Topps reported its fiscal 2nd quarter (ending August 27th) earnings on Wednesday, and came in over expectations, largely due to a reduction of income tax reserve.  But in comparison to last quarter, when everything was down (see 'Games and Non-Sports Topps Bright Spots'), sales and profits were both up.  Sales for the quarter were $75.3 million, up 9.4% from $68.8 million last year.  Net income for the period was $4.8 million, up from $3.7 million last year.  Approximately $1.6 million of the net was the money Topps freed up from its income tax reserve.  But even taking that off the top, Topps would still have beat expectations (according to a Thomson Financial poll) by a penny a share. 

 

Among the products cited for the success of the quarter were Wacky Packages, Star Wars trading cards, and WizKids' Pirates, which, according to Topps' statement, 'enjoyed cross-over success in the quarter beyond traditional gaming stores into mass retail outlets.' 

 

Topps remained bullish on its prospects, despite the negative reaction to its attempt to sell its candy business and the results of its strategic review (see 'Topps Pulls Candy Business off Market'), and announced an additional stock buyback of 3.4 million shares.