THE new Hollister store, on the corner of Houston Street and Broadway, has a smelly problem. Along with the studs in shorts standing by the door, the Hollister fragrance is billowing out into the streets, neighbors complain. One frustrated protester reportedly set off a stink bomb outside the 40,000-square-foot emporium. “But it may be backfiring,” said one source. “Some say it smells better than the Hollister scent.” Page Six reported in July of complaints that Diane von Furstenberg‘s store was pumping out the designer’s signature scent, D Eau de Parfum, onto West 14th Street. The “putrid” fragrance allegedly caused coughing and dizziness. A Hollister spokesman who identified himself only as Chris told us, “We don’t spray any fragrance outside the store — only inside.” And he denied any knowledge of stink bombs.