What is Hot Topic’s stock price, and are they publicly traded? Unfortunately, investors cannot purchase shares of Hot Topic because it is a private company. However, Abercrombie and Fitch (NYSE: ANF), Urban Outfitters (NASDAQ: URBN), and Simon Property Group (NYSE: SPG) are clothing stocks that traders can invest in.
I spent many hours of my youth hanging out at shopping malls. When I was younger, we didn’t have the internet like today. We rented physical copies of movies and games and had to use pay phones to get picked up by our parents.
We were also of an age where we didn’t have much money to spend. I remember walking around inside Hot Topic stores and checking out their latest merchandise. These stores had rock music, gaming, and pop culture toys. It was everything you wanted to be around when you were a teenager in the 90’s and 2000’s.
Now that I’m older, I look to invest in businesses with a strong brand and a loyal following that capture a niche market. Hot Topic checks off all these boxes, but can you invest in it? This article will discuss this store’s corporate history, Hot Topic stock, and other retail brands to buy if you’re interested in investing in Hot Topic.
Table of Contents
Hot Topic Introduction (No Stock Symbol)
Hot Topic is an American fashion retail store that focuses on counterculture products. It was founded in 1989 in Montclair, California, by Orv Madden. Hot Topic is a staple at hundreds of malls across America.
It targets teenagers and young adults who listen to rock music and play video games. It is widely known as being one of the largest sellers of rock band-branded t-shirts and other pop culture products.
Madden was a former executive at another retail brand: the Children’s Place. It was a major change in Madden’s scenery, but his experience with shopping mall retail was enough to get Hot Topic into mainstream popularity properly. As of 2024, Hot Topic has more than 630 retail locations across the United States and Canada.
Like counterculture, Hot Topic has evolved over the years to suit the current trends of each generation’s youth. While it started with rock music, the trends quickly changed over time.
Hot Topic has also been known for selling clothing for punks, goths, and emos and promoting genres like Japanese anime and the popular otaku culture. Accusing the store of selling sex objects and clothing to teens caused some controversy. Can you trade Hot Topic stock?
Who Owns Hot Topic?
Orv Madden founded Hot Topic and was the CEO until 2000 when Betsy McLaughlin succeeded him as the company’s new head. McLaughlin was then succeeded by Lisa Harper in 2011, who stepped aside for the current CEO, Steve Vranes, in 2016. Vranes transitioned the company from a publicly traded business to a private equity acquisition.
In 2013, private equity group Sycamore Partners acquired Hot Topic for $600 million. Sycamore is a New York-based private equity firm that buys low-priced or distressed retail and consumer-facing brands.
The firm also owns the office supply chain Staples, Belk Department Stores, and the Premium Apparel LLC umbrella, which owns brands like Lane Bryant, Ann Taylor, and Loft. Now, you can no longer trade Hot Topic stock.
Can I Buy Hot Topic Stock?
If you’ve put two and two together, you probably already realize you cannot buy Hot Topic stock. Sycamore Partners has privately owned the company since 2013. You won’t find Hot Topic trading on any public stock market in 2024. But that wasn’t always the case.
Hot Topic went public on the NASDAQ exchange in 1996 through an initial public offering (IPO). When Sycamore Partners acquired the company, it was de-listed from the market for obvious reasons. When Hot Topic was trading publicly, it was under the ticker symbol NASDAQ: HOTT.
Could Hot Topic stock trade again one day? I suppose it’s possible. It would require Sycamore Partners to sell the company to a willing buyer. Once again, the buyer must decide whether Hot Topic should be publicly listed. It would need approval from its Board of Directors as well. I wouldn’t expect Hot Topic to trade on the stock market again soon.
But that doesn’t mean you cannot invest in companies like Hot Topic. This next section will offer shopping malls and retail brands many investment options.
Hot Topic Stock Competitors
So, you want to invest in shopping mall stocks? You can’t trade Hot Topic stock, so it’s not a terrible idea, although companies like Amazon are trying their best to make malls extinct in America. Plenty of staples at shopping malls deserve your attention as an investor.
If you’d like stocks similar to companies like Hot Topic, you’ve come to the right place. Here are five shopping mall stocks I would consider if it is a sector you are interested in adding exposure to.
1. GameStop (NYSE: GME)
If there was another store I spend a lot of time in at malls, it was Gamestop. I know what you’re thinking: Gamestop is nothing but a meme stock these days, and you’re probably right.
The company’s fundamentals changed when most gaming platforms moved to digital downloads. Since then, the company has relied on some hardware for gaming, toys, and memorabilia.
I’m not exactly condoning or recommending anyone buy Gamestop stock. At this point, owning the stock seems like more of a gamble than a sound long-term investment.
But for those looking to be nostalgic about shopping malls of the past, Gamestop will always be one of the first stores to come to mind. And hey, you might get lucky if the stock sees another short squeeze!
2. Abercrombie and Fitch (NYSE: ANF)
Abercrombie and Fitch is an American fashion brand focusing on modern, youthful clothing. It was founded in 1892 by David T Abercombie and Ezra Fitch in New York City. This brand is probably the opposite demographic of what Hot Topic targets.
While Hot Topic is about counterculture and anti-establishment, Abercombie and Fitch is more about preppie, upper-middle-class fashion. As of the end of 2023, Abercrombie had more than 750 retail locations worldwide.
You might be surprised to see how well Abercrombie and Fitch shareholders have done over the past year. The stock has seen incredible growth, and shares have returned over 240% during the past 12 months.
So far in 2024, ANF stock has returned 86% on booming sales and impressive quarterly earnings beats. Will the magic continue? Stocks tend to revert to the mean over time, and it seems a bit late to chase gains now. If you’ve missed the run, I’d wait to see if you can get a lower price on Abercrombie’s stock. But they are a great Hot Topic stock alternative.
3. Urban Outfitters (NASDAQ: URBN)
Urban Outfitters is an American multinational fashion and apparel company founded in 1970. The company operates in multiple countries worldwide, with over 700 locations, most of which are in the United States.
Urban Outfitters also owns some subsidiary retail brands like Anthropologie and Free People. This company focuses on a niche market similar to Hot Topic, although it is certainly more mainstream.
As for the stock, Urban Outfitters went public in November 1993. Has it been the best investment? Not really, but it hasn’t lost you any money.
Shares have returned more than 65% over the past five years, which has trailed the benchmark S&P 500 index. URBN does not pay dividends to shareholders but has undergone a total of four stock splits.
4. Dick’s Sporting Goods (NYSE: DKS)
You might think that a retail store that only sells sports equipment and apparel would not be a great investment. On the contrary, a well-run company is well-run no matter its industry.
Dick’s Sporting Goods started in 1948 and, as of 2024, has over 720 stores across the United States. In 2023, Dick’s brought in over $12.8 billion in annual revenue.
The stock has been a surprising outperformer over the past few years. Since 2019, Dick’s has returned over 105% to shareholders, not including the dividend that currently yields 1.84%.
So far in 2024, Dick’s has returned more than 63%, making it one of the company’s best years to date. DKS is a component of the S&P 400 Midcap index.
5. Simon Property Group (NYSE: SPG)
The last stock on my list of shopping mall stocks isn’t a specific store within any mall. Simon Property Group is one of the largest owners and managers of outlet malls worldwide. It is a $54 billion company that owns or partly owns 94 malls and over 65 outlet malls in the United States alone.
Simon has long been a favorite stock among dividend investors. It lost its status as a Dividend Aristocrat during the pandemic but has since raised the dividend ten times over the past four years. It currently pays a yield of 4.92% and distributes its dividends each quarter.
Final Thoughts: Hot Topic Stock
This article has been a nice trip down memory lane if you are a millennial. Hot Topic is a staple at malls across the United States and Canada and has been a favorite store for younger consumers for decades.
If you’re still interested in investing in shopping mall franchises, there are plenty to choose from. Unfortunately, Hot Topic is no longer one of them. The company was public until 2013 when Sycamore Partners acquired it.
Is investing in retail and shopping mall stocks a good strategy? As you saw from my list of stocks, it can be. As always, do your research into the stocks you choose to buy.
Although shopping malls might not be as prominent as they once were, there are plenty of companies to invest in that have seen favorable returns for shareholders over the years.
If you enjoyed this article, check out our trading community for more education at BullishBears.com!
Frequently Asked Questions
Hot Topic stock no more. It used to trade on the NASDAQ exchange but went private in 2013. Private equity group Sycamore Partners owns Hot Topic. Therefore, it's no longer traded publicly.
In 2013, private equity group Sycamore Partners bought Hot Topic for $600 million. Sycamore Partners still owns Hot Topic and has no plans to return it to the public stock market.
It's an interesting question since Hot Topic has always tried to be counterculture. The store is still popular, although today, it sells a lot more mainstream products and memorabilia than it did in the past.
Sycamore Partners is a private equity firm focusing on undervalued and distressed retail chains. The company owns Hot Topic, Staples, the office supply chain, and fashion brands like Lane Bryant, Ann Taylor, and Loft. It also owns Talbots, Belk, and the Canadian hardware chain Rona.
