth. These statements involve risks and uncertainties, including risks and uncertainties associated with meeting expected financial results, management of growth, relationships with mall developers and operators, the risk that available cash will not be adequate for planned expansion or the aforementioned share repurchase, fluctuations in sales and comparable store sales results, risks and uncertainties with respect to new store openings including risks associated with the company's new store concepts and Internet stores, music and fashion trends, competition from other retailers, uncertainties generally associated with specialty retailing, the effect of economic conditions, the effect of severe weather or natural disasters, political and/or social changes or events that could negatively impact shopping patterns and/or mall traffic, litigation proceedings and contingent liabilities, as well as other risks detailed in the company's SEC reports including its Quarterly Reports on Form 10-Q and its Annual Report on Form 10-K for the year ended February 3, 2007. Historical results achieved are not necessarily indicative of the future prospects of the company, and actual results or circumstances could differ materially from the forward-looking statements.